The nationwide lockdown has impacted the retail sector with the absence of tourism, the limited human non-mobility, and the temporary closure of restaurants and shops across the country. With stores on high streets and in shopping centres closed, the only retailers running are supermarkets, pharmacies, and tobacco shops.

There are inevitable short-term effects. With reduced businesses, employees will be temporarily laid off. The good news is that the government will be offering subsidies to SMEs and self-employed individuals to soften the effects of a disrupted economy.

Another inevitable aftershock will be the product supply chain. We are already hearing about backlogs of products supposedly relying on China for their parts or manufacture. We have seen that electronics, cars, and most luxury apparel have not reached their destination due to logistics issues. But the gradual opening of the Chinese market may alleviate the backlog of stock, as was seen from medical supplies arriving to Spain.

Undoubtedly, retailers will feel the strain from empty premises, and in paying their employees during this lockdown period. However, some store owners, in an act of solidarity, are reported to be willing to offer concessions in the form of rent reductions, payment extensions, or lease period renegotiations. Nevertheless, for those who are not so lucky, they may have to close shop. This will be an opportunity for those who have the strong financial means to take up freed space while it is cheap.

In every crisis, there is opportunity. Since this is an unprecedented situation, the retail brands that pave the way forward will reap a business bonanza. Some retail sectors have quickly adapted to the situation, such as food and beverage where bars and restaurants have begun delivering food to customers who are isolated and in quarantine. Meanwhile, the department store El Corte Ingles is offering their click and car service, where people can collect products without entering the store. The more agile retail brands, those that have built their e-commerce way ahead, will reap the rewards, as this will be the preferred option for customers in the coming months.

Additionally, we have seen a surge of online businesses taking off, which is reshaping social behaviors. Now, families have more quality time to spend together to watch online streaming programs. Now, internet-driven education programs such as language courses are more sought-after. Alongside this, yoga and exercise classes are available through online streaming services.

It may be too early for companies to consider shifting their product lineup, but businesses in other countries have done so already. Liquor companies can easily redirect their business to producing the much-needed high-grade alcohol for cleaning. Smaller clothing outfits might change to mask-making. Taxi fleets might think about transforming into food delivery services. There is no limit to ingenuity in the drive to survive.

Meanwhile, some analysts believe that there will be a baby boom as a consequence of this lockdown. These futue Coronnials will provide the much-needed boost to consumption.

When the lockdown is lifted, initially some people will be cautious and hesitant to return to public spaces, while establishments will need time to get things moving again. Due to the unprecedented nature of the situation, it is difficult to predict how this process will unfold. However, a large part of the Spanish population, after being trapped indoors for so long, will be eager to dine out, visit shops, go to the gym, have their hair done and socialize with friends in bars again. The astute and well-prepared retailers will be poised to take advantage of this demand.