Experts outlined advice for retailer survival through next six months of COVID-19, during A2Y Chamber “Virtual Early Edition”

Outdoor dining was never anticipated to serve as ultimate path to survival for restaraunts as the world adapts to ongoing science and social impacts of COVID-19. Recent onset of frequent rain coupled with dropping temperatures suggest a more inhospitable environment than when this pandemic first hit Michigan back in March. [1-4]

Mainstreet retailers are in much the same boat. [5]

And thus came the Ann Arbor / Ypsilanti Chamber “Early Edition” breakfast this morning. Succinctly titled “Shop Local,” it promised to provide advocacy “from our small business community on the importance of shopping local.” Ironically, the moderated panel of five would share their insights virtually, via Zoom. [6-8]

Regroup President Janet Muhleman provided core structure. Critically, this began with a summary of current consumer mindset, where “73% of consumers favor socializing at home in the next six months …. [9]

[And] 59% of consumers favor connecting virtually with friends in the next six months ….

Against this, the good news is that “56% of consumers are shopping neighborhood stores or buying more locally sourced products,” better than two thirds of which “planning to continue with this behavior in to the longer term.”

The second quarter of 2020 saw a 127% growth in “buy off-site, pick-up in-store” sequences. This suggests a solid opportunity for brick-and-mortar to maintain, levarage customer touchpoints. A core element of this should include communicating planning and processes in place designed to keep them safe.

Additionally, while it may seem that everything that has needed to adapt has already been adapted over the last half-year-plus, we have never gone through the holiday season. Again pointing to numbers, Ms Muhleman emphasized the following under a heading that read “Think ahead about holiday shipping, fulfillment and that last mile delivery.” [10-12]

• 700 million packages are at risk of being delayed this upcoming season
• $4.5 billion in “COVID surcharges” are anticipated

Even as the need to invest in getting the word out continues to become more critical, the funds to make this so are tight. To this end, panelist Sandra Andrade of Main Street Ann Arbor discussed the “Show Your Love A2” initiative undertaken by her organization. Under a single leveraged umbrella, its aim is to provide tools which can be adapted to individual business offerings, sizes, and markets. [13]

For his part of the presentation, Bivouac owner Ed Davidson emphasized the devestating effects of lost tourism business. Art Fair was cancelled this past summer. Football revenue is down some $79 million, he said. [14,15]

“This community values a vibrant, diverse downtown,” he continued. “That’s going to change if we don’t get the support we need now.

I just read in The Observer that nine businesses have closed in the downtown area. That number is going to jump without outdoor dining. [16]

Consensus among all who were a part of this discussion — including Katie Kaul of Regroup, Haley Burrill with the University of Michigan Credit Union, along with Cortney Kistler on behalf of this Early Edition sponsor Colliers International – Ann Arbor and Andy LaBarre from A2Y Chamber as moderator — the survival, if not success, of hometown enterprises, will require advancement on two fronts. [17,18]

• Businesses collaborating through media, chambers, and social media to overcome current impediments to making necessary, fluid connections with their customers; and,
• Customers who for the time being are willing to adjust their spending habits in order to support brick-and-mortar offerings with more of a distant, as opposed to immediate anticipated gratification.

Shop early in order to support shopping local. Obviously consider gift card offerings available at restaurants and retailers. But think outside of the box, too.

For example, consider opportunities to cater virtual holiday parties. Or, in cases where such festivities may be set aside for the balance of 2020, give thought to redeploying those funds to initiatives understaken by your local chamber or main street organization so that they can be leveraged to purchase radio, social, and even television time to promote consumer spending in the community.

After all, who wants to come out the other side of a pandemic only to find their favorite going-out spots closed for good?

References

1. “Southeast Michigan Cities Rush to Expand Patio Seating for Restaurants and Bars” Brenna Houck (June 4, 2020) Eater Detroit.
2. Coronavirus (COVID-19) (home page).
3. “Coronavirus Disease 2019 (COVID-19)” CDC: Centers for Disease Control and Prevention.
4. “Novel Coronavirus Reports” CDC.
5. “Customer Confidence Is Key To E-Commerce Success” Jia Wertz (October 22, 2020) Forbes.
6. Ann Arbor / Ypsilanti Regional Chamber (home page).
7. “A2Y Chamber Early Edition Breakfast” Ann Arbor / Ypsilanti Regional Chamber.
8. “A2Y Chamber Event: Virtual Early Edition – Shop Local” (October 28, 2020) A2Y Regional Chamber.
9. Regroup (home page).
10. “Retail Insights and Trends: Holiday and Seasonal Trends” NRF: National Retail Federation.
11. “Retail’s Holiday Season Hangs By A Thread As Consumers Will Cut Spending 7%, According to Deloitte” Pamela N Danziger (October 20, 2020) Forbes.
12. “Are Your Retail Stores Ready For The 2020 Holiday Season (Part Two – Dealing With Covid)?” Pat Fitzpatrick (August 30, 2020) Forbes.
13. Main Street Ann Arbor (home page).
14. Bivouac (home page).
15. The Ann Arbor Art Fair (home page).
16. Ann Arbor Observer (home page).
17. University of Michigan Credit Union (home page).
18. Colliers International – Ann Arbor (home page).