Tracking The Pandemic Recovery Of Retail And Hospitality Sectors
The Retail IndustryNow that we seem to finally be closing in on the end of the COVID-19 pandemic, 2022 is likely to continue to see overall growth in the retail sector, but not without its share of challenges. Many industries are still not caught up with supply chain issues. 2021 brought new consumer demand surges while manufacturing capacities couldn’t keep pace. Nevertheless, the supply chain congestion has begun to wane and even normalized in some industries while others are still backed up. This is due to geographical circumstances, issues with unloading shipping containers in ports, and a shortage of truck drivers. Many experts believe that 2022 will be the year of the “retail reset,” while others do not think that an utterly standard supply chain will fully return this year. The pandemic has changed consumer demands as their daily routines change. For example, more people started working from home, which meant spending more on comfortable leisurewear and home technologies and less on business attire. And while the remote work economy is expected to continue, so is the online shopping boom. There is also a combination of less financial assistance and rising inflation that is hurting spending. For example, retail survived the worst of the pandemic because consumers were receiving help such as federal stimulus money and unemployment support. But that aid has been pulled back at the same time that inflation is up. This means less money for discretionary retail spending as consumers are unsure of what the future holds. With all of these changes, retailers are still unsure when making commitments. As a result, inventory remains a difficult path to navigate. Many companies are turning to new technology solutions to help them better manage inventory in real-time. As a result, physical stores may become smaller, offering fewer options and quantities.