There are over 85,700 grocery stores in the USA. Supermarkets and grocery stores are the 2nd ranked retail trade industry in the country, projected to generate an estimated $765B in sales in 2022 and accounting for nearly 86% of the US food and beverage retail market.

Grocery businesses include any retail stores that sell food, including:

• Specialty stores
• Delis
• Health food stores
• Supermarkets
• Hypermarkets
• Wholesale grocers
• Greengrocers

As a purveyor of essential goods, grocery stores are typically more resilient to social and economic changes than other retail specialties. Though demand is relatively consistent and these retailers can typically rely on repeat customers, they are also more susceptible to challenges like low margins, supply chain issues, and spoilage.

Most of the grocery market is dominated by large businesses-mass-market retailers accounted for 48% of sales in 2020, and Walmart alone accounts for 47% of online grocery delivery and pickup sales. Large retailers may be more insulated from these challenges, but small, local grocery stores will feel the pinch more keenly when demand shifts, supply runs low, and consumer behaviors change.

Grocery stores of all sizes are looking for ways to pivot to meet changing customer needs and preferences. Physical stores remain the leading channel for purchasing groceries, but digital sales are projected to grow as more Americans go online to place grocery orders-online sales were expected to capture 10% of the total grocery market in 2021, and are projected to reach nearly $190B by 2024.

Larger grocers are better positioned to adjust to these changes, but smaller grocers may not have the working capital or infrastructure to pivot as easily. Retail store loans can help grocers of all sizes and specialties meet these challenges and continue to grow.

Long and short-term law firm funding options are available, including:

1. SBA loans for accountants
2. Bank loans for accountants
3. Alternative funding
4. Lines of credit
5. Equipment financing

Let's take a look at each of these options.

SBA loans are often considered to be the most ideal source of small business funding thanks to their low rates, long terms, and high loan amounts. They also have the longest application process, extensive paperwork requirements, and the strictest eligibility criteria-businesses must provide at least two years of detailed financial documentation, and only those with the strongest credit scores are approved.

SBA loans are not actually disbursed by the Small Business Administration. Instead, applications are reviewed and funds are disbursed by commercial lenders who partner with the SBA. If approved, the SBA guarantees the loan up to 85%, reducing the risk to the lender and in theory encouraging them to approve more loans.

Multiple types of SBA grocery store loans are available, including:

• 7(a) Guaranteed Loans: 7(a) loans are the most popular SBA funding option, with loan limits as high as $5M, terms as long as 25 years, and the lowest rates available. These loans typically require collateral, but have the fewest restrictions on how you can use your funding. Express loans are also available, with a turnaround time of 36 hours or less. Express loans typically don't require collateral for amounts under $25,000.
• 504 Loans: 504 Local Development Company Program loans are long-term, fixed rate loans that are commonly used to purchase real estate and equipment. These loans are disbursed by community development corporations through commercial lending institutions, and require the borrowing business to use their financing to create or retain jobs, or uphold other public policy goals such as rural development, revitalizing a business district, or supporting minority-owned businesses.
• Microloans: Microloans are available to a maximum amount of $50,000 with a maximum repayment term of 6 years. These loans can be used for working capital, inventory or supplies, furniture or fixtures, or machinery or equipment, and are available through select non-profit, community-based organizations.

Regardless of which type of SBA grocery store loan works best for you, the application process for SBA funding is the most rigorous with the strictest eligibility requirements. It can take weeks or months to get a decision, and most applicants are rejected, especially those with low credit, a history of unstable cash flow, or those seeking short-term financing or smaller loan amounts.

Grocery stores may be able to get the funding they need from traditional commercial lenders like banks or credit unions. Terms and rates will be competitive but may not be as low as SBA loans, and will ultimately depend on the size of the loan and your financial history.

Lending requirements may not be as strict as the SBA, but bank loans for grocery stores may still be difficult to acquire due to the perception of risk thanks to factors like lower margins and unstable cash flow.

Banks tend to prefer lending to larger businesses, or issuing larger loans, which can make it tough for smaller retailers and those looking for smaller loan amounts to find the funding they're seeking. Grocery stores with existing lender relationships may have better odds of getting approved, but similar to the SBA, it can take weeks or months to process a loan application, with no guarantee of approval.

