Back to Normal?

by Claire Berrios – BIG Network Client Liaison, BIG – Buyers Intelligence Group

April 6, 2021

When will things go back to the way they were before Covid-19? It’s a question that everyone in the world is asking right now, especially those of us who operate within the retail landscape.

Vendors and retailers alike have had to undergo a major shift in business practices in light of the pandemic. Paused are the days of needing regular newness and frequent reorders. We have all had to try and maximize what we already have: inventory, relationships, even customers. We washed our hands, hunkered down, and tried to figure out what to do to weather this storm. And with all that pain and fear in the world, something quite strange happened. Whether intentionally or by accident, we started to work as a team.

Throughout the pandemic, retailers and vendors came together to keep business afloat on both sides of the supply chain. If the implication of that shift in dynamics sounds harsh, it definitely is. But so has our industry become in recent decades. The relationship between retailers and vendors had largely shifted into an opposing force – two equally-powerful objects pushing against each other in a desperate bid to maximize profits and satisfy management. Is that what it’s supposed to look like? A year ago, we might have all said, Why, yes! That’s what we are. That’s what we do. Why do you ask?

But a year into this pandemic, our new retail landscape has gently morphed this relationship, taking it bit by bit, phase by phase from a battle to a ballet. Retailers and vendors started to focus less on separate profit maximization and more on joint risk mitigation, which is a fancy way to say that we started to work for sustainable efficiency over growth: which is a fancy way of saying we did what we had to do, but we did it together. Though it took a devastating demonstration of economic frailty, we united as an industry, and there is good reason to hope that this show of solidarity isn’t just a flash in the pan of the status quo.

Even as the light at the end of the tunnel grows bigger and brighter, vendors and retailers can continue to support and bolster each other. We can come out of this trauma better than we went into it, with a greater focus on innovation and collaboration. But to do so, we as an industry need to commit to placing the health of our collective business above the strength of our individual balance sheet. Does that mean playing to lose? No. But it does mean making a commitment to feeding success and addressing challenges when they happen. Look at the business, look at it often, but most importantly, look at it together. Make plans together. Come up with solutions together. Improve the vitality of our industry together and watch as the incremental growth follows. Skip that step and watch as our partners quickly transform back into our opponents.

So yes, it’s understandable why everyone is wondering when we are going to get back to normal. But perhaps the better question is, do we really want to?