New Domo Report Exposes Impact of the Lockdown Economy

Rhea-AI Summary

Domo (Nasdaq: DOMO) has released a significant report detailing the impact of the COVID-19 pandemic on non-grocery retailers in 2020, based on analysis from their modern BI platform and SafeGraph GPS Mobility data. The report highlights a 14.1% overall decline in foot traffic, with an alarming 83.2% decrease for small businesses in April. Retailers utilizing buy online, pick up in store (BOPIS) had a significantly reduced decline of 1.2%. The report indicates future retail success will depend on rapid adaptation and digital innovation.

Positive

• Retailers using buy online, pick up in store (BOPIS) had only a 1.2% decline in foot traffic, showcasing a successful adaptation strategy.
• Home & Garden sector saw a 7.7% increase in foot traffic compared to 2019, indicating positive consumer trends.
• Domo's modern BI platform continues to provide critical insights for businesses looking to adapt to changing market conditions.

Negative

• Overall retail foot traffic declined 14.1% in 2020, with a 22.5% drop during the holiday season.
• Small retailers experienced an 83.2% drop in foot traffic in April, indicating severe challenges.
• Mall retailers faced a significant 38.8% decline in foot traffic, reflecting continued struggles in that sector.

Domo (Nasdaq: DOMO) today released findings from a new report that provides insight into the impact of the pandemic for non-grocery retailers in 2020. The analysis was performed using Domo’s modern BI platform that helps companies quickly unlock the value of data to accelerate digital transformation. It combines SafeGraph GPS Mobility data from 850 non-grocery retailers with more than 210,000 U.S. retail locations to analyze foot traffic, as well as data from the Oxford COVID-19 Government Response Tracker (OxCGRT)

“Overall average daily non-grocery retail foot traffic declined 14.1% across the year and 22.5% during the holiday season. Amidst these declines, there were clear winners and losers across the various retail segments,” said John Mellor, chief strategy officer, Domo. “Our latest report outlines key differentiators from the retailers that weathered the storm and those still trying to right the ships.”

Key Report Findings for 2020 Retail Trends:

• Fear of the Unknown: January and February 2020 roared out of the gates with 30.8% and 14.8% YoY foot traffic growth, but by March and April of the same year foot traffic plummeted. During the week of March 22^nd, states with stringent Covid-19 lockdown restrictions saw a 42.3% decline and states with less stringent restrictions also saw a 25.9% decline, indicating that fear may have played a larger impact than regulations early on.

• BOPIS Mattered: Based on the analysis, retailers that had buy online, pick up in store (BOPIS) experiences were able to draw in more foot traffic with declines of only 1.2% during the year versus the 23.3% decline that retailers without BOPIS saw.

• Nearly Three Quarters of Small Business Foot Traffic Gone in April: The year’s low point for foot traffic losses occurred on April 17^th; on this date, small retailers saw a staggering 83.2% drop in foot traffic and were only able to bounce back to a 51.3% decline over the summer. During the holiday season, small retailers were battered with 53% foot traffic declines while very large retailers were down only 11.7%.

• Time for DIY Projects: The top sector with foot traffic gains during the holiday and across the year was Home & Garden with 7.7% greater foot traffic in 2020 than in 2019.

• Another Blow to Mall Retailers: Retailers located in the mall suffered through a 38.8% decline in foot traffic versus the 9.4% declines of retailers not located in a mall.

Mellor continued, “Trends from 2020 foretell the likely volatile nature of the future lockdown economy. As the data shows, it’s clear that digital innovation was a critical component to retail survival through 2020 and makes clear that the future will belong to those retailers that can adapt quickly. These adaptations and innovations can be propelled through technology such as Domo’s modern BI platform, which quickly unlocks the value of data to help accelerate digital transformation initiatives.”

For more details from Domo’s Lockdown Economics 2020 Report, visit: https://www.domo.com/solution/2020-lockdown-economics-report/

To learn more about how Domo’s modern BI platform dynamically integrates data from thousands of sources to harness insights like those in this report, visit: https://www.domo.com/platform/

COVID / Retail Data Explorer Methodology

This analysis uses data provided by SafeGraph using anonymized cell phone data. It includes selected retailers across 15 categories representing 850 locations throughout the United States. The time frame starts in January 2020 (updated weekly) and currently includes 74.5 million rows of data. State Stringency data are based on the Oxford Coronavirus Government Response Tracker and are calculated by day and averaged by week. States with an index over 60 are considered "Strict", 50-60 are "Moderate" and below 50 are "Low".

About Domo

Domo is the Business Cloud, empowering organizations of all sizes with BI leverage at cloud scale, in record time. With Domo, BI-critical processes that took weeks, months or more can now be done on-the-fly, in minutes or seconds, at unbelievable scale. For more information about how Domo (Nasdaq: DOMO) helps its customers go fast, go big and go bold, visit www.domo.com. You can also follow Domo on Twitter, Facebook and LinkedIn.

Domo, Domo Business Cloud and Domo is the Business Cloud are registered trademarks of Domo, Inc.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210114005184/en/

FAQ

What trends did Domo identify for non-grocery retailers in 2020?

Domo's report noted a 14.1% overall decline in foot traffic, with varying impacts across different retail segments.

How did the pandemic affect small businesses according to Domo's report?

Small businesses saw an alarming 83.2% decrease in foot traffic in April 2020.

What role did digital innovation play in retail during the pandemic?

Domo emphasized that digital innovation was crucial for retailers to survive the pandemic's challenges.

What was the impact of BOPIS on retail foot traffic?

Retailers offering buy online, pick up in store (BOPIS) experienced only a 1.2% decline in foot traffic compared to a 23.3% decline for those without it.

Which retail sector saw growth in foot traffic during 2020?

The Home & Garden sector recorded a 7.7% increase in foot traffic in 2020 compared to 2019.