The future of shopping after the global crisis .

14/05/2020  FINANCIAL TIMES BOARDROOM with Mary Portas, retail expert and Helen Dickinson, retail consortium.

Shopping is a social activity and people will go out to spend. China saw a huge surge in sales after lockdown followed by a sharp cut back and this will happen in the UK-a boost/spike then a ping back.

There is a shift towards feel good luxury goods and items that will make customers feel safe/comfortable with an overall sense of health and wellbeing.

Big retailers need to grow digital presence. Businesses must not go quiet but build relationships back, feed desire, share customer values, community and loyalty . Plan physical space not with stuff- too much stuff , more social space. Reinvent. Encourage new customers. Retail will be a laboratory -adapt, test, change. People do not want to be sold too but to buy into your offer.There is a big role for a shop window -communicate your message.

Question – customers have made savings during lockdown, will this be spent in retail? No – this saving if any has been used to pay off credit and loans. Retail spend on the high street was 31% down in early March, and after the spike, will be down 20-40% over the next few months.

Retailers must understand how people feel. (they want a vaccine and feel uncomfortable shopping non food.) Wellbeing is their concern. People want to buy into stuff that makes them feel resilient and comfortable. (Stuff being Marys word! Love it)

The mood will be cautious after the initial feel good spike. Essential retail had to learn as they went and what evolved over the weeks was the importance of the customer feeling safe. Those closed businesses must learn from the essential retailers and prep ready for opening with the key dates June 1 and July 1. 

What will the customer be expecting ie queueing systems, handling of product, fitting rooms….Queueing systems offer a huge opportunity with stylists queue walking. Retail must offer a greater service level once the customer is inside – spend x2.5 more than online. Also invite the customer back regularly with small drops of new product throughout the seasons-is this the end of x2 large season drops?  Improve the look of product with lighting and colour.

We must remember that the customer is leaving the comfort of a safe home.

The weaker businesses before Covid 19 will fold. We will see more inventive retailing. In 5 months we will see change that would have taken 5 years and physical and digital working side by side.

Answers to questions.

-Local councils must support small business with access to grant schemes and offer confidence within the local community.

-Uk is difficult to compare with China. China is all about luxury product but we can learn the power of a BRAND.

-Can the store only model work now? No. Omni channel is the future .

A very well thought out and informative presentation.