Strategic responses to the pandemic: a case study of the US department store industry

PurposeThe study focuses on (1) the success of three strategies employed during the pandemic – two "persevering” strategies, curbside pickup and return window extension and one innovative strategy, virtual try-on technology and (2) whether the strategies are likely to be successful in the post-pandemic world.Design/methodology/approachThe authors utilize a panel dataset containing 17 department store chains in the US The panel includes weekly sales by the retailers at the city level from 2018 to 2021, encompassing both a pre-COVID-19 period and a period during the pandemic. A two-way fixed effects model, including retailer-city fixed effects and year-week fixed effects, is used to estimate department store sales.FindingsThe authors find that the two persevering strategies offset the negative impact of government-imposed containment and health measures on sales performance. On the other hand, the innovative strategy is more effective with a low level of containment and health measures, leading to our observation that virtual try-on may be more sustainable than the other two strategies in a post-pandemic environment.Originality/valueThis paper makes the following contributions: First, the authors contribute to the literature on strategies that may be used to respond to crises. Second, the authors contribute to the retail management literature, assessing the impact of the three retail strategies on department store sales. Finally, the authors compare the impact on sales of the two persevering strategies to the innovative strategy and conclude that a mix of these types of strategies may be most effective at generating short-term sales during a crisis and longer-term sales post crisis.

Airline strategies during the pandemic: What worked?

An examination is conducted of airline strategies during the covid-19 pandemic using data from the United States. Our findings show that airlines pursued diverse strategies in terms of route entry and retention, pricing, and load factors. At the route level, a more detailed examination is conducted of the performance of a middle-seat blocking strategy designed to increase the safety of air travel. We show that this strategy (i.e., not making middle seats available to passengers) likely resulted in revenue losses for carriers, an estimated US $3,300 per flight. This revenue loss provides an indication as to why the middle seat blocking strategy was discontinued by all US airlines despite ongoing safety concerns.

The effects of air transport mobility and global connectivity on viral transmission: Lessons learned from Covid-19 and its variants.

We investigate the impact of air travel mobility and global connectivity on viral transmission by tracing the announced arrival time of COVID-19 and its major variants in countries around the world. We find that air travel intensity to a country, "effective distance" as measured by international air traffic, is generally a significant predictor for the announced viral arrival time. The level of healthcare infrastructure in a country is less important at predicting the initial transmission and detection time of a virus. A policy variable, notably the percentage reduction of total inbound seats in response to a viral outbreak, is largely ineffective at delaying viral transmission and discovery time. These findings suggest that air network connectivity is a major contributor to the speed of viral transmission. However, government attempts to delay viral transmission by reducing air network connectivity after the virus is first discovered are largely ineffective.