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Predicted Change in Retail
E-commerce: If there’s one thing every forecast shares, it’s that the market share for e-commerce will expand dramatically, perhaps even doubling. With more people doing more of their shopping online.
Cash: Businesses with the best balance sheets will ride out this crisis best. Companies with too much debt will not make it out of the pandemic, a painful lesson in natural selection—one that should not be lost on any retailer. Expect executives to look at their cash positions much more closely going forward.

Inventory: With most major retailers canceling new orders even if they were in process and refusing to accept incoming shipments, the supply chain will be overloaded with merchandise this summer and into the back half of the year. It will be a buyer’s market to be sure—but that won’t mean margins will hold up. No matter how strongly the consumer returns to the market, Holiday 2020 is going to be cutthroat.

Adoption of Tech: The combination of chatbots with AI and avatars creates an exceptional customer experience by targeting the right customer, at the right time, with the right message, and meets the customers’ needs faster and better. Live chat is essential to humanizing customers and minimizing their pain points, particularly because it enables real conversations at the time of need rather than later through email, particularly when they might be upset or looking to fix a problem.

Touchless POS:
Customer Relationship Overhaul: Using behavioral targeting, technologies can engage struggling or upset customers with proactive messaging before they become frustrated. Offering guidance before the customer has to seek help will ensure their browsing experience is seamless and completely comfortable. Successful brands retrained in-store staff for their online customer service team, given they are already well educated on product information and creating a personal customer connection. This unified offline and online agent team reduced training times and let brick-and-mortar sales teams transition easily into online sales, with no need for mass labor cuts. “Online sales associates” receive specialized training in product knowledge and emotional intelligence to deliver bespoke customer support and clientele online. The idea is to spend more time with customers instead of less in order to foster real connections with customers. Brands that encourage customer connection online will be rewarded with increased brand loyalty and higher basket values.

Home Delivery: A recent online poll conducted by RIS provided a snapshot of what retailers are navigating during the coronavirus health crisis, as well as insight into the tech trends they see ahead. The poll, conducted on the RIS website April 2-6, was intended to take the pulse of its retail audience and their current experiences. As for which retail technology they expect to receive the greatest investment in the post-coronavirus environment, home delivery somewhat unsurprisingly won out, with 38% of retailers citing it as their No. 1 choice. Curbside pickup and contactless payment tied for second, with 22% each, while just a limited number of respondents cited automation in warehouses (6%), live streaming video shopping (2%), computer vision (2%) and robotics in stores (2%).

IHL Group founder and President Greg Buzek expects the crisis to spur investments into omnichannel technologies. "It is our view that the trends to optimize click and collect and delivery will double their previous investment as a result of people to avoid crowds for the next 90 days," he wrote in blog post this week, adding that he expects "significant increases in remote tools, moves to decentralize the supply chain and AI/[machine learning], Forecasting technologies, and Analytics."

With stores closed, many workers have been furloughed, capital spending has been axed, orders have been canceled, rent deferred and extra financing has been secured or is in the works (if possible at all). That’s the mad-dash scramble for cash that has defined the last month for fashion. But for the better-positioned companies that can do anything beyond just struggle to survive, it’s time to think about the future. Chief executive officers stand atop companies that have closed their day-to-day businesses. With the hatches battened down, they are now becoming consumed with one overriding business imperative — coming out stronger.

Best Buy
Amid the coronavirus crisis, Best Buy will put roughly 51,000 domestic hourly store staffers, with the inclusion of almost all part-time employees, on temporary leave starting April 19. The electronics retailer is keeping about 82 percent of its full-time store and field staffers on its payroll, while furloughed staffers will keep their health benefits for at least three months, according to an announcement.

Corie Barry, the company’s chief executive, will forgo half of her base salary, and members of the board of directors will forgo half of their cash retainer fees. Executives who report directly to the CEO will take a 20 percent cut in base salary. These reductions will be effective through at least Sept. 1. In addition, select corporate staffers are having voluntarily reduced workweeks and pay in addition to voluntary furloughs.

Best Buy said it made the decision in the early days of the health crisis that its staffers would not have to work if they did not feel comfortable doing so, and that they should remain in their residences if they don’t feel well, while still receiving pay. It also noted that all field and retail staffers whose hours were removed when the company moved to curbside service would be paid for their usually scheduled hours up to April 18.