Alternative grocery store loans are available from direct online lenders like Bluerock Options®. Application requirements are more flexible and turnaround is much faster-funds can be deposited in as little as one business day-but typically loan amounts are lower, terms are shorter (1-3 years or less), and rates will be higher than SBA or bank loans.

Approval for alternative grocery store funding is based on the overall health and potential of your business, with less focus on your financial history and credit score. These factors will still be considered, but will be reviewed alongside other factors like your cash flow, vendor relationships, and public reputation.

Multiple types of alternative funding are available, including short term loans and lines of credit, as well as innovative non-loan funding options like merchant cash advances and invoice factoring:

• Merchant cash advances are a non-loan form of financing known as an asset purchase. In exchange for a lump sum of working capital up front, your lender will receive a percentage of your daily or weekly credit and debit card sales until the advance has been repaid. MCAs are ideal for businesses that process a large volume of credit card transactions, including grocery stores. Learn more about merchant cash advances.
• Invoice factoring is another non-loan form of financing known as accounts receivable financing. Essentially, a business sells their outstanding invoices to a lender, called a "factor". The factor pays the lender up to 90% of the invoices' value up front and is responsible for collecting payment from the customer. When the invoice is paid, the factor will deposit the remaining amount into the borrower's account, minus any fees. Invoice factoring is ideal for businesses with large outstanding invoices and long accounts receivable periods. Learn more about invoice factoring.

Alternative lenders typically place no restrictions on how funds are used and often do not require collateral, making these lenders an ideal option for businesses that don't meet the strict criteria of the SBA and banks. With faster turnaround, alternative lenders may also be the best option for businesses that need fast funding or don't have time to navigate the long application process of these lenders. Alternative lenders are also more likely to lend to newer businesses, though some will not lend to businesses in operation for less than 6 months.

Lines of credit function similarly to credit cards, but with longer terms and lower rates. Business owners can draw and repay from the line as needed, and will only ever pay interest on the amount borrowed.

Business lines of credit are available from both traditional and alternative lenders. Alternative lenders may have easier approval requirements, but may also have lower credit limits and higher rates than traditional lenders.

Lines of credit are the most flexible form of financing for grocery stores, with no restrictions on how funds are used. Lines of credit are typically ideal for covering unexpected expenses, occasional purchases like inventory or new equipment, or other major expenses that don't require a larger loan but which can still strain your cash flow.

Equipment loans are designed specifically to finance the purchase of equipment, such as self-checkout kiosks, new computer systems, store fixtures, automation technology, or appliances like refrigerators and deli slicers. Similarly, inventory loans are designed to finance the purchase of new inventory, such as new product lines, seasonal inventory, or purchasing inventory in bulk at lower rates.

The equipment or inventory acts as collateral to secure the loan, so this type of loan may be easier to acquire for newer businesses or businesses with lower credit scores.

The best grocery store loan for your business depends on how much funding you need, your financial history, your monthly sales, and how you plan to use your funding.

For short-term funding, non-loan financing such as merchant cash advances or invoice factoring can provide a quick infusion of working capital that can be used for any purpose, such as purchasing inventory, bridging cash flow shortages, or marketing your grocery store to a wider audience.

For short-term funding, non-loan financing such as can provide a quick infusion of working capital that you can use to maintain cash flow, cover unexpected expenses, or fuel your business's growth.

For long-term funding, SBA 7(a) loans offer highest loan amounts, lowest rates, and longest terms, but they are the most difficult to acquire. Bank loans may be easier to acquire, but can still be difficult due to perceived risk. If you don't meet the strict approval criteria of these lenders, alternative lenders also offer term loans, though terms may be shorter than SBA and bank loans.

For fast funding, alternative lenders are always your best choice. These lenders can approve and deposit funds in as little as one business day, while the SBA and banks can take weeks or months with no guarantee of approval.

