Has COVID-19 made the ‘shop local’ message more real for consumers?




With the coronavirus pandemic leading to the temporary and possibly permanent closure of scores of local restaurants and stores, the “shop local” movement appears to be getting a huge boost.
The uplift is most evident in the number of families committing to ordering carry-out meals to support local restaurants. Many restaurants are trying to survive only on curbside pickup. The local boost is also being seen by some owners of specialty running stores interviewed by RetailWire. They have likewise introduced curbside fulfillment while amplifying their e-commerce efforts since lockdown measures arrived.
“This pandemic moment is supercharging society’s shop local mindset and highlighting the critical importance of small businesses in our economic makeup,” said Matt Rosetti, co-owner of Brooklyn Running, which operates two stores in Brooklyn, NY and two in Eastern Pennsylvania.
Running shop owners see the local love continuing post-COVID-19.
Josh Levinson, the owner of Charm City Run, which has seven Maryland stores, believes that busy shoppers would often “choose the easiest path” prior to the coronavirus outbreak, and that could mean turning to other options other than local retailers. He doesn’t think that consumers will take local commerce for granted after seeing COVID-19’s impact on their communities.
“Everyone likes a local business and wants local businesses to survive,” said Mr. Levinson. “They inherently believe they are important to a community and give a community character.”
By all accounts, many local establishments won’t outlast the pandemic.
A survey of over 1,400 restaurant owners conducted between April 9 and April 13 by The James Beard Foundation found only one in five restaurant owners in cities that are shut down are certain that they will be able to sustain their businesses until normal operations resume. Assuming they can reopen, operating within social distancing guidelines and a slow return of customers are expected to significantly limit revenue opportunities for restaurants and stores in the months ahead.
A global survey from Ernst & Young found that 42 percent of consumers believe the way they shop will fundamentally change as a result of COVID-19, including 34 percent indicating they would pay more for local products.
- NEW SURVEY: Only 1 in 5 Restaurant Owners Are Certain They Can Survive the COVID-19 Crisis Despite Stimulus Assistance, Putting at Risk 11 Million Workers and $1 Trillion Industry Without Urgent Fixes to Paycheck Protection Program – Independent Restaurant Coalition
- Four consumer behavior trends emerge during the COVID-19 pandemic, the first EY Future Consumer Index finds – EY (Ernst & Young)/PRNewswire
- Yelp Economic Average Reveals Rapid Business Closures During COVID-19 in Q1 2020 – Yelp/Business Wire
DISCUSSION QUESTIONS: Is COVID-19 giving more license for local retailers to capitalize on their importance to communities? How should they best do so? Do you agree that messages around shopping local will continue to resonate after COVID-19 becomes more manageable?
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13 Comments on "Has COVID-19 made the ‘shop local’ message more real for consumers?"
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CEO and President, Cogent Creative Consulting
Shopping local is more important than ever to sustain local businesses. Independent business owners don’t usually have the cash reserves to weather months of limited revenues. In our community, residents are urging each other to shop local restaurants and shops (that have online ordering) on neighborhood sites, Facebook and Instagram to help them survive. I feel sorry for small business owners as this unforeseen tragedy has taken a toll on almost every business except grocery stores.
Chief Executive Officer, The TSi Company
Principal, SSR Retail LLC
Three months ago few people thought twice about ordering online, even though a local shop carried the item and offered some expert advice to go with it. As a result of the lockdown, local business awareness is at an all-time high, primarily through the closure of local restaurants and the impact it had on our usual habits. Whether this awareness lasts will depend largely on the efforts of local businesses to connect with customers post-pandemic and keep the relationship alive.
Director, Retail Market Insights, Aptos
Managing Partner Cambridge Retail Advisors
I am a board member of the Boston Main Streets Foundation and have seen first hand the devastation this pandemic has wrought. We are working to bring BOPIS and curbside pickup to the over 1,200 businesses in the city. Shopping local is vital to any community and frankly I don’t know how we would survive this disaster without them. Even after we open back up these businesses will only be allowed 50 percent of their capacity. Innovation in social media and marketing coupled with some basic e-commerce technology can allow them to survive but they need to move quickly to shift to a different model.
Managing Director, GlobalData
We have been surveying consumers every week during this crisis and one of the things we ask them is about their values and what’s important to them. Community is one of the factors that has risen strongly, most likely because people miss being connected to others. I see this as a major advantage for local and independent retailers – many of which have been doing great work to help others during this crisis. I hope that these attitudes persist once the crisis is over and that local retail undergoes a renaissance.
Director of Retail Marketing, enVista
COVID-19 has shown a spotlight on local businesses as they are feeling some of the biggest impacts. Their struggles directly affect the community in which they live and work so they should emphasize their importance within the community. Local business owners are your neighbors and friends and your kids’ sports team’s sponsors! Shopping local has been a growing trend over the last few years, the current situation has just increased the trend’s growth and importance.
Managing Partner, Retail Consulting Partners (RCP)
Local retailers have always been important to communities and the recent pandemic has heightened both the positive and negative impacts such a crisis can have on these businesses. It’s been tremendous to see the surge in hyperlocal shopping in my own city as stay-at-homers look to support these merchants; however, it’s equally as disheartening to see closed signs and hear tales from some owners of their inability to survive the downturn. Local retailers are an essential part of the community — the money spent there helps to pay local workers, which in turn puts money back into local neighborhoods and other local businesses. Even though I do expect the shopping local sentiment to permeate in the short-term as stay-at-home orders are lifted, most often shoppers will eventually regress to their pre-pandemic behavior. However, the benefits being seen due to supporting our communities should have a lasting and real impact and will hopefully allow as many retailers as possible to keep their doors open once this storm is weathered.
Principal, KIZER & BENDER Speaking
Retail Transformation Thought Leader
Chairman Emeritus, Relex Solutions
Global Retail & CPG Sales Strategist, IBM
I think this is one of the huge positive aspects of the crazy crisis. I truly believe that local businesses will continue to enjoy increased loyalty far beyond the pandemic.
CFO, Weisner Steel
To some extent, but I think the bigger issue is to what extent, if any, will people increase their total spending: so many of the “local” businesses that are hurting right now – restaurants, barbers, etc. – were never logically part of the ‘shop local’ movement b/c there were no alternatives…no one goes to a fulfillment center for dinner or a haircut. So when “afterward” finally comes, will people eat out more or get a trim more to make up for the revenue lost. Some might, some will want to, but be unable to do so b/c of their own situations..and the latter of course is the stuff of which Depressions are made.