< PreviousWritten by Jessica FerlainoAmong COVID-19’s many new catego-ries of reality are “essential workers”. They were the ones thrust into the front lines when the economy was all but brought to a halt, responsible for the imme-diate needs of both economy and community.While essential workers were risking their lives, there were those deemed non-essential. These were forced to stay home, their busi-nesses shuttered, and their livelihoods put on hold, while the government attempted to navigate the pandemic.What makes a worker essential?SEPTEMBER 20211011BUSINESS IN FOCUS Considered criticalBasically, essential workers represent many sectors and include those who perform services and manage infrastructure con-sidered critical to the maintenance and preservation of public health, safety, security, and economic wellbeing.Among those who were deemed essential were health care workers and first responders, energy and utility workers, critical goods providers such as pharmacies and grocery stores, IT and communications tech support, manufacturing, government, transporta-tion, financial services, restau-rant workers, and hospitality staff.To be on the front lines meant vastly dif-ferent things to workers in different profes-sions. Healthcare workers were tasked with cruel demands on their lives and faced with the stark realities of the loss of life, and in many cases, a working experience of sacrifice and sheer hardship. Reality became something circumscribed by long hours and unrelieved by any idea of when reprieve would be granted.But something of the same stress was experienced by the grocery store employee who was managing panic buying and supply issues, as well as a fearful and emotional consumer base. Just like healthcare workers, they approached each day with a fear of contracting the virus or bringing it home to vulnerable loved ones.Although masking and social distancing mandates are in place, enforcement of the rules is patchy, as many have dis-covered firsthand. When grocery store employees have asked customers to follow masking guidelines they have frequently been met with anger and confrontation. This attitude ultimately puts employees at greater risk of transmission from infected individuals who choose not to comply, and exposes them to hazards not commensurate with their rate of pay.SEPTEMBER 202112What is “Essential” worth?For a period, essential workers were true heroes. While the general public shared their appreciation through public displays of synchronized clapping and flickering lights, the government and employers showed their support in different ways including wage increases, bonuses, priority access to vac-cinations and even the implementation of childcare programs.How do you put a dollar figure on a person’s health, safety, and wellbeing? In some cases, it was a $2 hourly increase, for others it was $4. Whether they were funded by government subsidies or voluntarily by employers, many of these wage increases were temporary and ended before the pandemic did.Federal funds were leveraged at provincial level in Canada and at state level in the U.S. to support essential workers, and healthcare workers were some of the first to receive wage incentives or bonuses. Funding mechanisms like the Heroes Fund or the American Rescue Plan were instituted, but did little to help the most vulnerable, including part-time minimum wage earners.In the retail sector, Walmart offered cash bonuses, a temporary pay increase of $2 per hour and an additional bonus as the pandemic persisted. The size of bonuses varied depending on whether or not employees were full- or part-time.Grocery stores in Canada also instituted a pay raise for employ-ees commensurate with time worked. Empire Foods, respon-sible for brands like Sobeys, Safeway, and Fresh Co., paid its employees bonuses of $10 to $100 per week depending on the hours they logged.Longo’s offered its employees a $2-per-hour premium that was instituted during three distinct periods over sixteen months. Loblaw offer a one-time apprecia-tion bonus, a discount program for employees and paid time-off to get the vaccination. Kroger in the United States temporarily raised wages as well.While some essential workers have received and benefited from wage increases and bonus programs, others are still waiting for their wage increases to be paid retroactively. Some have been overlooked completely, no pay increase promised or delivered, and little to no recognition given for risking their lives to keep the economy functioning. “Whether they were funded by government or employers, many of these wage increases were temporary and ended before the pandemic did.”13BUSINESS IN FOCUS The essential inequalityDuring the pandemic, some essential workers undertook the role from a sense of duty. Many others did it more out of the necessity of survival, in particular those in the lower income brackets. And of those, especially, women and people of colour.It was ironic that, for decades, many of the people who were now considered essential had been all but invisible.What the pandemic did was further highlight systemic inequalities and inefficiencies in the economy. Blue-collar and white-collar workers faced quite different reali-ties during the pandemic. White-collar workers could more easily transition to work-from-home scenarios, whereas blue-collar workers didn’t have that privi-lege – the privilege that could help screen them from the worst of the pandemic’s impacts.The same can be said for union versus non-union employment. Pressing for decent treatment of workers during the pandemic was nothing new for the unions, as these entities have long fought for workers’ rights and improved working conditions. The p an d e mi c further strengthened union efforts to ensure workers have access