The shock of a near-simultaneous shutdown of the global economy has been wrenching for most industries, with retail among the worst hit. In responding to the global crisis, retailers are having to focus on short-term operational issues while also looking ahead at what is likely to be a very different retail landscape. This is a challenge like never before, but there have been some impressive examples of innovation even in the middle of chaos. In this series, we take a look around the world and focus on those countries hit hardest by the coronavirus to highlight instances of quick thinking and rapid innovation in retail.
View our COVID-19 Response guides for more insights and advice for businesses impacted by the novel coronavirus.
Loyalty gets tested…and wins
Despite severe restrictions on movement, Italian shoppers stuck to tried and tested retailers and brands for their grocery needs. Esselunga, whose superstores are mostly located outside of city centers, initially saw hits to revenue because government recommendations asked that people limit visits to their most proximate store. However, the grocer was able to partially offset these declines by leveraging its customers’ strong loyalty. Most purchases for the retailer during the period of closure occurred on its loyalty card. Esselunga took measures to increase social distancing and streamline the flow of shoppers in stores, and many loyal consumers preferred waiting in long lines to going over to a different store. The lesson? Building trust works even in a crisis, or maybe especially in one.
Marco Eccheli, Managing Director
Michele Paolo D’Angelo, Director
Lorenzo Novella, Director
Streamlining delivery to minimize delays
As home delivery became the norm and demand skyrocketed, industries joined together to ease their collective burden. Grocery chains Hema and 7Fresh were among retailers that brought on thousands of employees from restaurants to help with delivery-related activities such as sorting and packing. Hema, also known as Freshippo, commissioned buses to help consolidate deliveries instead of sending individual couriers on electric scooters. Restaurant delivery partner Meituan Dianping, meanwhile, sought to allay customers’ concerns about food safety by leaving behind a card listing temperatures of everyone involved in the cooking and (contactless) delivery process alongside the meal.
Michael McCool, Managing Director
Jason Ong, Director
Bringing world-class cuisine to the home
Confined at home and bereft of their beloved cafes, people unsurprisingly took to home cooking in a big way—but with a decidedly French twist. Upscale restaurants in Paris, Lyon, and Marseille came up with ingenious idea of offering contactless deliveries at home of restaurant-style dishes that could either be easily put together or reheated without any loss of flavor. Star chef Alain Ducasse launched Ducasse chez moi, or “Ducasse at home”, which included a package of 15 different ready-to-cook dishes, dessert included, delivered at home by bike. Adeline Grattard from the highly regarded YamT’Cha also delivered full meals once a week to Parisian neighbors.
Olivier Salomon, Managing Director
Emilie Dubuc, Vice President