The real estate industry lives and dies by the mantra “location, location, location.”
The same could be same for retail, where foot traffic is key, where wandering customers and impulse buys can propel the top line. And if the reverse is true, if traffic does not materialize, or people look but don’t buy, well, retailers suffer.
Added to the list of those hurt by the mounting toll of the coronavirus: airport retail shops.
As noted by The Wall Street Journal, duty-free shops and other locations have been impacted by a steep falloff in tourists from Asia, as flights start to see lower volumes overall.
In one example, as noted by the Journal per stats from the Moodie Davitt Report, which researches the travel industry, airport retail at some major Asian hubs is down by as much as 70 percent, as traffic itself has dropped by 80 percent.
“This is the greatest crisis the travel retail sector has faced, worse than [severe acute respiratory syndrome], the two Gulf wars or various financial crises,” said Martin Moodie, chairman of the report. “That’s largely driven by the fact that the Chinese traveler has become the epicenter of the sector over recent years, and many retailers are worryingly reliant on them.”
Separately research from Pi Insight found that in a survey of more than 1,000 international travelers from the U.K., the U.S. and Asia, more than a third said they were less likely to touch items in a store or make a purchase if they had to stand in line. Some airports are starting to offer rent relief, said the Journal.
A bit closer to home, here in the States, airport foot traffic was down 15 percent last month in San Francisco, and was off 20 percent in Los Angeles, as estimated by Advan Research.
No easy time ahead, then, for perfumeries, duty-free liquor shops, newsstands and restaurants, where the skies (and revenue prospects) have suddenly darkened.
Sizzle
Plant-based foods: Sales of plant-based foods hit $5 billion in 2019, with year-over-year sales growth of more than 11 percent.
Faster deliveries: Amazon has established smaller warehouses around four more cities – including Dallas, Phoenix, Philadelphia and Orlando – to make its same-day deliveries faster. The programs sport guaranteed arrival times throughout the day for as many as three million items marked “Today By.”
Medical commerce: The coronavirus is helping to trigger 30 percent growth in wearable gadgets tied to health monitoring.
Fizzle
Airlines: The virus may cost the airline industry more than $113 billion this year, which is four times the projection of just a few weeks ago. In one example, Southwest Airlines has estimated that it will lose between $200 million to $300 million in sales – in the first quarter alone.
Hacks: Headlines are gathering on hacks, showing that, as reported by J. Crew, an unknown number of customers were compromised last year. T-Mobile was also hacked through an email attack.
Not ready for prime time: Right into a volatile week and soaring markets (okay, for a day or two), millions of Robinhood app users were locked out of the rally – because the systems went down.
Pay later plans are transforming how consumers manage their spending and how merchants engage with their customers. And there is a consistent theme: Adoption of installment options boosts consumer satisfaction and merchant sales.
For consumers, pay later plans offer flexibility and financial relief. More than 56% of consumers used installment payment options in the last year. PYMNTS finds that consumers are happy with these plans, with 76% of buy now, pay later (BNPL) users reporting high levels of satisfaction. These plans help consumers pay for essentials and large purchases alike.
Pay later plans often serve as a financial lifeline for individuals living paycheck to paycheck and struggling to pay bills. These consumers are four times more likely to use card installment plans than non-paycheck-to-paycheck consumers. High-income consumers living paycheck to paycheck are the most likely to plan to use these installment options in the next year.
For merchants, pay later plans drive spending and loyalty. Consumers spend 25% more on average when using general-purpose credit card installment plans compared to BNPL. Merchants who prioritize pre-checkout visibility for installment options see greater consumer engagement and conversion rates.
Download the eBook here.
This eBook examines the role of pay later options in modern commerce. Ten data-rich charts provide actionable insights into adoption patterns, satisfaction rates and spending behaviors. Uncover the strategic opportunities these plans offer merchants.
“10 Impact Statements – Pay Later Report” is a PYMNTS Intelligence original eBook based on surveys of over 5,000 U.S. consumers conducted between February 2024 and October 2024. This eBook explores the transformative role of pay later plans in consumer spending, satisfaction and merchant engagement, highlighting key trends and actionable insights for the year ahead.