Contactless shopping experiences through e-commerce purchasing methods, such as curbside pickup options, have become the norm during the coronavirus pandemic. Although these trends have emerged as a result of the pandemic, Walmart (NYSE: WMT) CEO Doug McMillon believes these trends are likely to define a "new normal" of the retail industry.
"As this crisis created the need for social distancing and required people to stay at home, customers embraced the pickup and delivery experience even more," McMillon said. "My feeling is that once this crisis is more under control, people will have seen the benefits of that service and will likely continue to use it. It will become part of the 'new normal.'"
According to McMillon, retailers like Walmart were already seeing an increase in the popularity of services like home delivery and online pickup. Therefore, McMillon seems to suggest that the coronavirus crisis may have solidified or substantiated this trend rather than having created it. "This is just speeding up the significant change the retail industry was already undergoing," he said.
Furthermore, Walmart is expecting an increase in the amount of online orders, curbside pickup, and in-store pickup during the upcoming holiday season. As a result, the retail giant is training employees in anticipation of integrating more flexible duties based on changing customer needs.
While online shopping trends have seen a surge, one that McMillon doesn't believe will go away overnight, e-commerce isn't the only area seeing economic gains during the pandemic.
Big-box stores in general have seen an increase in performance over the past year, whereas mall retailers have seen a decline. In addition to Walmart, stores experiencing higher performance include Target (NYSE: TGT), Best Buy (BBY), Home Depot (NYSE: HD), and Lowe's (NYSE: LOW).
A big part of the success of stores like Walmart and Target can be attributed to their role as a "one-stop shop," effectively replacing the older trend of customers visiting a mall as a one-stop location where multiple shopping needs were met by visiting several stores in one visit.