The grocery landscape is shifting. As consumer behaviors change, grocery stores will face number of opportunities to grow, such as:

• Online shopping: Shoppers have been pleased by the emergence of new options for click-and-collect and delivery and are indicating a preference to continue with these patterns as we emerge from the COVID-19 pandemic. 45% of millennials do their grocery shopping online and consumers typically spend nearly $40 more per order when they shop online, but it can be hard for smaller grocers to make the adjustment to omnichannel shopping despite these trends. Grocery store loans can help you invest in omnichannel approaches, such as subscription services with no-fee pickups, stocking primarily fresh items in store and fulfilling online orders for dried goods and other items, ensuring ease of selection and checkout, quick access to past orders, and transparency into in-stock items.
• All-natural or plant-based products: Demand for all-natural, plant-based, and organic products has expanded during the pandemic. According to McKinsey & Company, the trend is unlikely to revert and the "net intent to focus on healthy eating and nutrition is expected to be up 38 percentage points over 2020, with consumers specifically seeking out naturally healthy, high-protein, low-sugar, and low-calorie foods". Grocery store funding can help you acquire this inventory and make the necessary adjustments to your merchandising to stock these items without compromising your cash flow.
• Prepared meals and other household goods: Demand is growing for fresh, ready-to-eat, and frozen products as fatigue for cooking at home sets in and the meal kit industry grows. 40% of consumers also indicate they would prefer to frequent stores that sell more than just groceries, such as pharmacy items and household goods. Grocery store loans can help you invest in this inventory so you can better meet the changing needs of your customers.
• Updating technology and software: Adding self-checkout kiosks, developing e-commerce capabilities, and improving point of sale systems can streamline your operations and provide options that suit the changing needs and preferences of your consumers. These technologies can be costly, and grocery store loans can help you finance these purchases without impacting your cash flow.
• Data analysis and personalization: Consumers are more likely to patronize retailers that combine timely, relevant offers with good pricing, and 60% of leading grocery retailers invested in enhancing personalization strategies in 2020, particularly for promotions and pricing. Understanding what your customers are buying and analyzing their purchasing patterns can help you offer better sales and personalized promotions and project demand. This trend is projected to increase in 2022 as supply chain issues lead to more shortages and consumers seek suitable alternatives to their preferred products. Grocery store funding can help you invest in these technologies so you can offer compelling deals and promotions.
• Private label: A growing emphasis on affordability in 2021 and into 2022 may accelerate demand for private label brands. Grocery store loans can help you establish a private label, whether you develop it from scratch or partner with other local brands.
• Support local: 42% of consumers say they'd buy more locally sourced items moving forward. In a post-COVID world, many people also feel safer in smaller stores where there aren't as many shoppers and they can get in and out quickly. Use your grocery store loan to partner with other local businesses to create deals and promotions for products you can't carry in store, such as other household goods retailers or even local restaurants to offer kitchen-fresh or ready-to-eat-meals.
• Purchase inventory in bulk: Use your grocery store loan to purchase inventory in bulk at discounted prices, or stock up for seasonal sales.
• Renovate or adjust your floor plan: Grocery store loans can be used to give your store a facelift and create a more pleasant environment, or adjust your floorplan to better suit the changing needs of consumers by making more space for fresh foods, ready-to-eat, and prepared meals. You could also use your funding to expand your store and create more space to fulfill online orders

Grocery store loans can also help you meet the challenges of running a grocery store, including:

• Rising food prices: Food prices rose 3.5% in 2020 and have continued to climb faster than inflation in 2021 and 2022. Cash flow shortages may emerge as people spend less on groceries, and grocery store funding can help you bridge these gaps so you can continue to grow.
• Supply chain issues: COVID-19 led to widespread supply chain issues, and product shortages in food production, transport, and restocking are common as we emerge from pandemic restrictions. Motivating suppliers to prioritize smaller retailers over larger competitors can be a challenge, and independent stores are more often at the bottom of suppliers' priority lists. However, independent stores also have more freedom and agility when it comes to making supply chain adjustments, and grocery store loans can help you shore up cash flow shortages caused by supply chain issues so you can invest in new supplier relationships.
• Staff shortages: The ongoing effects of the COVID-19 pandemic are leading to more frequent staff shortages if more workers are home sick. Offering competitive salaries, paid sick days, and other benefits can help attract new workers. Adopting automated technologies such as self check-out kiosks or aisle-scanning robots to monitor inventory can help you address staff shortages. Grocery store loans can provide the funding you need to make competitive offers and invest in automated technologies.
• High competition: Smaller, local grocery stores must compete with bigger players who may be able to offer lower prices and better deals, as well as online ordering services like Instacart or Amazon delivery. Consumers are also consolidating their shopping patterns and are less willing to visit multiple stores per week to find what they want or to get the best price. It can be difficult for smaller, independent grocers to compete in such a market, with limited space for new products and less capacity to scale omnichannel approaches to offer the same convenience as larger players. Grocery store loans can provide the funding you need to adjust your promotions, products, or merchandising to compete with larger retailers.
• COVID-19: Grocers are considered essential retailers and therefore saw less change in demand and claimed more "share of stomach" during the pandemic-North American grocery sales grew by approximately 12% in 2020 compared to the standard growth of 1-2% per year. However, as restrictions ease, consumer spending at restaurants is expected to increase. Grocery store loans can help you pivot to meet the changing needs of consumers and capture as much "share of stomach" as possible.

