The next most common problem, at least for retailers allowed to remain open or those that continued business online, was the unavailability of products for sale due to supply chain disruptions. Diversification of vendors and increased par stocking will be needed to protect against such problems going forward. However, both of these will result in at least some increase in product costs. When combined with decreased customer capacity due to new spacing requirements, there will almost certainly be a need to increase prices to protect narrow operating margins. Unfortunately, price increases can only occur if the market will bear them. The ability to trade-off price sensitive demand for higher-end demand is much lower in the retail sector than in gaming. In considering pricing models and product mix, careful consideration of the type of retail being offered and the type of customer being served will be key. There are actually several different types of retail that can be offered that coincide with the different reasons why customers might choose to buy. Convenience retail caters to the immediate needs of patrons for items they forgot, ran out of, or consume quickly. Impulse retail caters to many of the same shoppers but with items that they want rather than need, and that often have higher markups. Souvenir retail caters to shoppers seeking to find a tangible item to enhance their memories of their visit and to show others where they have been. Indulgence retail provides luxury items to patrons wanting to do some extra celebrating. General retail caters to the on-going regular needs of patrons whether on a weekly, monthly, yearly, or longer-term basis. Destination retail can incorporate one or more of the other types described, but has the unique characteristic of offering patrons from a wider area products that are highly desirable, usually specialized, and not readily available from other sources, at least not with the same price, quality, selection, or atmosphere. In general terms, indulgence and destination retail have more flexibility in pricing, as do some souvenir and impulse retail products. This is especially true in retail outlets catering to tourists, once the tourism segment returns. For retailers focused on these areas, upward adjustments to pricing to cover increased costs and lost volume may be more feasible. This can even be true for simple commodities. An example would be the travel plazas located along interstate interchanges. Often, they can charge more for their gasoline and other items than the same operations in the same community that are not on the interstate and cater only to local demand. For almost any retailer, with the possible exception of convenience stores and travel plazas, an increased online presence with delivery or shipping options, or at least preorder and pickup, will be a necessity in the post-pandemic retail world. The dominance of Amazon and a few other large retailers does not preclude smaller operators from participating in online retail sales. Smaller operators may be at a disadvantage in terms of shipping costs and visibility, but these are surmountable and do not outweigh the increased sales capacity gained.
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