RETAILOBSERVER.COM APRIL 2020
4
Eliana Barriga
eliana@retailobserver.com
Stay calm and carry on,
APRIL 2020, VOLUME 31, ISSUE 4
CELEBRATING OUR 31
ST
YEAR
AS THE RETAIL OBSERVER
PUBLISHER/MANAGING EDITOR
E LIANA BARRIGA
DIRECTOR OF SALES AND MARKETING
MOE LASTFOGEL
ART DIRECTOR
TERRY PRICE
CONTRIBUTING WRITERS
SARAH BROWN
CHAD FISCHER
MARIO JUAREZ
CHRIS KIRK
ANDY KRIEGE
STEVEN MORRIS
DENNIS SHIELDS
JOHN TSCHOHL
LIBBY WAGNER
ALAN WOLF
RALPH E. WOLFF
DEADLINE FOR JUNE 2020 ISSUE:
MAY 1, 2020
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THE RETAIL
I
t's March 10, 2020 and I am contemplating the past two weeks — concern over potential
event cancellations stemming from the coronavirus outbreak have evolved quite rapidly.
The coronavirus outbreak is first and foremost a human tragedy, affecting more than
110,000 people globally as of this writing (source: World Health Organization). It is also
having a growing impact on the global economy.
It was only a week ago that we were nervously discussing the possibility of event
cancellations, and this has now become a reality. The domino effect had begun with the
cancellation of the 2020 Inspired Home Show, IHA's Global Home + Housewares Market
in Chicago. Soon thereafter, the Architectural Digest Design Show in New York City
announced the rescheduling of their show to June 25-28.
Fears over the growing global coronavirus outbreak sparked widespread economic
worries, wild stock market swings that left small business owners feeling the ripple effects
of canceled or re-scheduled conferences, travel reservations, closed factories, and
nervous consumers. Cancellation rates have been running more than 60 percent and we
expect that number to rise.
Conference cancellations have wide-reaching effects for many industries, including
freight, show promoters, labor unions, manufacturers, and convention facility bookings.
With many tradeshow organizers unsure of when or where to reschedule their events, a
challenge has arisen to minimize the loss of trade show booth materials already on trucking
routes. The logistics involved are very complicated in minimizing the financial repercussions.
Meanwhile, Chinese factory closures have affected U.S. businesses immensely. The
inability to secure parts and inventory combined with shipping delays have been devastating.
The New York Times reported that due to the coronavirus outbreak, cargo volumes at U.S.
ports might be down by 20 percent or more on a year-on-year basis compared to 2019.
Where should your business focus? Start by protecting your employees. Set up a
response team, as this crisis has been emotionally challenging for many people. Ensure
that your financial liquidity is sufficient to weather the storm ahead. Optimize your accounts
payable and receivables as well as any cost reduction methods you can employ.
The coronavirus crisis is a story with an unclear ending. What is clear is that the human
impact is already tragic. We need to act swiftly and consciously to protect our employees
by addressing the many challenges and risks by mitigating the outbreak in whatever ways
we can.
SMALL BUSINESS &
THE COVID-19
CRISIS
Elle's View As I See It