Barry said in the announcement, “The situation remains very fluid and there is still a great deal of uncertainty, particularly as it relates to [the] depth and duration of store closures and consumer confidence over time. We are taking the steps necessary to resume providing our customers [with] in-home services in the near future, keeping in mind our overriding priority on the safety of our employees and customers.”

The demand for home office equipment has escalated as more people are working from home, with Best Buy moving to curbside pickup only at all of its retail locations. eCommerce orders will be sent directly to consumers’ residences, but no in-home installations or repairs will take place. (s1)
On Thursday, March 19, Best Buy announced internally that work is now voluntary for two weeks and employees who decide to stay home would still be paid amid the coronavirus pandemic. The changes also apply to workers for Best Buy-owned Geek Squad, who will receive hazard pay if they decide to keep performing product installations inside customers' homes. 

Best Buy will direct staff willing to do so to resume work inside customers' homes as soon as Tuesday, April 21, according to an internal Best Buy email obtained by Motherboard. (s3)
"Starting as early as Tuesday, April 21, you will start seeing jobs on your boards as we're giving our customers the ability to select any one of the services we offer, including our doorstep delivery option," the email written by Damien Harmon, president of operations and services, addressed to in-home agents and their leaders, reads.

Richfield-based Best Buy first accessed its five-year revolving loan until Feb. 1 and on March 19 tapped the entire $1.25 billion. It also suspended its share repurchase program as it adjusted to stay-at-home orders affecting retail companies.

Businesses are increasingly understanding the impact of personal autonomy on employee happiness, with flexible working policies found to improve productivity, retention and worker wellbeing. 62% of businesses worldwide currently offer a flexible working policy, and this has already been predicted to grow from 2020 and beyond. American Express, AT&T, Best Buy, British Telecom and Dow Chemical report that remote workers are 40% more productive.

Best Buy CEO Corie Barry "The situation we are all facing as a result of the COVID-19 pandemic is truly unprecedented. As we previously communicated, we made the decision for the health and safety of our customers and employees to shift our stores to a temporary enhanced curbside service-only model starting March 22. At that time, we also suspended all in-home delivery, installation and repairs.” “We have retained approximately 70% of our sales1 compared to last year since moving to our enhanced curbside service model despite the fact that all our Domestic stores are closed to customer traffic and approximately 40 of them, particularly in the Northeast, have been completely closed to all business for at least 10 days at our discretion,” Barry continued. “This is a testament to the strength of our multi-channel capabilities – as our Domestic online sales are up over 250% and approximately 50% of these sales are from customers choosing to pick up their products at our stores since moving to our curbside service model.”

The company is taking the following actions:

Beginning April 19, the company is temporarily furloughing approximately 51,000 Domestic hourly store employees, including nearly all part-time employees. The company is retaining approximately 82% of its full-time store and field employees on its payroll, including the vast majority of In-Home Advisors and Geek Squad Agents. Furloughed employees will retain their health benefits at no cost to them for a minimum of three months.

Beginning April 19, some corporate employees are participating in voluntary reduced work weeks and resulting pay, as well as voluntary furloughs.

CEO Corie Barry will forego 50% of her base salary and the members of the Board of Directors will forego 50% of their cash retainer fees through at least September 1, 2020.

Company executives reporting directly to the CEO will take a 20% reduction in base salary through at least September 1, 2020.

Other actions include: Lowering merchandise receipts to match demand with a focus on essential items for our customers ; Extending payment terms in partnership with key merchandising vendors ; Reducing promotional and marketing spend aligned to temporary operating model ; Lowering capital spend to focus on mandatory maintenance or high-value strategic areas ; and Suspending 401(k) company matching program.

Best Buy has defined a dual goal to protect employees while serving customers who rely on the company for increasingly vital technology. The company has made clear that employees should only work when healthy, and that those who feel sick should stay at home, with pay. US stores have instituted “contactless” curbside service or free doorstep delivery.

Bed, Bath & Beyond
On March 23, 2020, the Company temporarily closed all its retail banner stores across the US and Canada, other than buybuy BABY and Harmon Face Values ("Harmon") stores, until April 3, 2020. Based on the latest guidance from federal, state and local government and health authorities, and in the interest of the health and safety of its customers and associates, Bed Bath & Beyond is extending the temporary closure of its retail stores until at least May 2, 2020.

