MMR: Mass Market Retailers, July 13, 2020

OPINION Digital Tools Will Play a Critical Role as Stores Start Reopening By Maulik Bhagat and Bhrugu Pange As the economy restarts and businesses prepare to bring workers back there are many questions around how to safely reopen workplaces whether retailers offices or warehouses Different states and even regions within some states are developing guidelines and goal oriented phased time lines Retail locations manufacturing sites distribution centers and offices each pose their own set of challenges around health and safety Brick and mortar retail has its own set of complications as stores across the country enter phased reopening Retail needs to adapt to the new digital controls being implemented more broadly as well as to new procedures that might change the nature of shopping itself For example the purpose of a physical showroom for home products is for customers to have a chance to experience a product to touch it and imagine what it would be like in their home Until now apparel stores have functioned by allowing customers to pick up and try on and returning unpurchased products to the floor A crowded store in an earlier time was a good thing Obviously these behaviors have become problematic since the occurrence of COVID 19 but without them what is brick and mortar for And how can it adapt Mobile apps offer a range of capabilities There are a number of initiatives stores can take in order to increase safety while remaining positive and enjoyable for both customers and employees and they need to take into account the entire ecosystem not just store owners employees and customers but real estate managers other neighborhood stores and the whole supply chain First they must manage their flow both in and outside of the store To avoid antsy crowds waiting on the sidewalk some stores might want to consider shopping by appointment for example This of course wont be practical for every type of store Even retailers who have de risked the shopping experience itself are still struggling with this step And once theyre in the store customers now must interact with products in a wholly new way Stores need to be creative allowing customers to experience products more safely this may be achieved through laying plastic sheeting over furniture laying out the store in a more socially distant manner or decentralizing the experiential process through use of augmented reality or using small Bhrugu Pange Maulik Bhagat fabric samples Apparel stores can consider having a sample size set that is single use customer and implementing some level of digital augmentation as well Furthermore sales staff may have to adapt to changing roles as new policies change although its imperative that they remain first and foremost a source of minimally invasive positive interaction with customers Making sales associates into social distancing police will only damage the buying experience instead retailers should employ empathetic messages such as signs and digital products to encourage safer behaviors Given the need to gather and disseminate information and to communicate in real time digital solutions will be critical to successful reopenings Mobile apps offer a range of capabilities that make them ideal for keeping individuals updated about conditions in and around workplaces through notifications plan updates schedule changes proximity warnings capacity limitations and infection risks They also make it possible for people to self report about their health before entering a facility Self reporting is critical to protecting peoples health not just that of the individual sharing information about any symptoms they may have but also anyone who may or has come into contact with that person This can prove somewhat challenging Health data is subject to privacy regulations The idea is not to ostracize those who test positive but to let them know that information on their health status is critical to curtailing outbreaks Third party data collection and anonymization can be an important part of this digital solution safeguarding it in the hands of data protection experts Employers and facility managers can then track anonymous aggregated information via online command centers and analytics to identify hot spots of infection and take fast action to prevent further spread and mitigate liability concerns In short digital tools like apps allow for enhanced engagement among employers employees and other stakeholders that protects them all Of course technology is just one part of a broad web of integrated concepts and solutions that businesses should consider in order to safely and successfully reopen and rethink the people centered aspects of their operations for the longer term They need to consider and weigh guidance from government entities like the CDC and OSHA as well as third parties like industry organizations in order to develop best practices Heightened policies and protocols around personal protective equipment PPE facilities and cleaning regimens are called for and EEOC and CDC guidance around employee health monitoring and screening should be followed Prior to reopening steps should also be taken to make sure facilities that were dormant for months dont pose any unintended risks for example there are very credible concerns about the possibility of waterborne bacterial diseases such as Legionnaires being unleashed from plumbing systems that have been stagnant since the shutdown Retailers will make decisions around who returns to the workplace and when gradually increasing head count over coming weeks and months They require a written well communicated social distancing plan that includes both physical space restrictions and considerations around staggered scheduling to reduce the number of people in an area in a given time They should consider how remote work fits in to the new reality what job types can continue to do it productively which personalities are best suited to it and whether it should be offered part of the time or for the long term Digital solutions have a role to play in all of this from disseminating information to gathering employee health data and even to providing real time warnings around potential social distancing breaches We have some way to go as we progress toward the hoped for new normal of the post COVID 19 era safe successful retail reopenings are a critical early step Under employer guidance people need to protect themselves as well as others from infection through a continued emphasis on actions like PPE use spacing and hygiene Digital tools that enhance and reinforce public health protocols and workplace safety are critical to this progression Maulik Bhagat mbhagat@ aarete com is a managing director at the global consultancy AArete where he leads the digital and data services practice Bhrugu Pange bpange@ aarete com is a managing director and leads AAretes technology services group Luring Prevention Minded Shoppers By Megan Moyer Finding ways to connect with your shoppers and draw in new consumers is an ongoing effort that needs constant reevaluation based on market conditions the evolution of shopping behaviors trends and the economy One trend that continues to shape retailers strategies is the self care movement As consumers take more responsibility and control of their own or their loved ones health and wellness retail channels should consider how they can best attract and serve these shoppers Based on consumer research conducted by Acosta for leading retail industry trade association GMDC Retail Tomorrows Selfcare Roadmap and Hamacher Resource Groups HRGs analysis of the responses this is the first article in a series of four examining consumers primary purchase intent preventing maintaining recovering or caregiving This article will concentrate on those shoppers focused on prevention Lets start with the demographics of the preventing group Females represent 60 of this group The average age of these consumers is 57 and those over age 37 represent a whopping 94 Is it because those in their 20s and early 30s are in the invincible phase of their lives and thus arent thinking about purchasing products that could help prevent future health or wellness concerns Shoppers with a prevention mindset can be found evenly spread across the country and the largest section of the group is in the annual income range of 25001 to 50000 The secondlargest section earns less than 25000 year Ensuring you stock both branded and private label products with a lower price point is essential when catering to the needs of these shoppers The prevention focused shoppers preferred outlet is mass discounter with drug store coming in second and grocery third Their intended purchases were for these top three health concerns cough cold flu throat chronic pain and oral care It Brands have room for improvement when it comes to directions for use makes sense that this group with the majority being middle age or older identifies chronic and general pain relief as top categories since conditions such as arthritis primarily affect the prevailing age range Upper respiratory issues like cold flu and allergy are among the top three conditions for the remaining three groups a universal concern regardless of age or self care journey When looking for over thecounter recommendations twothirds of consumers in this group are influenced by their physicians and their own research Doing their own research beats consulting their physician by a very slim margin 03 Their next most trusted resources are friends family then pharmacists When asked about what could be improved upon to better serve them this group indicated these top areas from a consultative perspective better and more readable instructions more educational material on the condition s they are trying to prevent and better product packaging Through the lens of shelf experience their largest desires were for nonprescription products to be in stock when needed and easier to find information on the brands and retailers websites This indicates brands have room for improvement when it comes to packaging and directions for use as well as making product information on their websites more available It is also an opportunity to provide educational materials and help their retailer partners by supplying comprehensive product information and images for the retailers websites Retailers and brands can act on these insights to attract and serve the prevention minded group of consumers in a number of ways Looking at marketing alone there are opportunities for outreach to health care providers making in store and online information available and easy to understand and enhancing packaging But this is just one segment of self care shoppers the challenge will be balancing the needs of each group The next article in the series will look at the maintaining consumer segment and ways to best reach them Megan Moyer is an industry researcher and writer with Hamacher Resource Group Inc which focuses on improving results across the retail supply chain 18 MMR July 13 2020