Retailers, including grocery stores, are often considered to be a riskier loan applicant because of factors like low margins, high competition, and cash flow shortages. Here's what you need to know before applying for a grocery store loan:

• It can be difficult to get a grocery store loan from traditional lenders because these lenders typically consider grocery stores to be higher risk due to cash flow fluctuations caused by a reliance on selling higher quantities of lower-priced, perishable items. Alternative lenders have more flexible approval requirements that will factor in other criteria in addition to your financial history and may be a better source of funding for grocery stores.
• You may need to supply a business plan. All lenders will require you to describe how you plan to use your grocery store loan, as well as how you plan to repay it. The SBA and banks will require a formal business plan as part of your application, but alternative lenders may only require a purpose statement. It's always a good idea to have one prepared just in case in order to minimize any delays with your application.

Otherwise, the steps you'll follow when applying for a grocery store loan will be similar to other industries.

Learn more about how to apply for small business funding

As an alternative lender, Bluerock Options® can approve more grocery store loans than traditional lenders. We can also approve your grocery store funding faster, with funds deposited in as little as 24 hours. We provide several types of small business funding to help grow your grocery store, with funding from as low $3,000 up to $500,000.

Bluerock Options® funds all grocery specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business's cash flow.

According to the National Retail Federation, there are over 1 million retail establishments in the United States-98% of which are small businesses.

Retail businesses include any enterprise that sells finished goods and/or services, such as salons and spas, specialty stores, clothing stores, convenience stores, furniture stores, electronic and appliance stores, hardware stores, and more. Regardless of what product or service you specialize in, the retail sector is distinguished by a number of unique characteristics, such as:

• Seasonality: Many retailers are dependent on seasonal purchasing patterns and need to stock up on inventory and merchandise before their busy season. Dips in cash flow, including predictable lulls, can make it difficult to purchase the inventory you need when you need it.
• Storefront: Retail businesses need to present an inviting atmosphere in order to draw in foot traffic and encourage purchases. The circumstances surrounding COVID-19 have created further complications as retail businesses must make adjustments to their storefronts to help control in-store traffic and discourage customers from spending more time browsing.
• High turnover: Employee turnover is high in the retail industry, creating cash flow challenges for businesses who must hire and train new employees.
• Technology: Retail businesses need attractive and easy-to-use websites to thrive, as well as up-to-date point of sale systems and secure customer relationship management software.
• Buyer behavior: 73% of consumers are "omnichannel" shoppers who use multiple channels during their shopping journey, such as browsing and reading reviews online before purchasing in-store. Adjusting to this new buyer journey often requires investment in new channels and technologies.

All retailers can benefit from an infusion of working capital, whether you're looking to open a new business, fill seasonal cash flow gaps, stock up on inventory, or expand your existing retail store.

Multiple types of funding are available to help retailers overcome challenges and continue to grow. Long- and short-term funding is available, as well as secured and unsecured loans, including:

1. SBA retail business loans
2. Bank loans
3. Alternative lending
4. Business lines of credit
5. Equipment financing
6. Inventory financing

Let's take a closer look at these options:

The Small Business Administration doesn't provide funding directly-instead, the SBA guarantees loans issued by commercial lenders like banks or credit unions up to 85%. This reduces the risk to the lender and encourages lenders to issue more retailer loans.

Because the risk to the lender is lower, SBA loans typically offer the best terms and rates. However, the application process for SBA funding is rigorous, with strict eligibility requirements and extensive application forms that require years of detailed personal and business financial information. It can take weeks or months to process your application, and approval is never guaranteed. Most applicants are rejected, especially those with low credit, a history of unstable cash flow, or those seeking short-term financing for retail business.

