After the unprecedented impact of COVID-19, the retail industry faces different challenges: the changing currents of consumer behavior, market dynamics, and technological innovations that have reshaped the retail landscape. From pre-pandemic strategies to post-COVID adaptations, we’ll delve into noticeable shifts, challenges, and opportunities that redefined this transformative year for retailers worldwide.
Retail Industry Trends 2020
Trend #1: Digital Retail / Ecommerce Going Strong
Digital channels continue to be the source of most retail growth. Due to public health concerns, e-commerce seems like a safer way of shopping for most consumers. Consequently, retailers can expect an increasing demand for delivery services.
Nevertheless, the relevance of physical retail stores persists. The emergence of BOPIS (Buy Online, Pickup In-Store) options presents advantages for retailers with brick-and-mortar locations and customers seeking immediate product access. Moreover, physical stores remain pivotal touchpoints in the sales journey and customer experience.
Trend #2: Growing Public Health Awareness
The worldwide pandemic has profoundly impacted us all, notably raising public consciousness regarding health and safety concerns. For retailers, prioritizing customer well-being is paramount. This entails promoting health-conscious products and maintaining a sanitized retail environment to instill confidence in shoppers’ choices. Likewise, reimagining human capital is essential, with larger retailers considering touchless automation for stores and warehouses. Additionally, integrating sanitation stations can enhance overall personal hygiene in the workplace, ensuring the safety of employees.
Kuusoft’s Digital Hand Sanitizer Kiosk is made for public space and essential workplaces. Integrating a motion-sensor hand sanitizer dispenser with the powerful NexSigns digital signage software, retailers can achieve multiple objectives:
- Reduce the risk of virus transmission and enhance employee hygiene protocols.
- Employ digital signage to establish seamless communication with customers and employees.
- Share the latest marketing campaigns, seasonal offers, and latest deals with digital signage.
Trend #3: Redefine Brand Loyalty
In the last five years, the retail market sees an increase in consumers’ brand loyalty. Most consumers demonstrated they prefer one brand to another. However, due to the scarcity of certain products during and after COVID-19, consumers would trade up and down, thus spurring trials in new brands.
With brand loyalty shaken, retailers have a chance at redemption. How brands connect with consumers can impact spending habits. This is crucial especially for supermarkets, where proximity drives choices. How can supermarkets help shoppers navigate during the pandemic?
With NexSigns digital signage solution, retailers can establish their brands by sharing their values and vivid campaigns with shoppers without hassle. Moreover, digital signage allows retailers to update their content anytime to showcase relevant campaigns tailored to their customers’ preferences. Through interactive elements, digital signage can foster direct engagement with customers, reinforcing branding identity and creating memorable experiences.
Trend #4: Flexibility in Labor and Human Capital Utilization
Human capital capacity in retail industries calls for new models of collaborations between retailers. Small, cross-functional teams can respond to uncertainties much more effectively. And a flexible, fluid labor pool can meet demand across priority activities. A well-connected information hub guarantees real-time updates on data pool, allocating human resources as needed. NexSigns solution has the power to process multiple data sources and deliver on one screen. In the corporate office, digital signage can assist data analysis and decision making.
Additionally, by keeping front-of-house (FOH) and warehouse staff separate, retailers can lower the risk of contamination. This also means providing more protective gear to FOH staff. How can front and back staff communicate effectively? A display system in the back office can improve communication between these two areas.
Trend #5: A shift to value for money.
In any economic downfall, a post-crisis downturn will lead consumers to demand value for money across retail sales sectors. This phenomenon can back up the shock to brand loyalty. This shift to value for money is already happening in essential categories.
For high-end luxury, apparel, and fashion retailers, their brands may suffer during this period of time. Partnership with smaller players in the field, as well as different platforms, can open up new markets and customer services for high-end brands. With that said, marketplace consolidation may seem inevitable for certain retailers.
How can retailers in essential categories cope with this shift to value for money? Explore opportunities to strike new deals with healthier players regarding certain industries and supply chains. Our retail industry is in the process of washing cards, and retailers can make moves that benefit them in certain ways.
Conclusion
We expect changes in the retail space this year, and these changes will be closely tied to the progress and impact of COVID-19. Amidst the uncertainties coming with the global pandemic, retailers can still make decisions that would ameliorate customer satisfaction and workplace well-being.
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