Evolving retail

OLYMPIA — From pandemic lockdowns to a surge in thefts to major changes in shopping habits, it’s been a bumpy few years for retail businesses.

Renee Sunde, president and CEO of the Washington Retail Association, said the road ahead could be getting smoother — or maybe not.

“I think we had hoped that we were coming out of a challenging time, but really, when we entered 2023 we entered into a brand new challenge,” she said.

The new challenge is the threat of inflation and an economic downturn, following a couple of years of closures, off and on, as a response to the COVID-19 pandemic. She has talked with economists who have predicted everything from a full-blown recession to a mild economic slowdown. A contentious political climate also adds to the uncertainty given consumer responses to uncertain economic factors.

“Retail is really driven by the consumer, so consumer confidence is absolutely critical,” she said.

Consumers tend to be a little more conservative in their spending when confidence is low, she said.

There are some positive signs. Washington’s unemployment rate is 4.5%, not quite as low as the national unemployment rate but still very low. That’s good news for retailers, she said.

“That means that a large portion of people who want to work continue to be employed, and we continue to see steady wage growth in Washington State,” Sunde said,

Retailers in Washington are still holding their own, she said.

“Retail is still very steady and resilient, not booming like it was initially as we returned from the (pandemic) crisis, but stabilized and doing okay,” she said.

Danny Cuevas, owner of the Supreme Lookz barber shop and salon in Moses Lake, was outside on a Saturday afternoon, cooking bacon-wrapped hot dogs for customers. He sponsors a series of events on special days like Father’s Day, both to thank his customers and to keep his business in their minds. He opened his doors in late 2022.

“(Business) has been picking up. A lot,” he said. “Since we opened our shop we’ve definitely seen a lot of progress.”

Karissa Duncan, owner of Paws & Petals in Omak, decided to take the plunge into retail when the owner of a longtime floral business retired.

“I am just a year in,” Duncan said.

She’s actually done better than she expected.

“I’ve grown bigger than I anticipated in my first year,” she said. “I’ve been happy with the first year.”

The shop features pet supplies as well as jewelry, reflecting her interests, she said, and the retail shop has done good business. The downtown shop is part of a bigger business; as a florist, customers can make orders online and contact her via social media.

“The floral side is definitely booming,” Duncan said.

Retailers reacted to the pandemic shutdowns by coming up with new ways to conduct business or expanding on existing options.

“The outcome of COVID has really changed in the long term how retail looks,” Sunde said. “We saw small businesses stand up online platforms, (and) we saw a huge growth of online marketplaces. And that has continued to be the case.”

Retailers of all sizes offered, and continue to offer, online and curbside options for shoppers.

“The buy online, pick up in store has really become a new staple for the industry,” Sunde said.

Buyers can order and set up delivery from their phones, or through social media apps.

“The truth is, it’s completely changed and shaped the way consumers are purchasing what they need,” Sunde said.

But even with the new plethora of options, people still want to go to the store.

“I think a real return back to brick and mortar was what probably surprised most people the most. With all the shift that we saw in the heat of COVID, the need to move completely to online sales, I think we were very surprised this last holiday season, how many just wanted to come back to brick and mortar. They want the retail experience,” she said.

Sue Torrence, owner of Sue’s Boutique in Moses Lake, said shopping habits have changed as her business has rebounded. Fewer customers use her online option, and fewer make quick trips; Torrence said she’s seen a drop in customers coming on their lunch hour, as an example.

“We’ve been busy in a good way. I think people want to get out and shop,” she said. “People enjoy coming in, trying on (clothes). They want to get out and gather somewhere (with others).”

“A return to brick and mortar has been a strong comeback that we’ve witnessed across the state,” Sunde said.

Online retail sales have been a growing part of the market for years, and Sunde said she thinks that will continue. But the stores in town will still have their place.

“As long as (shoppers) have access to the inventory they need in their communities, that’s what keeps them going back to brick and mortar,” she said.

She cited Moses Lake as an example. People can find many things they need or want in town, but not everything, she said, and they turn to online options when it’s not readily available in town

“That’s where you’re seeing a broader range of access, (shoppers) using their own technology to get the products they want,” she said. “But it’s not going to take away from the need for brick and mortar in your community.”

Cheryl Schweizer can be reached via email at cschweizer@columbiabasinherald.com. For more stories like this one, visit our sister publication at www.basinbusinessjournal.com.