Report outlines trends, priorities for retailers in 2021
The COVID-19 pandemic will boost convenience retail, with a strong consumer appetite for health products and high in-store safety expectations.
That’s according to a report from Edge by Ascential's research and data insight arm, Retail Insight, which said that the effects of the COVID-19 pandemic will have long-term impacts on the retail sector and will disrupt consumer shopping behaviors and their priorities in the forthcoming year through to 2025, according to a new report
"The COVID-19 pandemic is having a seismic shift on the retail industry, and its effects are likely to be permanent,” said Xian Wang, Global Content Director at Edge by Ascential. “For brands, the focus must be on global flexibility and rapid product delivery, as there is no doubt that fast-paced and agile manufacturers will dominate trading. Brands that master flexibility and can operate across multiple digital platforms and touchpoints will benefit greatly and will be the ones that ultimately stay top of mind with shoppers."
Some of the key trends and priorities outlined in the report are below.
• The shift to online and increase in convenience: The shift to online will also have an effect on in-store shopping behaviors, as convenience and proximity become important factors in choosing where to shop.
Brands and retailers must support this rapid transition to omnichannel shopping with flexible, transparent, and reliable supply chains. Retailers should also place less reliance on big-box formats - such as large superstores - given consumers' plans to spend less time in-store, and instead focus on bringing in-store experiences online.
• Increased demand for health trends: Consumer trends around wellness and healthy lifestyles have been further buoyed by the pandemic and will prompt retailers and brands to focus on 'good-for-you' ranges, in-store health services, as well as educational and inspirational initiatives.
Brands should also innovate around on-demand health and hygiene benefits and communicate those clearly to stand out among consumers.
• New in-store expectations led by technology: COVID-19 has led consumers to grow more concerned about in-store and product safety. As personal contact remains a concern amidst prolonged social distancing, retailers should explore ways to drive excitement and inspiration in-store through innovative merchandising solutions and the greater use of digital touchpoints.
Meanwhile, having credible information on the origin and production standard of products will be key for many brands seeking to maintain a strong on-shelf presence.