H1N1 Deepens Retail Woes
What next... locusts? That could very well be the sentiment of the world’s beleaguered retailers as they head into the holiday shopping season. With the economy barely crawling toward recovery, the H1N1 pandemic compounds
what is already projected to be an underwhelming shopper turnout.
With the number of reported cases of both seasonal flu and H1N1 climbing it’s hard to imagine there won’t be at least some negative impact at retail. In fact a recent study indicates that one in five consumers will sit out the traditionally busy shopping days entirely, to avoid getting sick. One in three would-be shoppers say they're avoiding crowded places in general. And with one of the highest risk age groups for the virus being children aged 6 months to 5 years, many parents may forgo the annual pilgrimage to the mall with the kids in tow.
A potential boom in online sales
Despite some experts suggesting the pandemic has peaked, E-commerce could get a lift as consumers nonetheless seek to avoid unnecessary human contact. As we near the heart of the shopping season, expect to see more retailers enticing consumers with online specials in an effort to recoup store shortfalls.
“Staff” Infection
Beyond the obvious impact to consumer traffic, staffing shortages resulting from the virus will make matters even worse. Businesses are bracing for unusually high levels of absenteeism and with staffing levels already razor-thin, retailers will be scrambling to keep their stores operating, much less meeting sales targets.
With the world stumbling clumsily out of recession, H1N1 could prove as much an economic danger as it is a health emergency.
