- Cash conservation was by far the #1 theme voiced amongst top executives. This includes cutting investments, delaying payments, and punting hiring decisions, and potential layoffs. “Cash is king” has not been more resonant.
- Many execs are turning to ancillary revenue streams like e-commerce, catering, delivery, and drive-thru to limit slowdown of sales.
- Speed needs to be a core part of decision making here. Now’s not the time to wait around, but the time to take decisive preemptive measures.
- Communication was another core theme: monitoring the news intently, communicating strategy with employees, and staying connected with customers via social media.
- Many execs have instituted work-from-home policies to ensure safety of their employees, and cutting travel.
Retail executives’ response to COVID-19
We asked retail executives how coronavirus will affect the industry.
Covid-19 is creating absolute hysteria in many of our communities. But what level of impact will it have on the retail real estate industry? It’s been difficult cutting through the noise and media, so we turned to dozens of execs and CEOs in the retail industry to get firsthand data on how they’re responding. Here are 3 key takeaways. (Disclaimer: LocateAI does not claim these results are indicative of the future nor representative of the entire industry.) 1. Retail execs are gearing up for a steep decline in top line sales of up to 50% across the country for the remainder of 2020. Nearly every CEO made the claim that they expect top line sales to decrease by between 25% and 50% across the country. The hardest hit sectors within retail will be entertainment and food services, which aligns with the growing public motto of “social distancing.” Major cities like NYC announced in-store bars and restaurants will close effective 8pm Mar 16, per NYT. There is less consensus on how long Covid-19’s financial impact will last. The most common response fell in between 3 and 6 months before some level of normalcy, while many anticipate the virus impacting sales for 12 months or longer. 2. Execs are wasting no time to respond to limit financial impact. Here are top 5 measures that execs are taking in response to Covid-19:
TRENDS & INSIGHTS
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