Coronavirus: Retailers scramble to prepare for operational disruption

This week, the government’s chief medical officer Professor Chris Whitty told Radio 4’s Today programme that it is much more likely than not that we are going to deal with a significant coronavirus epidemic. “How big it is I think is currently still pretty uncertain, but that there will be an epidemic is now highly likely,” he said.

As the number of confirmed cases enters triple figures, a variety of businesses, including Twitter, have issued a global mandate to staff to work from home to minimise the spread of infection, while HSBC evacuated its research department in London’s Canary Wharf this week after a member of staff tested positive.

Against such a backdrop, what measures is the retail industry taking to mitigate the impact of a mass outbreak among staff and shoppers? And how prepared are retailers to weather the storm?

Flexible working

One preventative measure being considered or deployed is asking head-office staff to work remotely – and that could put considerable strain on many UK retailers’ operations.

One industry adviser estimates that approximately a third of UK retailers would not have the infrastructure necessary to enable staff to work from home in any capacity, due to the majority of their head-office staff working on desktop computers and non-cloud-based operating systems.

He believes that only a third have the capabilities in place for people to work remotely without significant disruption to day-to-day operations and productivity.

“One industry adviser estimates that approximately a third of UK retailers would not have the infrastructure necessary to enable staff to work from home in any capacity”

The boss of one home and furniture chain told Retail Week that, although the majority of its head-office staff had the equipment necessary to work from home, he expected it would take around three weeks to recover required productivity levels if evacuating head office proved to be a necessary measure.

Another value retail boss said that around 80% of its headquarters staff would be able to work from home and that no significant disruption was likely if it were necessary.

Retail Week understands that one fashion retailer was planning a trial run of HQ staff working from home to ensure its technical infrastructure was robust enough to ensure there were no outages or productivity issues.

Communications and precautionary measures

A survey by Retail Economics found that 93% of retailers have issued guidance to staff about coronavirus, although one retail boss admitted his business had only begun its contingency planning this week.

The industry adviser said he did not expect any retailer to have “a fully articulated plan in relation to a pandemic”.

“One retail chief said that all his delivery drivers had been issued with gloves and hand sanitisers and had been instructed to clean between each delivery”

All the retailers Retail Week spoke to said they were following guidance issued by Public Health England.

One retail chief said that all his delivery drivers had been issued with gloves and hand sanitisers and had been instructed to clean between each delivery, as well as leaving deliveries of even large items outside the home of customers who have been self-isolating.

He said the business was considering cancelling a company-wide work conference set to take place later this month, and that executives would travel to regional teams to provide company updates instead.

The leader of one food and beverage retailer also said it was likely to postpone a store managers’ conference scheduled for later this month.

The chief executive of one value chain said store staff had been given hand sanitisers and cleaning equipment, and were cleaning the tills thoroughly throughout the day, as well as the stores at closing time to reduce the risk of infection.

He also said all staff across its distribution network had access to hand sanitiser, soap and hot water, and had been instructed to wash their hands regularly.

The British Retail Consortium’s director of food and sustainability Andrew Opie has said that most of its members ”are more than happy for the majority of online deliveries to be delivered on doorsteps when customers have suggested that they are self-isolating”.

In the event of an epidemic

One of the key issues facing retailers is how to mitigate the impact on productivity and product availability should an outbreak occur in, or near, stores or distribution centres.

One retail boss likened that scenario to a fire and said capacity would be shifted to nearby stores and warehouses to minimise disruption.

However, another director said it did not have sufficient staff to commit to normal opening hours in the event of a serious outbreak, so would consider closing stores on Mondays and Tuesdays if locations were hit.

“Retail Economics found that 45% of retailers are already experiencing a negative impact on sales as a result of the outbreak of the virus”

One retailer said a key issue would be the decline in store footfall in the event of coronavirus spreading widely, and online sales would need to rise 50% to make up for the shortfall in revenue if stores were impacted.

That is a common concern for retailers. Retail Economics found that 45% of retailers are already experiencing a negative impact on sales as a result of the outbreak of the virus.

However, Opie says: “Retailers have seen an uptick in online deliveries and are taking all necessary steps to meet this rise in demand so that all consumers continue to have access to the products they need.”

All the retailers Retail Week spoke to said any store or distribution centre where an outbreak occurred would be evacuated and undergo a sanitisation process before reopening.

There may be no epidemic yet, but in that event, retailers are acting fast to try to minimise disruption to their operations and customers.