Industries across the world have been impelled to use technology and digital resources to reimagine and improve their operations. With e-commerce already on the rise, and the COVID-19 pandemic boosting online sales even more, the companies that missed the digital train have already started to count their losses. The retail industry, in particular, has seen dramatic transformations since the crisis began, and signs show that these transformations might evolve even more in the near future. As the pandemic continues to reshape both public opinion and shopping habits around the world, a key question emerges: how will retail manage to overcome the crisis and evolve?
The COVID-19 crisis has brought about a change in focus toward health and security, so it should come as no surprise that it also impacted the way consumers buy their products and services. The retail industry has seen new trends in 2020 and 2021, and the digital transformation that followed is far from over. However, when it comes to consumer expectations and trends, not all changes are as powerful, and not all include a shift to online shopping. The pandemic may still be reshaping the future, but trends in retail are now even more diverse than they were at the start of the crisis.
From Online Shops to Local Stores
While online sales are definitely on the rise as a consequence of the pandemic, local stores also seem to be enjoying a comeback. According to a study by Barclays, retailers in the United Kingdom (UK) may open thousands of local high street shops in the following months, as coronavirus restrictions are slowly being eliminated. However, some restrictions are expected to continue well into 2022, and that means retailers across the world might see new trends and shopping habits emerging in the near future. A quarter of the consumers polled for the study say the best way a retailer can attract them is by opening local stores.
One reason for this shift may be the fact that local stores are more convenient for the average customer compared to those located in city centers. According to research by the National Retail Federation (NRF), convenience plays an important role in influencing shopping decisions. NRF’s Consumer View study shows that more than 90% of Americans are likely to choose a retailer based on convenience, and they also expect retailers to do their best to help them save time and effort.
The Meaning of Convenience Is Changing
The leading role that convenience is playing in reshaping shopping decisions may be no surprise in itself, but the fact that the actual meaning of convenience is changing is actually surprising. The high demand for delivery services like Amazon Prime, Shipt, or Instacart points to the fact that US customers are willing to pay for convenience, in its traditional meaning—saving time and effort. However, NRF’s Consumer View study also shows that the meaning of convenience differs based on how customers shop, where they are along their path-to-purchase journey, and what products or services they’re actually buying.
If the emergence of local stores is one trend linked to convenience, another such trend is the rise of shopping apps. Almost every supermarket offers one, and apps, in general, are useful tools well beyond online shopping. They are a good way of keeping up with different offers, deals, and discounts while also making shopping lists or saving favorite products for later purchases. In fact, shopping apps are so popular that most mobile users have and use them. Amazon’s app alone saw 41 million downloads in the US in 2020, while Walmart enjoyed 34 million and Wish 30 million.
Trends for a Better Future
Convenience is definitely important for customers in the US and abroad, and so is shopping locally. However, the emergence of the latter may be influenced by more than convenience alone. A recent Accenture survey shows that consumers are now shopping mindfully and cost-consciously, but also that local, sustainable, and valued brands are becoming more and more popular. 56% of consumers are making their purchases in local stores or buying more locally sourced products, according to the research, and many of them also plan to continue doing this for years to come.
Maybe even more important is the fact that consumers are also taking action to reduce food waste and tend to make more environmentally-friendly, sustainable, or ethical purchases. Many of them also say they want to continue doing so after the end of the pandemic. As the COVID-19 crisis continues, however, it’s still too early to tell exactly what trends will reshape industries across the world in the years to come. Retail will most likely continue to change, and as it does, it might also help customers not only enjoy a better shopping experience but also take a firm step towards a better future.
