Department store and shopping mall operators should accelerate their adoption of new sales models in the face of challenges brought by the COVID-19 outbreak, an expert said on Sunday.
Champion Wang (王建彬), vice president of the think tank Commerce Development Research Institute, said that COVID-19 has fundamentally changed the way department stores and shopping malls operate in Taiwan.
That has been especially true after Taiwan imposed a nationwide level 3 COVID-19 alert on May 19, when case numbers surged. The alert led to restrictions on gatherings, barred on-site dining and prompted government warnings about only going out if necessary.
Photo: Fang Pin-chao, Taipei Times
Retail sales grew 18.3 percent year-on-year in April, but only 2.8 percent in May, government statistics showed.
Moreover, food and beverage sales fell 19.1 percent in May from a year earlier.
Department stores and shopping malls were among the retail spaces hardest hit by the COVID-19 restrictions.
Having shortened their business hours or temporarily closed to contain the spread of the disease after the alert was issued, their sales plunged 28.3 percent year-on-year in May.
The nationwide level 3 alert is provisionally set to last until Monday next week.
Local businesses need to do their best to transition to new sales models to meet the challenges brought by the pandemic, even after the level 3 alert is lifted, Wang said.
One of the major changes needed is for department stores to rearrange their spaces so that customers can maintain social distancing, Wang said.
More importantly, they need to develop their digital channels more quickly, which some leading shopping malls and department stores have been doing for some time, he added.
For instance, Global Mall (環球購物中心), one of the largest chain shopping malls with eight outlets, has been pitching its products online in live-streaming sessions on its Facebook page since last year to reach more potential customers, he said.
It is also planning to work closer with Internet influencers to increase its reach, he said.
Taipei 101 Mall, one of the nation’s top international shopping destinations, is also adapting to the new trend by holding its annual jewelry and watch exhibition virtually for the first time this year, Wang said.
Customers can make appointments online to visit the mall during a specific time frame to be able to shop without having contact with other customers, Taipei 101 Mall said.
Another necessary change is for department stores and malls to reallocate their workforce, especially for food and beverage services, Wang said.
For example, more workers should be allocated to making deliveries as indoor dining is banned, he said, adding that food and beverage businesses should come up with more appealing takeout menus.
Retailers should also speed up their membership marketing, which allows them to send tailored and precisely targeted messages and personalized discounts to boost sales, Wang said.
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