SBA loans are available to both start ups and existing retailers. Several SBA loan options are available, but there are typically two types of SBA loans that are ideal for retailers:

• 7(a) Guaranteed Loans: With loans up to $5 million available, longer repayment terms, and low interest rates, 7(a) Guaranteed Loans are the most popular form of SBA funding. These loans typically require collateral but have the fewest restrictions on how you use your funding. Express loans are also available with a turnaround time of 36 hours or less and typically don't require collateral for funding under $25,000.
• 504 Local Development Company Program: 504 loans are long-term, fixed rates loans that are most commonly used to purchase real estate or equipment. These loans are provided by CDCs through commercial lending institutions and require the borrowing business to use the financing to create or retain jobs or uphold other public policy goals, such as rural development, revitalizing a business district, or supporting minority-owned businesses.

Retailers may also be able to access funding through commercial lenders like banks or credit unions. Terms and rates are competitive, but are not as low as SBA-guaranteed loans and will typically depend on the size of the loan and your credit history. Lending requirements are also generally not as strict as the SBA, especially if you have an existing relationship with your lender, but it can still be difficult for retail businesses to get financing due to the presumed risk level of the industry and factors like volatility and unstable cash flow.

Similar to SBA loans, applications for retail business loans from banks can take weeks or months to process with no guarantee of approval. Banks typically prefer to lend to large businesses or issue loans for larger amounts, making it tough for small retailers or retailers looking for smaller loan amounts to access funding from commercial lenders.

Alternative funding from direct online lenders like Bluerock Options® is easier to acquire than SBA or bank retail business loans. These lenders base your approval on the overall health of your business, with flexible lending requirements that place less emphasis on factors like your credit score. Approval can be made in less than 24 hours, making alternative funding one of the best options for retailer loans. These lenders are also more likely to lend to newer businesses, though some will not lend to start-ups or businesses in operation for less than 6 months.

Because the underwriting process is less strict for alternative lenders, funding from these sources typically has higher rates than SBA or bank loans, often with daily or weekly repayment terms depending on the type of funding you're seeking.

Multiple types of short- and long-term funding are available depending on your medical practice's needs, including lines of credit, alternative small business loans, and real estate collateral loans, as well as non-loan financing such as merchant cash advances and invoice factoring, typically with no limits on how you use your funding.

Business lines of credit are the most flexible form of retailer funding. Lines of credit function similarly to business credit cards but with longer terms and lower rates, allowing you to draw and repay from the line at any time. There are no restrictions on how funds are used and you'll only ever pay interest on the amount you borrow, making lines of credit ideal for unexpected expenses, occasional purchases like inventory or new equipment, or other major expenses that don't require a larger loan but which can still strain your cash flow.

Equipment financing is designed to help retailers purchase expensive equipment such as new computers, point of sale systems, delivery vehicles, specialty equipment, store fixtures, and more.

Lenders will typically supply 80-100% of the cost of the new equipment. The equipment serves as collateral to secure the loan so this type of financing typically has lower rates, and is typically repaid in regular monthly installments with the length of the term dependent on how long the lender anticipates your equipment will last.

Similar to equipment financing, inventory financing is designed to help retailers replenish their stock without putting up additional collateral because the inventory itself is used to secure the loan. Inventory financing typically takes the form of a business line of credit, a short term loan, or a term loan with the specific purpose of purchasing inventory.

The best retailer loan depends on your business's goals. Your funding, including the amount you borrow and your repayment terms, should always serve a specific purpose that aligns with your business's goals, such as replenishing inventory ahead of a busy season, purchasing new equipment or technology that will help you conduct more business, or boosting your business's marketing.

For short-term funding, non-loan forms of financing such as merchant cash advances or online invoice factoring can provide a quick infusion of working capital. These types of short-term financing can be used to purchase inventory, fill in cash flow shortages, or market your business to a wider audience.

For long-term funding, SBA 7(a) loans offer the best rates and terms but are the most difficult to acquire. Retail business loans from banks may be easier to acquire, but can still be difficult due to the perceived risk and cash flow volatility. If neither of these options are available to you, alternative lenders also offer long-term funding like small business loans or collateral business loans.

For fast funding, your best option is always an alternative lender. These lenders can approve and deposit funds in as little as 24 hours, while SBA and bank loans can take months with no guarantee of approval.

