COVID-19 Soundbite: Pent Up Demand


Date April 3, 2020

Episode Summary:

In retail, we don’t see ecommerce fully filling the void. In fact, non-essential ecommerce will decline as consumers sit on the sidelines. However, before store closure mandates kick in or when they are lifted, shuttered retail stores will send demand to the remaining open retail stores. Supply chain shortages have already started to shift to supply chain excess as retailers cancel orders and China comes back online. Even in an extended social distancing timeframe, some consumers will eventually revert back to shopping non-essential retail as impatience with stay-at-home efforts leads to self-rationalizing non-essential shopping using safe approaches adopted for shopping essentials. Pent up demand – minus stockpiling – will help retail recover for non-seasonal goods.

Host: Ken Frieze, CEO