It’s spreading globally and impacting locally.
From a running shoe store in Crozet to a decades-old family car dealership in Albemarle County, plus a plethora of area restaurants and retail chains, the global pandemic is aggravating an already challenging marketplace.
For established companies, it’s likely to get worse unless new business models are considered and adapted, a local expert warns.
“A lot of institutions, like J.C. Penney, are closing and so are a lot of established businesses, and it’s easy to see that and think, ‘Oh, we’re screwed,’ but that’s not necessarily true,” said Grant Gamble, an Earlysville-based business consultant who has worked with several area companies, including ACAC Fitness & Wellness Centers and Snowing in Space.
Gamble is also the author of “The Affinity Principle,” a new book describing his mindful leadership principles.
“The pandemic really upended the restaurant industry, which seemed to be doing well, and no one expected the lockdown to come,” he said. “But for retail, I think COVID-19 has simply accelerated some of the issues that would have come into play eventually.”
Central Virginia has seen its share of business closures. COVID-19 restrictions shuttered most restaurants for everything but take-out or delivery, and that took out established area restaurants like the Downtown Grille, Wild Wings Café and Jason’s Deli.
Zinburger, Bashir’s Taverna and the Applebee’s on U.S. 29 are among many that have followed suit.
Last month, owners of the Crozet Running Shop announced the store would close as of Sept. 30.
“This has been a difficult year for everyone, and after much soul searching on the best path forward for our family, we were led to this very tough decision to close the store,” owners John and Michelle Andersen wrote on the store’s Facebook page.
“The hardest part of this decision is leaving the incredible community that we (you and us) have created. There are going to be some tears for sure as we are reminded of all of the incredible people we have met, the relationships we have made, and the outdoor experiences we have had,” they wrote.
Last week, Edgecomb Auto owners announced the local repair shop and car sales company that has been in business since 1979 would shut its doors permanently as of Sept. 30.
“It is with the heaviest of hearts that I share that our family business is closing,” wrote Nikki Edgecomb on her Facebook page. “After 41 years, we just couldn’t quite weather COVID-19. Thanks to all of our loyal customers who have helped sustain us over the years. We’ll truly miss you.”
“We want to thank all of our customers for supporting us as we pioneered a business model based on fair and friendly service, in an industry not always known for those qualities,” owners posted on the company’s social media accounts. “We’ll miss greeting you at ‘the shop’, but we look forward to seeing you out and about in the Charlottesville community.”
Gamble said retailers and businesses that have lasted decades with a traditional business model and storefront presence may see the most negative impact from pandemic-related changes.
“Those businesses may be well-run, but if they’re entrenched in the way they operate, they’re going to find it difficult to adapt to change,” Gamble said. “It’s not that they don’t want to change, it’s that they simply don’t know how. They’re invested in doing business in a certain way.”
Gamble said change is going to be permanent and recurring.
“Change that would have taken place over two years just 20 year ago can take place in two days now. There is so much change and innovation going on today that companies that changed their products or operations every two or three years need to look at changing every two or three months,” he said.
He points to employees successfully working remotely from home making office space superfluous as one example of change.
“Some businesses are actually flourishing in this environment while others were reluctant to change because they didn’t want to lose what they saw as the company culture,” he said. “There’s a lot of opportunity during this, if you look for it.”
COVID-19 restrictions have impacted not just businesses but customers. According to National Retail Federation studies, the last bastion of traditional storefront shopping has even changed its behavior.
The federation study completed in July shows baby boomers, more susceptible to ill effects of the virus and forced to stay home, have moved more of their shopping online.
The study shows 45% of boomers are buying online now.
“Certain categories have seen more of a shift to online, especially items that can help relieve boredom during a lockdown,” the study states. “Pet supplies, toys and books and other media are the products where more boomers have shifted their purchasing habits the most, with more buying mostly or entirely online as a direct result of COVID-19.”
But the study shows that 58% of boomers who buy online are having the products shipped to a local store for pick-up, the majority of whom doing so to avoid shipping fees.
“There was a time when a five-year or 10-year business plan was expected, but now you can’t have a 12-month business plan,” he said. “Now, you need to review your plan every three to six months or more often. You can’t think of where you’re going to be in 10 years.”
Gamble said startup companies and those that have a variety of products likely will be able to survive the tide of changing shopping habits because they can respond quicker to changes. But he warned that companies need to respond to consumers’ concerns, as well as their needs.
“The business world will be reimagined. It will not return to the same place. It has to be, and will be, reimagined because [COVID-19] is not just going to go away,” Gamble said. “One of the core values of any business now has to be safety, for employees and customers. People want to know that you take their safety seriously, even if you think this is all a hoax.”
Gamble said businesses need to keep a close eye on their industry and their consumer base.
“Where are their customers coming from? What products are doing well? What will likely do well in the short term? They need to revisit their plans at least once a month and maybe as often as once a week. Watching trends is critical right now,” he said.
“If you take your economic temperature today, it may be cold. Check it tomorrow, it may be hot,” Gamble said. “The idea is to check in, watch the trends and adapt to the trends. Don’t get caught up in the way you have always done things.”
Source: www.dailyprogress.com