The Impact of COVID-19 on Outdoor Retail

This is the second in a pair of articles looking at the potential impact of COVID-19 on the Outdoor Industry based upon the results of surveying over 44,000 Moosejaw.com customers April 28 – May 11, 2020.

The first part of Moosejaw’s COVID-19 Impact Survey results showed that despite the unprecedented level of upheaval caused by the coronavirus crisis, the overall expected impact on outdoor activity appears relatively low. Certainly, some people that are more concerned or at higher risk that will stay away, but in many cases they are offset by others that find the outdoors more appealing than other activities that are more expensive or offer less chance of social distancing.

But what about the impact on the retailers that sell the products for those outdoor activities?

Key Findings

• We are seeing a significant shift away from malls to online retailers of all sizes.
• Small specialty physical stores see the most polarized results with 31% saying more versus 30% less.
• New retail offerings like BOPIS (Buy Online Pickup In Store) and curbside delivery are key to drawing consumers back to physical retail.

Impact on shopping frequency at different types of retailers

The survey question, “Once shops reopen, how will it change how frequently you shop at different types of retailers?” showed major shifts in preference away from shopping malls and towards specialty online retailers. 

[Note: For results below, “more” = More+Way More and “less” = Less+Way Less]

Respondents show a notable shift to online specialty retailers with 42% saying they plan to shop more online versus just 10% saying they will shop less online. It should be noted that the survey audience of shoppers on Moosejaw.com is likely already predisposed to online shopping; however, respondents new to Moosejaw.com show only a slightly lower shift of 39% more online versus 12% less. Large online retail also benefits with 28% planning to shop more. Where are they shifting from? The biggest loser is shopping malls with a staggering 61% of respondents saying they plan to shop less versus only 8% saying more. Large physical retail stores also look to suffer losses with 53% saying they plan to shop less versus 12% saying more.

Smaller specialty physical stores are the most polarized retail segment with 31% of respondents saying they plan to shop more versus 30% less. We believe this reflects consumers’ desire to support their local small retailers against the desire for more social distancing offered by online retailers.

These results give an overall picture, but how are different constituents thinking about retail? The following table shows the weighted average response by gender, employment status, age, and region (1=Way Less, 2=Less, 3=No Change, 4=More, 5=Way More).

Overall, the results are relatively consistent across the different groups. The main differences are that respondents aged 60+ and those in more affected states are less likely to visit physical retail, while respondents aged 18-24 and those in less affected states are more likely to visit physical retail. Even within these differences, the overall shifts are the same, i.e., away from malls and large physical stores to online retailers of all sizes.

Making people feel more comfortable shopping at a physical store

Understanding that many people may be slow to return to physical retail, we asked what things would make them more comfortable shopping at a physical retail store.

The results show that “Buy online, pick-up in store” or BOPIS has gone from a nice-to-have to a critical component for all physical retailers. It is notable that BOPIS is even ahead of curbside contactless pick-up and the social distancing it brings, indicating that consumers prefer the convenience of browsing and shopping the store’s inventory online to calling, emailing or some other form of placing an order. BOPIS is the highest rated offering for every group except those aged over 60 that rate “strictly enforced social distancing” and “shop staff wearing masks and gloves” first and second respectively. The difference is likely driven by concerns of increased risk in this age group.

The high rating for “overall store cleanliness and appearance” indicates that customers will be observing to see if stores appear to be following cleaning guidelines. While it may be hard to tell if a store was recently sanitized, customers may take clues from overall store condition or even the level of lighting and fixture spacing.

The shop by appointment model being pursued by some retailers does not appear to have much appeal to respondents, consistently rated the least favored practice across every group. Apparently, customers want to shop when they want to shop and not have to plan ahead and schedule appointments.

Other differences across the different groups include:

• Female respondents are more interested in curbside pick-up and social distancing while male respondents are more interested in “ease of access and parking”.
• Respondents who are unemployed or furloughed are more interested in social distancing and shop staff wearing masks and gloves, possibly because many of those displaced by the crisis came from retail or restaurants resulting in more empathy for retail workers and their safety. Unfortunately, we did not ask about customers wearing masks, but based on outside feedback we believe that this group would have more strongly supported this measure.
• Respondents aged 18-24 are by far the least concerned with social distancing, followed by male respondents.
• Similar to respondents aged 60+, those in more affected states are more interested in social distancing and shop staff wearing masks and gloves.

The future of outdoor retail

The survey results clearly point to a different future for outdoor retail where online retail grows at the expense of physical retail. The winners will be those that embrace new technology and ways of shopping while continuing to leverage the unique benefits of physical retail – the human element, the ability to touch and try on merchandise – in a new world of social distancing and heightened hygiene.