Retail Observer

RETAILOBSERVER.COM MAY 2020 34 At Nationwide Marketing Group, we've tried to stay out in front of the coronavirus pandemic and how it's impacting the channel – through an unprecedented array of support assets, resources and quick delivery of information. One key element of this effort was made possible by asking our members for their feedback on a range of topics. Mindful that this pandemic has created a retail landscape where major operational changes have been frequent and no real-time data were available, the best and only source of insight was the front lines – the retailers living and reacting to this very fluid crisis. On a roughly weekly basis since mid- March, we have conducted quick-turn member surveys, each in the field for just 24 hours, which have been enlightening on a number of levels. Hundreds of members have participated in these surveys, shedding light on things like how they're putting their employees' and customers' health first, how they've shifted their operating hours, how traffic to their stores and websites has changed, and more. In total, we've received more than 1,600 responses. And in the pages ahead, we'll dive deep into how the independent retail channel is responding to and continuing to work through the COVID-19 outbreak. To our members – we appreciate your transparency, insights and continued participation in these surveys. And to the wider independent retail channel, we hope that these and our other COVID-19 resources continue to provide value to you and your business. Please do not hesitate to reach out to us, and be sure to regularly check out our Coronavirus Resources page (www.nationwidegroup.org /coronavirus) for the latest information. For the purposes of this report, the data you see below are derived from the first three surveys Nationwide conducted – one on March 19, another on March 26 and a third on April 2. At the time of publication, our April 2 survey offered the most current dataset available. HOW STORES HAVE BEEN IMPACTED Up front, we wanted to get a sense of how retailers' stores have been impacted by the spread of COVID-19. Are they closing completely? Are they reducing hours? Have they been ordered to close by a government mandate? What's immediately clear is that, by the end of March, a large portion of retailers were forced to shut their doors because of government mandates and stay-at-home orders that impacted non- essential businesses. In particular, furniture and bedding stores were the hardest hit, with 38% and 35% of those retailers, respectively, reporting that they were forced to close their stores. In a somewhat positive sign, appliance retailers have been somewhat "shielded" by the shutdowns, with 49% of those dealers reporting that they are still maintaining normal store hours. IN-STORE TRAFFIC SLUMPS It should come as no surprise, given the numbers above, that foot traffic suffered greatly during the early weeks of the national social distancing effort. Across the board, 80% of our retailers reported a decrease in traffic in our first survey, before most of the stay-at-home orders were put in place. By the start of April, the figure had jumped to 89%. Important to note: of our members who reported closing their doors, 90% of those retailers say they were forced to do so because of a government mandate. THE IMPACTS OF COVID-19

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