Retailer funding can help retail businesses in all specialties overcome the unique challenges of their field, including:

• Seasonality: Retailers are especially susceptible to seasonal fluctuations in supply and demand, leading to inconsistent cash flow that can make it difficult to maintain operations throughout the year or acquire funding needed to navigate challenges or continue to grow.
• Competition: Retail businesses are under constant pressure to attract and retain customers. Setting your business apart from other retailers in your area or big box stores with lower price points often requires a financial investment that many retailers may struggle to make.
• Customer behaviors: Customer behaviors are changing rapidly, especially thanks to the COVID-19 pandemic-59% of customers say they're more likely to continue curbside pickup after the pandemic, for example. Customers want to be able to purchase items online for delivery or curbside or in-store pickup, which requires retailers to have an easy-to-use website and a streamlined order fulfilment infrastructure.
• Inventory: Inventory management-knowing what to buy, when to buy it, and when to mark down or clear out underselling products-is an ongoing challenge for retail businesses. Inaccurate inventory records cost companies on average 10% per year, but inventory management systems can be expensive to purchase and implement in addition to the time it takes to train employees how to use them properly.
• Technology: Technology such as security systems and point of sale software that enables tap payments for credit and debit card processing may require a significant investment in order to keep up with competitors.
• Employee turnover: Employee turnover is especially high in retail. Losing employees and having to rehire and train new staff can drain your business's cash flow.
• COVID-19: Many small retail stores were forced to close or alter operations during the early phases of the COVID-19 pandemic, but fixed expenses like rent and utilities still need to be paid. As businesses reopen, new restrictions like capacity limits and other strict guidelines may continue to impact your revenue while also increasing your operating costs.

Retailer loans can be used for more than navigating the challenges faced by retail businesses-they can also be used to grow or expand your business, such as:

• Upgrading equipment: Up-to-date point of sale and inventory management systems can help you improve inventory control and provide a better experience for your customers.
• Updating your website: Building a website that allows you to respond to customer inquiries and sell orders online both locally and internationally can help you get ahead of your competition during and after the COVID-19 pandemic. Don't be afraid to hire an agency or web developer to help you build or update your website if you aren't confident in your own web development abilities.
• Setting up online order fulfilment: Create a workflow where you fulfill online orders and ship packages to customers across the country or around the world.
• Expanding your space: Expand to a second location, upgrade your current furnishings and fixtures, renovate your existing space to make room for more inventory, or create the facilities you need to offer online order fulfilment and shipping.
• Boosting your marketing: Embrace multi-channel marketing and create offline and online advertising campaigns to reach more people and generate more revenue throughout the year, even during slow seasons.
• Stocking up on inventory: Use your funding to purchase additional inventory for your store opening, stock up ahead of seasonal rushes, or take advantage of bulk discounts for unspoilable inventory.
• Adopting customer relationship management: Invest in a safe and secure customer relationship management (CRM) platform so you can track purchases and preferences and offer personalized promotions and service to inspire loyalty.

Retailers are often considered to be a riskier loan applicant because of factors like seasonality, cash flow shortages, and difficulty predicting demand. Here's what you need to know before applying for financing for your retail business:

• Retail businesses are particularly susceptible to seasonality, economic fluctuations, and volatile demand. This can result in inconsistent cash flow that may make these businesses seem riskier to lenders.
• Your lender may ask you to provide a business plan that explains how you intend to use your retail business loan. Business plans will always be required for SBA loans and often bank loans, but are not always necessary for alternative lenders (though it's a good idea to have one prepared just in case).

The steps you'll follow when applying for a retailer loan will be similar to other industries.

Learn more about how to apply for small business funding

As an alternative lender, Bluerock Options® can approve more retailer loans than traditional lenders. We can also approve your retail business funding faster, with funds deposited in as little as 24 hours. We provide several types of small business funding to help grow your retail business, with funding from as low $3,000 up to $500,000.

Bluerock Options® funds all retail specialties. Our expert Funding Advisors will work closely with you to determine which funding option will help you achieve your goals without compromising your business’s cash flow.

Thanks to the ongoing realities of the COVID-19 pandemic, this year's holiday season will look very different from any we've seen before, especially for retail business owners. As shoppers continue to favor shopping online over browsing and buying in-store, the plans you so carefully made earlier this year to generate more foot traffic-and more revenue-this coming season have gone completely out the window. So what do you do now that the holiday season is just around the corner?

