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Over the last twelve months, the COVID-19 pandemic has wreaked havoc on Australia's retail supply chains and business processes. Production operations, distribution, supply chains, corporate

Over the last twelve months, the COVID-19 pandemic has wreaked havoc on Australia's retail supply chains and business processes.

Production operations, distribution, supply chains, corporate relationships, and shopping behaviour have all been affected during this period. This poses significant difficulties. Will this be the case in the future? What will be the retailers' response?

One of the unexpected impacts has been on cash transactions.A Department of Health advice indicated that the coronavirus can spread through touching objects that have cough or sneeze droplets. This has prompted retailers operating offline to accept only contactless payment methods. According to the Commonwealth Bank, Australia is predicted to become the region's first cashless society by 2026. That prediction could be sooner than later.

More than 60 percent of all Australian businesses have now been directly affected by COVID-19, with retailers and restaurants with annual turnover of $1-5 million being the hardest hit. In mid-February, that number was only 15 per cent

The Department of Education, Skills and Employment has released a report surveying 250 businesses between March 27 and April 3. The highest impact to these businesses were a lower demand for goods and services, followed by cash flow issues, then change to business practices. These practices include developing new policies and procedures around staff and customer hygiene.Nearly a third of businesses have reduced staff. And of these, 67% planned to rehire all their existing staff and another 17% planned to rehire some of their existing staff.

Retailers without fast, robust and integrated business management systems are struggling. We have seen our major supermarket retailers cancel their online ordering processes. Not because of a rise in online traffic or a shortage of goods due to panic-shoppers, but simply because they didn't have the robotic or human capabilities to deliver the massive spike in demand. They couldn't fill shelves in-store, or complete click-and-collect deliveries online. Poor communication between their stock management, warehouses and customers also contributed to their poor response.

It's indeed a challenging retail environment. However, retail represents an opportunity for retailers to review their current business models.

Your response is required to the following four questions below:

  1. What are the pros and cons for bricks and mortar retailing in the light of the rapid growth of online sales post - COVID-19?
  2. How is consumer purchasing behaviour changing in light of the COVID-19 crisis?
  3. If you were a retailer today what new technology and logistics options would you be investigating and implementing to enhance your customers' experience?
  4. What lessons in channel strategy and channel design can retailers learn from this case study?

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