to safe workplaces and things like personal protective equipment (PPE) and hazard pay.It is clear that unionized workers have enjoyed the most pro-tections and the greatest job security during the pandemic, especially as we know that some government bodies and employers have used the pandemic as an excuse to suspend or temporarily alter labour laws.The pandemic gave unions an opportunity to represent their members, but many workers still have to do without the effec-tive support and strategy that experienced unions can provide. Women and people of colour were the likeliest to join unions, but they were also at risk of the greatest job losses during the pandemic, thus necessitating the push to unionize. Proof of the pudding is that nearly half of non-union workers would join a union if they could. “Despite the increase in wages and bonuses, grocery stores posted record profits, meaning the increase was, in fact, sustainable.”SEPTEMBER 202114Labour re-evaluatedWith the new division of labour between essential and non-essential workers, society underwent a reevaluation, repri-oritizing which industries and professions were essential and the value of these positions from an individual and collective standpoint.Some places, like Ontario, have yet to fully reopen their economies; however, some of the bonus schemes linked to the “essential” category that were officially instituted have already come to an end. How is it that while the threat of COVID-19 is still real, and certain employees are still deemed essential, they are no longer compensated as such?Despite the increase in wages and bonus programs, grocery stores posted record profits, meaning the increase in wages was, in fact, sustainable. But although businesses that were deemed essential are experienc-ing their highest-ever profits, they are also experiencing challenges.Certainly, there are risks associated with outbreaks and sick days, but one of the major challenges being faced by employ-ers is a shortage of workers. Restaurants and retail operations, specifically, are having a difficult time finding employees.Partially due to fear and stress, many employees have decided that their health and financial wellbeing are not worth the risk of contracting an illness. Others have utilized the government assistance programs available to those whose income has been impacted by the pandemic.This has become a very divisive topic, as there are some who blame the government stimulus as the reason for workers choosing not to return to their jobs. However, given the free market principles upon which the economy operates, is it not up to employers to increase wages to make employment more attractive, thus attracting supply during a time of scarcity and great demand?As Jim Stanford noted in the Toronto Star in his article Restaurants and stores say govern-ment aid is to blame for a labour shortage — but the hard data tells a different story, “Wages in stores and restaurants remain very low, and are not rising, which should happen if labour was genuinely scarce.”There is a clear need to re-evaluate, or revalu-ate, what it means to be essential – to ponder again what that is worth.If government stimulus is equal to, or relative to, a low-wage earner’s income, perhaps it is time to reconsider minimum wage in favour of a living wage or universal basic income programs, especially if the workers in question are, or have been, considered essential. Designed by Ashley Dowling15BUSINESS IN FOCUS 16SEPTEMBER 2021Written by Claire SuttlesIt is worth noting that the trend has continued into 2021, and some of the figures certainly reflect the spike in COVID-19 cases in January of 2021, suggesting that consumers may continue to take advantage of the convenience online shopping provides. Online sales increased 39 percent year over year in the first quarter of 2021, almost three times the 14 percent increase in the first quarter of 2020, and faster than the third and fourth quarters of 2020, according to Digital Commerce 360. As of March 2021, consumers made 43 percent of their monthly retail purchases online, according to Square Inc. In response, retail-ers have continued to bolster their e-commerce options, with 88 percent now selling online. This shift has become imperative in today’s retail landscape; among retailers that sell online, 58 percent of their revenue is made up of online sales, Square Inc. reports. There is increasing pressure for retailers to adopt new technolo-gies and methods to woo consumers who have abandoned traditional in-person shopping or who want an in-person shopping experience with less contact and more convenience. Virtual shopping is one innovation that gained a strong foothold during the pandemic and will likely remain popular. Last year, many quarantined shoppers, particularly those in Asia, got their shopping fix from live stream technology The COVID-19 pandemic changed the face of retail in 2020—and possibly forever. Unprecedented challenges led to adopting new trends throughout the industry and strengthened or sped up the adoption of others. From a major spike in e-commerce and contactless shopping to the develop-ment of new retail technologies, shopping in 2021 is an evolving experience that promises to continue to push the envelope to deliver what today’s consumers expect and demand.One of the most obvious consequences of the pandemic has been the dramatic shift away from brick-and-mortar shopping. E-commerce was already gaining substantial ground before the shutdown, but the pandemic drove more consumers online, leading to an additional $105 billion in U.S. online revenue in 2020. Online sales reached a total of $791.70 billion that same year, up 32.4 percent from $598.02 billion the previous year, Digital Commerce 360 reports. 