A recent report by Think With Google indicates that the pandemic will affect how half of shoppers plan to shop for the holidays, but exactly how shopping habits will differ this year is unknown and difficult to predict. This makes it very tough for retailers to plan for what is often one of the busiest and most profitable times of year.

Here's what the Think with Google report predicts:

1. Changes in demand: Demand is especially difficult to forecast this year-pent-up demand may make people more willing to buy, but on the other hand, many people have less to spend thanks to business closures and job losses. One thing is certain: shoppers will be buying more online this holiday season, whether for delivery to their doorstep, curbside pickup, or buy online pick-up in store (known as "BOPIS")-47% of planned shoppers report that they'll use options to buy online and pick up in store or curbside, and 53% of shoppers saying they'll choose to shop at stores that offer contactless shopping.
2. Prioritizing local businesses: According to Think with Google, 66% of planned shoppers will shop more at local small businesses than last year, especially as interest in curbside pickup grows and shipping and delivery systems for larger retailers are stressed.
3. Fewer shopping trips at different times: 80% of planned shoppers intend to consolidate their shopping to make fewer trips than in the past, and 70% of shoppers say they will plan their shopping earlier to avoid crowds.
4. Shopping for deals: Reductions in household cash flow may drive more customers to shop for deals than previous years.

While most retailers begin preparing for the holiday season as early as spring, this year's far-from-usual circumstances may have left some business owners unsure how to plan. Whether you're starting from scratch or modifying your pre-pandemic plans, now is the time to make sure you have all the kinks ironed out-not in November when holiday shopping will be in full swing.

With shoppers more discerning about how and where they spend their money this holiday season, the last thing you want to do is disappoint those who do shop with you. That means that your ability to provide a seamless online shopping experience or high-quality (ideally contactless) services-and then deliver packages on time-will be paramount in 2020, especially as the pandemic continues.

Here are 8 things to consider when planning for the 2020 holiday season:

Most inventory decisions that impact holiday performance are made months before the festive season looms, but this year's unique challenges may have made planning and managing your holiday inventory even harder than usual: changes in the shopping environment and the general shift towards online purchasing may make it tough for retailers to move holiday inventory purchased earlier in the year, but on the other hand, supply chain challenges and shipping delays may prevent retailers from accessing the inventory they need for the holiday season. Despite these challenges, accurately managing your inventory is more important than ever in 2020.

67% of shoppers say they plan to confirm online that an item is in stock before going to buy it, so as a retailer, one of the best things you can do for your shoppers is to provide an easy online shopping experience that clearly specifies if an item is in stock before customers make a purchase.

Many retail businesses hire additional staff to help out during the holidays, but physical distancing regulations and capacity restrictions may make it tough for you to have more employees in your store at one time. If you have a physical location that can't accommodate a larger staff, ask what you can do to make it easy for people to shop without stressing your employees, such as encouraging shoppers to buy online and pickup in-store or scheduling personal shopping appointments.

If you do plan to take on additional staff, you should also give some thought to how you will keep your employees safe and healthy. Consider your PPE needs, whether staff can safely physically distance, or if it's time to install plexiglass safety barriers around your checkout area.

According to Think With Google, more than ⅓ of shoppers who normally shop in store for Black Friday say they won't this year. Chances are, many holiday shoppers will continue to avoid in-store shopping throughout the season, but there's no way to accurately predict what the holiday season will bring. Use these next few weeks to create a plan for how you'll maintain physical distancing in your store (assuming you'll have more visitors than you currently do), and consider creative ideas for limiting the number of people in your store, such as:

• Offering free local delivery
• Specifying one-way aisle traffic, installing floor decals and hanging signage, or widening aisles to permit social distancing
• Altering your floor plan and merchandising to encourage a quick in-and-out visit rather than enticing people to stay and browse

Is your business usually busier at certain times of day? If so, can you do anything to reduce or redistribute your foot traffic throughout the day, such as offering curbside pickup or free local delivery? Shopping by appointment or scheduling pickup windows can also help limit in-store foot traffic during peak hours.

In addition to shopping more online, people may opt to begin their holiday shopping earlier this year, especially if they typically leave their gift-buying till the last minute. Getting an earlier start gives shoppers more time to account for longer shipping estimates, wait for items to come back in stock, or find alternatives in case the items they want aren't available.

