In the wake of unprecedented challenges due to the Covid-19 pandemic, retail communication specialist VoCoVo sets out predictions for upcoming retail trends businesses need to consider for 2021.
The retail trend predictions are based on the significant industry changes the VoCoVo team witnessed in 2020 and include:
Less footfall means more emphasis on customer experience
Due to consumers’ shopping habits having been forced to change by the pandemic, retailers will need to put greater focus on the experience they provide their customers to encourage them to spend money in stores. With 39% of retail workers believing the biggest challenge their store faces is improving customer service, ensuring retailers have a clear strategy to encourage this in 2021 will be key. A more memorable experience will also encourage customer loyalty and repeat business in an ever more competitive environment.
Increased demand for click and collect will force retailers to refocus operations
The pandemic has led to a greater amount of people shopping online and via click & collect services. The expectation is this will continue next year. Retailers will need to focus on how to make their operations as efficient as possible due to the increased pressure on these services; potentially by moving staff into positions or creating new roles to help deal with the increased demand. With 42% of retail workers looking for better training and clear development paths to feel more empowered, it could open up new opportunities for workers in their retail careers.
Investment in disruptive technology will dip as retailers prioritise the basics
Many retailers will have previously flirted with investing in emerging technologies such as VR and AR to improve customer experience. However, what’s clear heading into 2021 is that the majority of retailers will need to rethink technologies with little proof of concept. Instead, the focus will shift to deploying and utilising critical technologies. For instance, those that improve staff efficiency and enhance operations.
Pre-pandemic, staff would only cover service desks during peak trading hours for the majority of retailers. Expect to see use of technologies such as call points to speed up the ordering process during more times of the day. Retailers will also benefit from using headsets to enable quicker internal communication. Almost half of retail workers cite this as a potentially effective solution to being more productive in the workplace.
The demise of window shopping
The accelerating trend towards online shopping is leading to customers spending less time ‘window shopping’ and browsing in-person. This will force retailers to improve their customer response times to make the most of reduced contact time. Especially considering that currently, nearly one-fifth of staff take longer than three minutes to answer a customer query. This will be even more important for shopping centre retailers. They are likely to see decreased footfall due to more consumers going to local stores during the pandemic.
Moreover, a greater number of shoppers are now researching online before making a purchase in-store to expand their knowledge. Staff will need to ensure they are clued-up on their products to provide a positive service to informed consumers.
The birth of the connected store
Large retailers will be able to bring stores together, regardless of the distance between them. This will allow colleagues to stay informed on wider business decisions from head office. They can also maintain connections with colleagues in stores around the country; helping to build multi-store networks. Head offices will have greater transparency of operations across numerous stores and will be able to send relevant communications to several locations at once. Connections between systems will also lead to more effective physical security measures. Plus, smarter re-stocking capabilities within each store.
Commenting on the retail trends is Martyn Jones, chief commercial officer at VoCoVo.
“2020 has changed the retail landscape. Consumers have been forced to shop differently. Now retailers are tasked with responding to new buying habits, many of which we’re already starting to see take shape.
“Shoppers are more informed than ever and their use of technology in the buying cycle has only accelerated because of 2020. To keep up, retailers need to constantly review their operations to ensure they meet ever-evolving customer demands.”
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