Rise of Retail Trading in 2020

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Retail Trading is defined as any business activity linked with the auction of products to the final customer. It is the connection between wholesalers or producers and the consumers of the goods. Typically retailers sell products in fewer amounts to customers for own use and not for re-selling or commercial uses. Retail is the last step of the supply channel as the retailer purchases products from wholesalers or directly from the manufacturer in large amounts at a reduced price (Avhad &Yadav, 2020). Then they sell the products to the last buyers of the goods, in fewer parts, at a retail price enjoying the benefits in the end. Furthermore, retail Trading can take different forms; they can take place over the phone, via post services, door to door vending, and not necessarily that goods must be sold from a shop. Therefore, vending areas can differ significantly, a hop, a supermarket, a consumer’s house, or a selling machine.

The year 2020 has seen international business markets such as equities and foreign exchanges being shifted by an army of retail traders, in a way not seen earlier; therefore, 2020 has not been like the usual years. The Coronavirus epidemic has overturned values and disturbed the overall industries and styles of working. The new generation of retail traders has impacted the retail brokerage and investment firm, and it has been nothing short of extensive. The current generation of home-based day dealers has contributed to the directional flow of leading shares and exchanges (Dannenberg et al., 2020). First, the second quarter of 2020 allowed a vast number of traders worldwide to work from home due to the COVID-19.

Moreover, their working hours were reduced, and much of the globe went into lockdown, and show business and hospitality venues were required to close their businesses. Millions of individuals had a lot of free time, making others move into retail locations (Dannenberg et al., 2020). For example, in Japan, the fears of missing out stimulated new accounts in March as more than 250,000 new investors launched new versions through five massive online platforms.

The positive impact of COVID-19 on retail businesses is retailers have become innovative. Retailers have a retail trend called a visual search that enables shoppers to discover and purchase a product by snapping a picture. Optical search benefits retailers as they can post products in this search for their customers. However, Coronavirus’s negative impact on retail Trading is mainly the disruption of supply chains (Kunmann et al., 2020). For instance, Amazon and REI in the Seattle region were shut down after an employee was identified with Coronavirus.

Robinhood is an investing application that established free Trading and recorded great trades in 2020 after retailers’ stocks went low due to COVID-19. Vladimir Tenev developed the Robinhood app, and it has amused 13 million users who have uses zero-commission fee trading. Additionally, it has generated awareness of products and popularity, unlike that of the legacy brokerages such as Fidelity. Robinhood app is popular because of its easiness and capability to start vending in a matter of seconds (Berber et al., 2020). Young investors use this app because it gives traders control over trade and makes their own choices on investing their cash, especially on this pandemic.

To conclude, retail businesses’ future is expected that retail stores will hardly be recognizable though few will remain. Consumers will be able to shop for products in the environment they are. Likewise, facial scanners will be used to inspect customers as they enter, enabling a tailored experience for them. Also, payments will be made immediately after leaving the shop.

References

Avhad, S. M., & Yadav, R. R. (2020). Introduction to retail and retail in India.

Barber, B. M., Huang, X., Odean, T., & Schwarz, C. (2020). Attention Induced Trading and Returns: Evidence from Robinhood Users. Available at SSRN 3715077.

Dannenberg, P., Fuchs, M., Riedler, T., & Wiedemann, C. (2020). Digital transition by COVID‐19 pandemic? The German food online retail. Tijdschrift voor economische en sociale geografie, 111(3), 543-560.

Kurmann, A., Lale, E., & Tan, L. (2020). The impact of covid-19 on our employment and hours: Real-time estimates with Homebase data. May). http://www. andrekurmann. com/hb_covid.