To take advantage of early bird shoppers, some big box retailers have already started offering holiday promotions in a bid to encourage safe social distancing and avoid crowds looking for deals.

For smaller retailers, creating a strong, easy-to-use e-commerce website, or a least a place where local visitors can review (if not purchase) your products online, can make it easier for you to reach these customers and take advantage of changing patterns of demand.

With more people buying online, there will be greater-than-usual stress on delivery and shipping networks around the world. To make sure your customers have a good experience, clearly communicate shipping timelines and consider adding a liberal buffer in case there are delays, especially as you get closer to the holiday season.

Curbside pickup is also a good solution for local shoppers.

Whatever delivery method you opt for, now is the time to prepare for the expected surge in online shopping by making sure all your employees are trained on how to prepare packages for shipment, as well as how to handle BOPIS or curbside pickup.

Retailers should also factor in shipping costs when planning for the holiday season-parcel shippers like UPS and FedEx always add holiday surcharges, but these surcharges will likely be higher this year as global shipping networks are taxed by surges in residential drop offs. USPS has also announced that they'll be adding holiday surcharges for the first time ever in 2020.

Is it easy for your customers to reach you with questions if they aren't coming into your store? Setting up a chatbot on your website or on Facebook Messenger makes it easy for customers to contact you, and can be a vital channel for helping potential customers get answers to simple questions about your business, such as hours of operation or delivery options.

Advertising your business on social media and other online platforms can help get your business in front of new eyes or remind past customers that you are around to help this holiday season. Social media ads are a great place to highlight features like contactless purchases, curbside pickup, or local delivery to help buyers make purchases with confidence.

Shoppers may also be more easily swayed by promotions this year, especially if they've experienced a decrease or loss of income. If you run a sale or promotion, advertise it to your audience so they know there are deals available.

From building a website to training your staff on how to fulfil online orders, adapting to the unknown reality of the 2020 holiday season requires working capital. If you've been operating under restrictions and have experienced a decrease in revenue or don't have the cash flow to promote your business or invest in holiday inventory or new strategies to manage foot traffic, there are many funding options available to you, including federal and state funding and alternative online lenders like Bluerock Options.

Alternative lenders offer a number of advantages for businesses impacted by COVID-19, including:

• Easier qualification criteria with less paperwork to gather
• Faster review and approvals, with approval in as little as 2-5 business hours and funding in a little as 1 business day
• No restrictions on how your funds are used-use them for inventory, PPE, advertising, or hiring additional staff
• A variety of funding options are available to suit your business's needs, including merchant cash advances, small business loans, invoice factoring, collateral loans, and business lines of credit
• Businesses with low credit can receive funding. Instead of focusing on your credit score, our Funding Advisors will review the overall health and potential of your business
• Businesses in high-risk industries can also receive funding

There's a lot we don't know and can't predict about the 2020 holiday season, but there's one thing we do know for certain: people will be buying more online.

As a retailer, the most important thing you can do to ensure your success this holiday season is to make sure you have a functional, easy-to-use e-commerce website with up-to-date inventory information so you can easily sell items to customers in your area without relying on foot traffic, or even connect with new buyers around the country. If you don't sell items online, make sure potential customers can find all the information they need about your product or service online-almost 75% of shoppers say they will browse online for gift ideas, not in-store.

Retailers should also:

• Offer curbside pickup or contactless buying if they aren't doing so already.
• Update their website and social media profiles regularly with current hours of operation, special and promotions, and any other information their customers might find useful.
• Consider how to manage crowds. What can you do to enforce or maintain physical distancing in your store? Can you realistically limit how many people are in your store or facility at any time? Is it time to adopt floor decals or one-way aisles? Should you hire staff to help ensure proper mask use before shoppers enter?
• Promote early and often. Many shoppers are likely to be more cost-conscious this holiday season, and they may be more motivated by a good deal than in previous years. If you do offer a promotion, advertise it early and remind your customers often so you stay top of mind.

Many retailers may not have the capital they need to get ready for the upcoming holiday season. Federal and state funding options are available, but many businesses have already exhausted these funding options. If you've run out of federal funding or didn't get approved in the first place, you still have a number of options, including alternative online lenders like Bluerock Options.