What to expect for retail as the world reopens

Few industries were impacted more by COVID-19 and mandated shutdowns than the retail sector. Unable to visit stores, consumers turned to online shopping, curbside pickups and at-home delivery. Dropping in and browsing store shelves nearly became a thing of the past, and many retailers, especially "mom-and-pop" types, closed their doors for good.

But for retailers who were able to survive through the pandemic, there are signs of hope. Domestic tourism, for example, appears to be on the rise, a positive sign for all retailers, even ones who don't think of the tourism industry as an essential part of their business.

So what can you expect for retail as the world reopens? 

Hopeful signs for domestic tourism

While the tourist industry is still far from recovered, most experts are optimistic about the outlook for this sector. McKinsey and Company, an economic research group, predicts that the entire tourism industry will get back to 2019 (pre-pandemic) levels by 2024. However, economists suggest domestic tourism will likely recover even faster and fully recovered by the end of 2021 or early 2022. 

It appears that these predictions are becoming a reality. A report from the Associated Press says that while the number of airline travelers remains below 2019, it's starting to climb at a rapid pace. In a single day around early May, 1.67 million travelers were screened by the TSA. This is the largest single-day number since March 12 of 2020, when air travel nearly came to a halt.

Airline travel is not the only indication of a strengthening tourism industry. Hotel and vacation rental bookings are also on the rise, according to a Wall Street Journal report.

How will increases in domestic tourism impact retailers

If you are a retailer or retail employee, why should you care that massive airlines are booking more passengers and hotel chains (and small vacation rentals) are logging more guests? It's all connected through the concept known as "retail tourism."

Retail tourism, also known as "shopping tourism," refers to the connection between the tourist industry and the retail industry. Shopping, buying local products, and supporting local businesses are all part of the tourism experience, at least for many travelers. It's hard to quantify this connection between tourism and retail, but it's clear that when tourism improves, so does retail.

Therefore, it is reasonable to assume that retailers need to be ready for a new surge with increasing domestic travel. This means staffing up, stocking up on inventory, and creating a plan to keep workers and customers safe when they are inside your retail outlet.

How are shops and stores reopening?

Now that tourism is improving and signs point to continued progress, how is in-person retail preparing to reopen and take advantage of this recovery?

There are a variety of practices that, at this point, are becoming commonplace among retailers, restaurants, and virtually all other businesses. Obvious steps like mask requirements, limited in-store attendance (including the number of people and, if people are waiting, total time), and social distancing are all used.

But retailers can also utilize additional, unseen measures to keep customers and staff members safe without disrupting business. Back to Work Safely, an American Industrial Hygiene Association website, helps guide reopening for retailers. Among many tips, they suggest training store employees on how to communicate with customers, adding ventilation and fans throughout the shop, implementing enhanced sanitization and cleaning methods.

Overall, it appears that retailers are doing well and attracting customers. A mid-April report from the U.S. Department of Commerce and U.S. Census Bureau says that the March 2021 sales numbers were up 9.8% from the previous year, while total sales for January through March were up 14.3%. All good signs as we head into peak tourist months.