17BUSINESS IN FOCUS when deprived of traditional in-person shopping sprees, Brandwatch reports. These shoppers enjoyed interacting via a blend of platforms including live chatting on social media, live streaming, and DTC live selling. Hosted by popular influencers and celebrities, these interactive shows featured everything from makeup and skincare to fitness and healthy eating—any topic with a related product to sell. More than one in three retailers will invest in live stream shopping this year, Square Inc. reports.Consumers are not ready to give up in-store shopping entirely, however. More than nine in ten consumers “still crave the thrill of shopping inside a physical store,” Square Inc. reports. Of these consumers, almost 50 percent say they miss browsing and “getting out of the house.” Two in five miss getting a purchase instantly, rather than having to wait for shipping.But, today’s consumers expect a next-generation in-person experience, rather than traditional brick-and-mortar shopping. In short, they want the best of both worlds. Shoppers want to browse aisles, enjoy unexpected finds, and choose their own products—but they also want to keep many of the new con-veniences that retailers have had to adopt since the onset of the pandemic. The result will likely be a symbiotic relationship between e-commerce and in-person shopping, where one complements the other, Square Inc. points out.At the onset of the pandemic, retailers began offering consumers the option to try on makeup and apparel virtually. ‘Virtual try on’ is one area of technology that continues to show promise, even as social distancing restrictions ease. Forward-thinking clothiers are rolling out digital fitting rooms that utilize virtual technology to enhance and simplify the traditional fitting room experience. Mango is one of the latest fashion retailers to offer an ‘Internet of things mirror’, Current Daily reports. Shoppers simply scan clothing tags to request different sizes and colors or to view suggestions of pieces that would complete the look they hope to create; sales associates receive an alert via a digital watch. Mango is currently testing the technology with the hope of implementing it in the brand’s top stores around the world. The Spanish clothier is just the latest retailer to demonstrate an interest; Rebecca Minkoff, Ralph Lauren, and Tommy Hilfiger have also been experimenting with the new technology, Current Daily reports. Touch-free checkout is a technology that today’s consum-ers have come to expect as they return to in-store shopping. Amazon became a trailblazer in this area with the implementa-tion of its Just Walk Out technology, which lets shoppers grab the products they want and then, as the name implies, just walk right out of the store. The process is remarkably simple for on-the-go consumers. They enter the store using a credit card, the technology detects what items the shopper takes from—or returns to—a shelf, and then, after the shopper leaves the store, Amazon bills their credit card. While not as dramatic as Amazon’s Just Walk Out experience, other retailers continue to expand their contactless and self-checkout options. One of the most popular solutions is mobile cashier or mobile scan, in which shoppers simply scan items with their phones and pay using an app. In addition to uphold-ing public health precautions during the pandemic, the tech-nology saves shoppers time since they skip checkout lines. ‘Buy online, pick up in-store’ and curbside pickup are also likely to remain popular post-pandemic. These options were available before COVID-19 hit, but the introduction of social distancing really made these shopping experiences take off. More than half of consumers in the United States who bought online and picked up in-store in 2020 reported that they expect to keep using the service in the future, according to a McKinsey & Co. survey.Shoppers flocked to big box stores during the pandemic. These retail giants had money to invest to improve the shopping experience, and they offered a variety of options consumers needed during the shutdown, including online shopping, con-tactless checkout, delivery, and ‘buy online, pick up in-store.’ For shoppers who had to venture into a brick-and-mortar store, the broad range of wares in big box stores allowed them to limit trips out, reducing potential exposure to COVID-19. Last year, Amazon, Wal-Mart, Target, and Costco all enjoyed growth ranging from “very solid to explosive,” Retail Dive reports, explaining that the pandemic “had the effect of accel-erating a longstanding trend of consumers ditching specialists for generalists as a matter of convenience and price.” On the flip side, the pandemic also created some advan-tages for local retailers that may come into play in the future. Almost three out of four consumers prefer delivery over pickup when they are online shopping, Square Inc. reports. But, only 37 percent of retailers provide same-day delivery. Local retailers have an edge in this area because their proximity to the consumer allows faster delivery, and their smaller size may allow for a more efficient turnaround. We have yet to see if local retailers will manage to take full advantage of this opportunity and woo shoppers back or if consumers will continue to choose the big retail generalists in ever-increasing numbers. While the race between local retailers and the retail giants is still on, one factor is clear. The retail landscape has been reimagined during the pandemic and retailers of all shapes and sizes will have to evolve to keep up. From virtual reality to Just Walk Out technology, the store of the future is here today, and as modern demands continue to drive the industry forward, this is only the beginning. Designed by Ashley Dowling19BUSINESS IN FOCUS Next >