Half of Consumers Expect Reopening Delayed Until 2022 or Later
Concern over COVID-19 jumped in August as the Delta variant spread. Nearly half (46%) of consumers say that they are highly concerned about COVID, up 10 percentage points from July 2021. More than a quarter (26%) rate their concern a 10/10 — a level not seen since March 2021 (25% of consumers).
As the delta strain of the virus spreads and immunization rates in many areas fall, troubling uncertainty is gaining intensity after decreasing this year. This is based on a study released from Numerator.
New COVID-19 cases were averaging around 100,000 per day when Wells Fargo economists released their August economic forecast report, but had increased to more than 150,000 per day by the time they released their September report last week.
“As a result, Americans have become more cautious in general,” they said.
President Joe Biden made an extraordinary effort last week to require large firms to vaccinate their staff or have any unvaccinated employees provide a negative test at least weekly to address the disease’s resurgent potency and hazards to health, life, and the economy.
Meanwhile, many customers are reverting to their cautious pandemic habits. According to Berkeley Research Group, nearly 60% of people plan to use a combination of online and in-person shopping for the holidays, while only 13% plan to purchase exclusively in physical stores and 24% plan to shop entirely online.
Tourism and office job decreases, which affect retail, are also soaring again as a result of the pandemic. From July to August, Numerator discovered that travelers’ satisfaction with leisure travel dropped seven percentage points. According to the National Association of Real Estate Investment Trusts, the number of employees telecommuting as a result of COVID-19 increased by 400,000 in August, the first increase in work-from-home since late last year.
The reversal is taking place as retailers prepare for the holiday season, which can make or break many people’s year. According to Forrester Principal Analyst Brendan Witcher, who spoke via phone, services like curbside pickup are likely to reclaim their importance.
The supply side is also feeling the effects of the delta strain, with some merchants reporting higher freight prices and inventory shortages. Retailers should be prepared to sell a lot of gift cards in addition to providing omnichannel services.
“We don’t anticipate these issues easing up before the holidays,” Darren Morrison, a managing director at Berkeley Research Group, said in a statement. “Retailers will need to be innovative in how they attract buyers given the strain on popular items.”
