The effects of COVID-19 on North American business are creating supply chain challenges into the second half of 2020. Organizations’ ability to respond to these challenges will determine strategies required in 2021 to maintain profitable performance. Although some businesses relying on high contact and large crowds will succumb to bankruptcy, others have an opportunity to capitalize on new growth opportunities.
As the global pandemic confined consumers to their homes, record volumes of online sales motivated retailers to adjust online fulfillment strategies and capitalize on emerging demands for food, health and safety necessities, home office/school supplies – even exercise equipment and entertainment products.
In 2018, U.S. consumers spent $517.6 billion online, up 15% over the prior year. E-commerce represented 51.9% of all retail sales growth that year, with much of the profits going to Amazon, an e-tailing giant that many companies are hotly pursuing in an effort to grab a larger piece of the ever-growing e-commerce pie.