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In terms of our surveys, no question we've posed has seen such a
drastic swing in how retailers responded. Initially, just 10% of retailers
had made efforts to secure financial assistance. By April, more than
50% of retailers reported seeking aid. It's also worth noting that this
survey concluded on April 2, the day before the Payroll Protection
Program opened the application process.
STAFF SIZE CHANGES
When customers aren't walking through the door, or the doors are
shut, it becomes increasingly difficult for independent retail store
owners to justify spending capital on sales staff.
Whether through furloughs, layoffs or other means, retailers are
having to make the tough decision to reduce staff size. Early on, 38%
of our retailers reported reducing their staffs. By April, that number
rose to 43%.
MAKING A DIGITAL PUSH
In spite of the downturn that today's retail landscape is facing, there is
a glimmer of hope and positivity, and it comes in the form of online retail.
Retailers with a digital presence have reported strong numbers
during the first three weeks of this outbreak. In the first Nationwide
survey, 53% of our retailers reported that online traffic was relatively
unchanged, with 25% reporting an increase. By April, just 28% were
noticing similar traffic online, while 47% reported an increase. Diving
deeper, 13% of retailers reported seeing a significant increase in
online traffic in Nationwide's latest survey, compared to just 6% in the
first survey.
The strongest gains in online traffic were realized by consumer
electronics retailers, who've likely benefitted from consumers needing
to invest in equipment to improve their home office setup.
Beyond a simple increase in web traffic, however, retailers have also
reported making real-time investments in their digital platforms.
Specifically, 35% of dealers said they have enhanced their website
functionality by adding features like an online chat tool and advanced
e-commerce capabilities. Another 14% said they've used collaborative
video technology to chat face-to-face with their customers.
While times are certainly getting tougher for the independent
retailer, this industry continues to show its grit. Adaptability has always
been a strong suit for our small businesses, and there's no better time
than now for dealers to put that strength on display as they look for
ways to continue serving their customers during this critical and
challenging time.
These figures represent Nationwide survey data as of April 2,
2020. For the latest data, be sure to visit the Nationwide Coronavirus
Resource hub at www.nationwidegroup.org/coronavirus.
THE IMPACTS OF COVID-19
