What has been happening in retail? Autumn 2020
The last few months have shown that physical retail will not function the way it did before. Digital is where it is happening and this means the role of the store will have to change.
The pandemic is speeding up trends that were already in play – some stores were always going to close even without lockdown. Retailers that are interested in expanding or launching their physical presence are doing so. Physical retail is still king and will process more than x 3 sales than on line channels.
The store is now seen as a relationship builder, an emotional connection to the brand with one to one services and in store experiences becoming the norm. Rather than sales, the focus is now on relationships, creating that connection with new consumers and reconnecting with the old. However, research in October revealed that 84% of consumers will continue to minimise visiting businesses in person over the next 6 months. A high stat for the bricks and mortar retailer – who must respond quickly, offering customer service second to none and an in store experience like no other. Kerb side pick up is also key, as is direct from brand channels of fulfilment thus marrying the online and offline experiences.
One of the positives that have come through from the pandemic is local shopping.
Google searches have grown 500% yr on yr with the term – near me thus demonstrating an appetite to shop local. Independents have the lead in agility, flexibility and speed to maximise the pivots and shifts in consumer behaviour and products stocked only in these stores provide an element of uniqueness – a point of difference. 33% of consumers think its more important that the goods they buy are locally sourced. Now is the time to reward these loyal customers , to hold onto them with loyalty schemes, high standards of customer service and a seamless market journey – make their retail experience special and worthwhile.
During the Autumn staying in has become the new going out as hospitality and social restrictions interrupt party plans. Retail has seen growth from consumers spending on elaborate dining, loungewear, bar carts and food and drink subscriptions. Handmade and craft across gifting and decoration has also shown signs of strong growth. However, uncertainty for the future continues as 44% consumers think they will spend less on gifts this year and Black Friday was not as strong as anticipated showing a 2% decline on average order value.
The uncertainty of the last few months has left many individuals questioning the festive period whilst large family gatherings may no longer happen, how will we spend our cherished time?
There is no doubt that with so many challenges for both the retailer and the shopper that this golden quarter is going to be like no other for the high street.
Have you heard?
Collins dictionary has named lockdown as the word of the year defined as – the imposition of stringent restrictions on travel, social interaction and access to public spaces.
Added note – 2nd December 2020
Local restriction tier system put in place by the Government as Coronavirus cases rise. This now has become a real challenge for the retail golden month Good luck all.
Added note – August 2021
Staffing crisis
The pandemic recovery is losing momentum as businesses are trying to cope with staff shortages and delays in getting supplies. The haulage industry is struggling to find enough HGV drivers to keep the economy moving and many businesses are operating on reduced opening hours as isolation rules continue.
