The coronavirus has prompted Office Max to shift their focus from in-store growth to online purchases.
For most retailers, the COVID-19 pandemic has disrupted normal operations of their retail stores, while also driving an influx of customers to e-commerce and online retail. The strategic play for these brands has been to re-focus their efforts on maintaining and growing their profitable online business, while leaning out their traditional brick-and-mortar stores. This is exactly what Office Max did when the company decided they will close all 14 of their New Zealand stores by the end of October (newshub.co.nz).
Based on the latest Insights data, this appears to be a smart play for the office supplies brand. Online retail revenue in New Zealand has been increasing over the past several weeks, and it’s currently up 139% YoY.
Though the coronavirus may have accelerated the shift from offline to online retail, it was an inevitable trend that had been in the making for some time, notably due to the advances in martech solutions that allow retail brands to more effectively engage customers and run an e-commerce business.
Now that big retailers like Office Max are prioritizing online shopping to better meet customer demand, expect medium and small retailers alike to follow suit.