The coronavirus crisis will have an impact for a long time to come in the retail sector. This may be a threat, but it also offers new perspectives: many companies see opportunities to adjust their business model. Resilience is high, ‘back to normal’ is no option.
1. A new shopping experience
Safety and hygiene are now the priority in stores, and that does not always look inviting: those disinfectant soap dispensers, masks, distance rules… Moreover, traffic has decreased and therefore costs need to be kept under control. Many retailers will evaluate their store footprint and opt for fewer (or smaller) stores, but they must above all think about the vital role physical stores will continue to play.
In order to attract customers again, the experience must be exceptional: more than ever, stores will become brand ambassadors, meeting places, discovery spots… On the other hand, functional shopping can be organised more efficiently: for example with a ‘fast zone’ at the front, displaying the most popular products for hurried customers and with separate, highly visible and safe pick-up and return points. The checkout area should be upgraded to speed up traffic flow and avoid queues.
2. Omnichannel is the new normal
Even the smallest boutique has a webshop since the lockdowns, even the most sceptical consumer has now ordered online. There is no longer a distinction between e-commerce and commerce, between ‘clicks’ and ‘bricks’. Shoppers browse online and shop offline, have their orders delivered or pick them up at the store. Entrepreneurs come to the door with (electric) cargo bikes or compile their orders at easily accessible collection points.
Facebook and Instagram rae becoming fully-fledged sales channels, and livestream shopping becomes a hype. The result is an enormous range of possibilities, tailored to every need. Do not miss this express train, but watch out for the cost-benefit ratio…
3. Technology conquers the shop floor
Many measures against the spread of the coronavirus have accelerated the acceptance of new technological solutions in stores and behind the scenes. Automatic customer counters and digital communication tools are now widely used, while sensors and smart cameras monitor social distancing.
At the checkout, the breakthrough of mobile and contactless payment is a fact: typical online payment tools are now also appearing on the shop floor. More retailers are launching their own ‘scan & go’ apps. Virtual queues are a trend. Automation and robotisation are continuing their advance, both in shops and in distribution centres: cleaning robots are proving to be an enormous growth market. Virtual and augmented reality enable brands to realise new forms of experience. We are only at the beginning…
4. A boost for creativity and innovation
Retailers are now forced to reinvent themselves, develop new services and business models, listen even better to their customers. Quite a few pigeonholes have been demolished in recent weeks, and remarkable new partnerships have emerged. Decathlon appeared in the supermarket, Delhaize and Colruyt joined forces to deliver groceries to care personnel and meal delivery staff started working together with physical retailers.
Restaurants became pick-up points or started with home delivery. Fashion chains came up with virtual services, reinvented personal shopping and launched creative solutions for unsold stock. Marketers discovered TikTok’s power to reach families in lockdown. It is fair to say: despite the dramatic conditions, retailers are showing resilience.
5. Towards a more sustainable supply chain
The coronavirus outbreak and the lockdowns that accompanied it revealed a number of weaknesses in our globalised supply system. This requires retailers and their suppliers to take a critical look at the situation. In the food sector, for example, the call for local, healthy and sustainable food is getting louder and louder. Food waste is high on the agenda again.
In fashion, big names such as Dries Van Noten and Giorgio Armani argue for fewer collections, less stock, fewer price stunts… It is time to put an end to waste and to the “criminal” and “absurd” rhythm of fast-fashion. There must be more respect for real partnership with suppliers and factories in vulnerable regions. Production must become radically more environmentally friendly…
It remains to be seen how many of these good intentions will be translated into action. In any case, there was never a more appropriate time to change tack: never waste a good crisis!
