As we happily look at 2020 in the rearview mirror and consider how to refocus, revive and re-invigorate our businesses for a new year, major recent news stories can serve to guide our thinking. Here are three relevant topics that are important for co-ops to address in 2021.

E-commerce will only grow

E-commerce was a must-have business segment in 2020. Driven by COVID-19, according to Mercatus, e-commerce increased from 4.3% to 10.2% of overall grocery sales in 2020. In an NCG e-commerce survey, 104 members reported their e-commerce sales to us for November 2020.

In the whirlwind of needing to quickly adapt their business model to the pandemic, co-ops may not have considered the profitability of online versus in-store purchases. In 2021, gaining an understanding of the all-in cost of e-commerce sales will be important so that overall margin can be maintained by assigning appropriate resources and pricing. As an example, NCG’s survey revealed that only 42 members instituted a fee for curbside pick-up orders, although the picking costs alone for e-commerce sales make their all-in cost much higher. In comparison, most national e-commerce sites (including Instacart and large chains) have either instituted a shopping fee or an added markup to items offered online.

According to Mercatus, e-commerce in the U.S. grocery market is expected to grow significantly through 2025. As consumers become accustomed to the convenience of shopping for groceries online — and paying for it for non-Amazon purchases — it is recommended that stores reflect on whether their e-commerce solution is a good fit for their cost structure, understand the profitability of this revenue stream, and consider adjustments to their product mix and instituting a surcharge to cover additional costs. NCG’s E-commerce Rapid Response guide offers more resources.

Post-PPP, operating cash must be king

Most cooperative grocery stores availed themselves of the Paycheck Protection Program (PPP) in 2020 and began the process of forgiveness before year-end; several members received confirmation of their loan forgiveness in December. Even though the federal government passed additional PPP funding in late December, managers must not operate as if magical funding will continue and save us from actively managing our operating cash flow. It is our responsibility as managers to know and understand our cash flow, and monitoring cash flow is a good habit to adopt.

If you’re not already doing so, the start of a new year is a good time to begin actively managing cash generated from operations. One lesson learned from 2020 is that managers must learn to expect the unexpected, and agility is essential to steering through unexpected events. Having a good grasp of current and expected cash flows is a prerequisite for business agility.

Cybercrime is at an all-time high

The December 2020 computer hacking of several federal government agencies is a good reminder to not take for granted the safety of your store’s data and computer systems. Cybersecurity is important even for small businesses, which are hit especially hard by fraud (including cyberfraud), with an average loss of $1.1 million and median loss of $150,000 per case (according to the Association of Certified Fraud Examiners).

At a minimum, see the new year as an opportunity to change all of the passwords for your store’s computer and software systems. Give each system a separate password with sufficient complexity (letters, numbers and special characters) or a passphrase (a string of multiple words or a short sentence) to make it harder for a bad actor to take advantage of weak, old or multiple-use passwords. You might also consider implementing multi-factor authentication, requiring users to have a password as well as an approval on a separate device when logging into servers and email accounts.

Additional actions to improve cybersecurity include conducting cybersecurity training for relevant staff and conducting an IT audit to take stock of and identify weaknesses in your store’s IT security. For more recommendations, read our article Top Ten IT Security Tips.

One thing is certain: Expect uncertainty to continue in the new year. As business managers, we should continue into 2021 with the urgency with which we made decisions in 2020. Take to heart the advice from Progressive Grocer: Don’t fall back into a pre-pandemic decision-making mindset, and don’t put off making hard choices until some future time. With the possibility of the end of the pandemic in sight, we should be using what we’ve learned in 2020 to bolster our co-ops so that they remain strong through 2021 and beyond.