Corona-conomy forces Levi's and other retailers to innovate (or perish)
Haven't felt a jean waistband since March... Levi's sales plunged 62% last quarter because you've been wearing the same sweats for five months. As brick-and-mortar stores shuttered and social outings evaporated, the jean icon's sales went the way of the elephant pant leg. That forced Levi's to accelerate its consumer strategy shift. Our 2 highlights:
- Same-day delivery: Levi's partnered with Uber to drive your high-waisted shorts to your door, just in time for that last-minute picnic. Curbside pickup is also an option.
- Fancy ecommerce: Levi's new virtual concierge program lets you have a one-on-one chat with a store associate (from your couch).
It's all about controlling "the experience"... Since Levi's can't control other stores' closures, it's focusing on selling directly through its own stores. That allows it to foster a more premium brand experience (and price up its products).
- 2020 retail bankruptcies will likely be the highest in a decade: Lord & Taylor is the latest to go bankrupt this year, joining Neiman Marcus, J. Crew, and 40 others.
- "Experiential Retail" is key to drawing back customers, both virtually and in-store. A great example: Burberry's new "social retail" store, which integrates social media and gaming with your shopping experience.
In an omnichannel world, physical stores are key... An omnichannel sales strategy means seamlessly blending the digital and physical worlds. And Levi's is all about that omnichannel life — that's why its CEO thinks physical stores are still "critical" (Levi’s is opening 70 new ones this year). Levi's is also using its brick-and-mortar shops to quickly send products to consumers — 30% of its ecommerce shipments in May came from stores, not big distribution centers.