In this Placer Bytes we dive into Costco’s performance and what changes to consumer behavior could mean for the coming months. Then we take a look at two of retail’s strongest pre-COVID performers to get a sense of how they could rebound.
The short term impact of the COVID-19 pandemic has been the primary focus, and with good reason. But, with states beginning to loosen restrictions and retail showing signs of a recovery, there are changes to consumer behavior that could have potentially long-lasting ramifications.
Walmart and Target have been two of the more significant retailers to track during the pandemic because of their essential retail status. While both saw significant year-over-year growth from 2018 to 2019 in Q1, that visit growth turned to a decline in 2020 as a result of the pandemic. Yet, the picture is far more complex than a simple decline.
With the pandemic leaving a massive impact on the retail sector, much of the discussion has rightfully centered around the huge impact on sales and performance. Yet, coronavirus has affected the way consumers shop as well, and this could potentially last far longer.
Several states have begun reopening their economies and the wider retail ecosystem has been watching closely. While early returns have been mixed in states like Georgia, signs are beginning to appear that could give a strong indication of what path retail’s recovery could take.
With the rise of social distancing and stay-at-home regulations came an increased focus on work from home. And this process may have given a second wind to brands like Office Depot and Staples. Analyzing traffic since the start of 2019, shows two clear trends.