The temporary closure relates to all retail banners across the US and Canada, other than its buybuy BABY and Harmon stores, which will continue to provide essential infant, health and personal care items in-store, subject to state and local regulations. In conjunction with the decision to extend the temporary store closures, Bed Bath & Beyond announced it would implement additional cost reductions, including a furlough of the majority of store associates and a portion of corporate associates until at least May 2, 2020.

As previously announced, the Company is providing impacted store associates with applicable pay and benefits until April 3, 2020. Corporate associates who have been impacted by today's announcement will be provided with pay and benefits through April 18, 2020. During the period in which furloughed associates are not paid, the Company will pay 100% of the cost of healthcare premiums for all these associates who currently participate in the Company's health plan, until further notice. Furloughed associates will also be able to apply for unemployment benefits, if eligible.

Mark Tritton, President & CEO, said, "The health and safety of our customers and associates remain our number one priority, as we do what we can to slow the spread of COVID-19. To help our communities through this crisis, we continue to provide essential infant, personal and health care items in-store, while we serve the rest of our loyal customers online, in their homes.

"This is a time of unprecedented disruption to our industry. We do not make these decisions lightly but, while the vast majority of our stores remain closed, we must now balance our ability to provide jobs and financial support for our associates in the short, medium and long-term, as well as prioritizing investments that will strengthen our business. We are therefore making the difficult decision today to place many of our associate team members on temporary leave, while our stores remain temporarily closed. "I want to thank all our associates for their service to the business and our loyal customers and we look forward to welcoming back all team members when our stores can safely re-open."

In recognition of the sacrifices being made by associates during this time, the Company will also temporarily reduce salaries by 30% across the executive team, including President and CEO, Mark Tritton. At the same time, the Chairman of the Board and all other independent directors will forgo 30% of their quarterly cash compensation.

To support plans to build long-term shareholder value, and further strengthen the Company's financial flexibility beyond its substantial cash position, Bed Bath & Beyond has taken or will take several further actions while managing this period of business disruption and uncertainty: Electing to draw down the remaining available funds ($236 million) from its revolving credit agreement, in an abundance of caution and as a proactive measure; Executing a substantial reduction in expenses, including managing to lower inventory levels and extending payment terms for goods and services; Prioritizing approximately $250 million in essential capital expenditures to drive strategic growth plans, including investments in digital and Buy Online Pick Up In Store (BOPIS); Deferring approximately $150 million of other planned capital expenditures; and Postponing, until further notice, its plans for share repurchases, dividends and debt reduction.

Transition to e-commerce: If there is a silver lining, I would say that given the monumental changes we've made to our business over the past four weeks, our ability to act decisively, partner up and move with speed and agility has been greatly enhanced. -- Tritton

Bed Bath & Beyond has found success in quickly transitioning its business to a digital-only selling model since closing its stores on April 2. Many of those locations have become makeshift fulfillment centers, and the entire enterprise has reorganized around e-commerce.

Digital sales jumped 90% through the first two weeks in April, and executives highlighted standout sales categories including bread machines, coffee makers, and vacuum cleaners. A curbside pickup offering is available at most of its buybuy BABY stores, and management expects to add the functionality to the Bed Bath & Beyond locations as soon as they reopen for regular business.
Bed Bath & Beyond rearranged all of its spending priorities in response to its new dramatically curtailed selling posture. While those moves mostly involved cuts such as furloughs, temporary salary reductions, and a pause on store remodels, the chain is still investing in growth. It plans to spend $250 million on high-impact strategic initiatives and is actively recruiting for key management positions.

The fluid demand trends make cash a priority today. "Now is the time to stay liquid," Tritton said, "until we have more clarity on the global situation surrounding COVID-19."

Levi's

“When we come out of hibernation and when we’re able to reopen doors, we don’t want to just restart the business, we want to reset the business,” said Chip Bergh, ceo of Levi Strauss & Co., in an interview with WWD last week. “We’re going to see competitors potentially go out of business. There are going to be great retail opportunities. Talent is going to be available during this period of time as the job market gets decimated, we’re going to be all over that,” the ceo said.