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The global retail industry is likely to face severe challenges post the COVID-19 pandemic. A leading economist has warned that the sector will have to adapt and deal with rising costs or close shop.
Deloitte’s Chief Economist, Dr Ira Kalish, has also warned that a second wave of the pandemic could potentially disrupt manufacturing which could have consequences for the sector.
Addressing representatives of international businesses in the sector, Kalish says, “Retailers which are reopening face the problem of having to maintain social distancing of their employees and their customers and that is a big issue for stores that have been traditionally crowded and certainly a big issue in the restaurant industry. Retailers, having to deal with liability issues, and there is going to be a lot of discussion about this in the insurance industry and then there is the added cost of testing and cleaning. They will have to be clean to ensure that employees and customers are not exposed to the virus and that means employing more people at a time when there is reduced revenue.”
