Here’s how big box retailers like Amazon, Walmart, and Target survived the pandemic

28 April 2022 By

The COVID-19 pandemic had an unprecedented impact on all businesses, especially the retail sector. However, big businesses quickly adapted to the new normal and worked out a strategic plan to thrive during this difficult time.

The strategies they followed to survive the pandemic are sure to help you and other brands learn and implement them so that you too can scale your business to new heights.

STRATEGIES TO SUCCESS

In an effort to come up with a success strategy, these companies decided to observe the post-pandemic changes in consumer behaviour and consumer expectation — and adopted the following unique approaches to drive sales to their businesses.

  1. Identified Changes in Customer Loyalty

The retail giants were quick to identify that people no longer relied on their go to stores for essentials — instead, they would purchase products wherever and whenever products were available. This led them to stock up their shelves accordingly — meeting every consumer need.

  • Expanded Fulfillment Options

Amazon, Walmart, and Target were already industry leaders in fulfilment options, offering both BOPIS (buy online pick up in store) and curbside. But that didn’t stop them from pushing the boundaries and expanding further during the pandemic, using the following tactics.

  • Amazon experienced a surge of orders and initially struggled to hit their 2-day delivery window, causing them to pause shipping of non-essential items for a while. However, by thinking quick on their feet and making several adjustments, they managed to bring in more than 175,000 new warehouses and delivery workers — getting right back on track.
  • Target launched ‘’Drive Up’’ on their app – a safe and hassle-free shopping experience, where consumers could place their orders using the app, then simply drive up to the store and have their items delivered straight to their car. They also offered a ‘’same day delivery’’ service, allowing new subscribers to trial the service for free (up to 4 weeks), while others were offered the option to pay a one-time delivery fee.
  • Walmart hired thousands of personal shoppers to fulfill BOPIS and curbside orders quickly and accurately. They also launched “Express Delivery” – a delivery program that delivered goods in two hours or less.
  • Adjusted Their Store Layouts

Walmart and Target built temporary stations to house their curbside and BOPIS orders. They also expanded their warehouses and minimized display and floor spaces in some of their store locations.

  • Improved Omnichannel Experiences

Ever since the pandemic, the consumer expectation for a retailor to provide omnichannel services has become inevitable — especially with more and more people shopping online. So, these retailers not only rose to the task as aforementioned, but also enhanced the omnichannel experience for all their consumers.

DATA EVIDENCE OF MASSIVE SALES

The following data show clear evidence that big-box retailers have not just survived the pandemic, but have experienced a massive growth in their businesses.

  • Before the pandemic, just 6% of the retailers in the 2020 Digital Commerce 360 Top 1000 offered the curbside fulfillment option — now it’s 50%.
  • Top 1000 offered buy online pick up in store (BOPIS) has increased by 68% as of February 2021.
  • Walmart and Target reported a hike in sales in the second quarter of 2020. Target experienced their largest percentage increase in the company’s history, and Walmart’s eCommerce sales doubled.
  • Amazon’s eCommerce sales doubled in May 2020 — allowing them to now corner 38% of the eCommerce market.
  • Retailers who offered online shopping options saw a drastic growth during the pandemic. From 37% market penetration to over 80% during the peak of COVID. However, now it has come down to 48%. 

Overall, the ultimate key to success in any business is being flexible and having the right strategy. It doesn’t matter if you’re planning to open a brick-and-mortar store tomorrow or are just starting a new venture online. Having a solid plan in place is essential to succeeding. Remember that your strategy can change and adjust as needed, but the key is always to have one in place to take your business forward.

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