Covid-19 impact on retail supply chains
2 minute read
The COVID-19 pandemic has caused a sudden and severe impact on international trade, investment and global economic growth. As nations grappled with the impact of the virus, factory closures throughout international markets caused a ripple effect across an expansive supply chain network, quickly leading to disruption across the world.
This is the first of four articles based on a wider piece of research on Covid-19 and the future of retail supply chains by Retail Economics.
Retailers across Europe experienced a significant shock to both supply and demand on an unprecedented scale, compounded by government measures which restricted the movement of people and goods. World exports fell as certain governments imposed unilateral export controls on specific goods to protect domestic supply, while others reduced tariffs to encourage trade. Meanwhile, tighter border controls slowed the ability for goods to seamlessly transit through countries.
World exports fell by 19% from December 2019 to May 2020
Source: CPB World Trade Monitor
While these measures were temporary, the impact across supply chain networks could cause longer-term distortions. In this series of articles of Covid 19 and the future of supply chains, we will look at the supply chain issues that retailers are facing and will continue to face as we move out of the pandemic, as well as how these retailers can go about adapting and evolving their supply chains to make them more resilient.