In-person interaction has dramatically changed or been supplanted by digital engagement, and early indications suggest that much of this shift may endure in the long term. COVID-19’s impact on customer behavior has reshuffled the deck. The savviest retailers have spent years creating omnichannel strategies that blend physical and online channels to engage consumers in the channel of their choosing. How retailers can meet new customer expectations To remain relevant in this changed environment, retailers should set a North Star to guide their aspirations for customer experience, with specific goals across five actions: double down on digital, inject innovation into omnichannel, transform store operations and win on “SafeX,” reimagine the physical network, and embrace an agile operating model (Exhibit 2). Consumers report high intention to continue using models such as BOPIS (56 percent) and grocery delivery (45 percent) after the pandemic. More important, many of these new engagement models are here to stay. 2 “Delivery and BOPIS benefit, shopping centers not yet heavily impacted,” Retail Touchpoints, March 11, 2020,. Many customers have also tried new omnichannel models: buy online, pick up in store (BOPIS) grew 28 percent year-over-year in February compared with 18 percent in January, and grocery delivery is up by 57 percent. In the United States, e-commerce availability and hygiene considerations are increasing store switching behavior, with 17 percent of consumers shifting away from their primary store. We have seen a consolidation of shopping trips: in China, for example, the number of transactions in grocery declined by 30 percent during the pandemic, while the average value per transaction increased by 69 percent. 1 McKinsey COVID-19 US Consumer Pulse Survey, April 20–26, 2020, n = 1,052, sampled and weighted to match US general population aged 18 years and over. The pandemic has changed consumer behaviors, some permanently.
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