Online grocery stores will retain their momentum over other categories of goods until at least 2023, when non-food retailing will start to accelerate again, according to the Economist Intelligence Unit.
To address the continued boom, online marketplaces and multi-brand retailers need to explore ways to widen their seller networks after the pandemic.
It said, “The popularity of online shopping, wider adoption of digital payments and…use of social media for marketing have given…entrepreneurs the option to trade from home, without having to [rent] stores or office spaces.”
But there will be losers in the transition to online retailing. The franchise business model will face challenges in the new retail landscape especially smaller ones, while bigger franchises will also see their businesses shrink.
It also affects employment as lockdowns and declining consumer demand for non-essentials resulted in furloughs and lay-offs across the retail sector.