Coronavirus: Retailers get ready for shift to Covid-19 alert level 3

Friday, 24 April 2020

Retailers are gearing up for the loosening of lockdown rules when New Zealand moves from Covid-19 alert level 4 to level 3 next week.

Most have been unable to operate since the start of level 4 on March 26, unless they were classed essential.

That will change when the country enters level 3 at 11:59pm on Monday, with the shift allowing retailer to open 'so long as it is contactless retail', according to Prime Minister Jacinda Ardern.

'Covid-19 has spread in workplaces, so the quid pro quo of being able to open is doing it in a way that doesn't spread the virus,' she said this week.

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For many businesses, that means a significant change in the way they operate and all signs point to click-and-collect shopping becoming the 'new new normal', at least temporarily.

Several large retailers will offer the service at alert level 3, including The Warehouse Group.

Contactless click-and-collect will be available from The Warehouse, Warehouse Stationery, Noel Leeming and Torpedo7 stores at alert level 3, and drive-through shopping at four stores in Auckland.

Online shoppers placing a click-and-collect order can select a store to pick up from and will be sent an email or text when their order is ready for collection.

Contactless pick-up points will be available at more than 230 stores nationwide from April 28.

Most retail businesses have been unable to operate since the start of level 4. That will change at 11:59pm on Monday.

Mitre10, which has supplied a limited range to tradespeople and delivered essential items to the public during level 4, will offer contactless home delivery and click-and-collect on all stock at level 3.

Stores will remain closed and walk-up purchases and the addition of items to existing orders will not be allowed.

However, retail giant Briscoe Group, which includes Briscoes, Rebel Sport and Living and Giving, will not immediately offer click-and-collect.

Managing director Rod Duke said efforts were focused on getting all merchandise online ahead of the expected surge in demand at level 3.

'My understanding is that people will be a lot more inclined to embrace online shopping with contactless home delivery,' he said.

'Click-and-collect is an interesting piece but it's the one piece that could come unstuck. As soon as you have people coming to the store, whether they come to the front door or the back door, you're complicating things.'

Tim Lloyd fits a plastic-shielded counter near the door of Bruce McKenzie Booksellers in Palmerston North. From Tuesday, customers will be able to collect their online orders from the doorway.

Duke said he was confident delivery services will be have the capacity to handle a significant increase in online orders.

'I've had confirmation that they'll be able to meet the additional demand.'

But as the focus shifts from 'essential' economic activity to what is 'safe', New Zealand Post is bracing for another surge in demand.

Chief operating officer Mark Stewart said the group had managed 'large fluctuations in volumes of parcels and mail over the last several weeks'.

While overall parcel volumes had fallen at level 4, there had been a surge when businesses were given permission to post 'essential' goods in early April.

'We anticipate there will be another strong surge when the country transitions to level 3,' Stewart said.

NZ Post was attempting to ease the burden by running extra shifts, accessing extra vehicles, and converging mail facilities, he said.

Shopping centres are also preparing for an increase in trade, although many housed supermarkets, pharmacies and other essential services and had remained open at level 4, New Zealand Council of Retail Property chairman Campbell Barbour said.

However, retailers will need to follow click-and-collect guidelines for health and safety at level 3.

That will include having a single collection point for the public, positioned to avoid customers congregating inside shopping centres and to keep queuing and personal contact to a minimum.

Rod Duke, managing director of Briscoe Group, says the company is focused on home delivery rather than click-and-collect.

Staff and security will be present to ensure safe and efficient operation of the service.

All payments will be contactless, with no cash accepted.

Fast food chain KFC will take a similar position when it begins drive-through and home delivery services next week.

Paywave will be available and only cashless payments will be accepted.