As many ‘non-essential’ shops around the world are opening, we’re looking ahead to what we can expect from the retail landscape in the foreseeable future.

TAKING OUR REVENGE

We’re sure retail guru Mary Portas wouldn’t say “I told you so”, but during her appearance in the Financial Times virtual Global Boardroom recently, she did predict a market surge when the shops open - and with footfall in England up by 38.8% last week (data compared to prior week from Springboard) and huge queues seen outside stores like Primark, she was certainly right. There’s a name for it too: ‘revenge shopping’. As customers, we’re getting our own back after months of stores being shut! Once that urge has been fulfilled though, the initial wave is followed by a sharp snapback, when shoppers are much more careful with their money.

We’ve seen the pattern in China and recent figures from GlobalData support the short-lived nature of such a boost too. They say COVID-19 will leave behind a £37 billion deficit in 2020’s non-food spend and when faced with this, what can brands do to encourage customers to maintain or increase their spend, especially if caution is going to be king in the medium term?

*Left:* Queues form at Primark at the Rushden Lakes shopping complex after reopening following closure due to the coronavirus outbreak (CREDIT: David Rogers/Getty)
*Right*: Customers queuing outside Harrods on the day it reopened (CREDIT: Matt Crossick/PA Wire)

FEEDING OUR WELLBEING, COMMUNITY AND CONNECTION

Over the past couple of months there’s certainly been a spending shift mirroring what’s important in our lives, with the purchase of smaller treats to make ourselves feel good - accessories, beauty or things that feed a sense of wellbeing, so watch out for retailers tailoring their offerings.

It’s also time for brands to focus fully on deepening customer relationships. Here at tickety boo, an essential part of our approach is helping brands make an emotional connection with customers and our take is this will become even more important. People will be more likely to buy from brands who share their own values, with customer dialogue and genuine communication across all touchpoints being key. Brands will need to put themselves in the shoes of the shopper more than ever before, to understand how customers are living and feeling in the post COVID world.

Will people look to brands who they believe have acted responsibly to both customers and their own teams during the COVID crisis? Will local High Streets see a rejuvenation, as shoppers want to stay closer to home? We suspect the answers to both of those questions is yes, and it will definitely be interesting to see how it plays out in the coming months.

LET’S GET PHYSICAL

The need for brands to be thinking about the new ways people are living and feeling is especially true when it comes to the physical retail space. We’ve all seen the large queues outside certain stores, but how do you really feel about going shopping? YouGov polling suggests only 40% of us are comfortable to go back in to clothes shops, and with 39% of us saying it’s too soon for stores to be open at all, the retail focus is bound to shift to how customers are connecting with the space when they do head to the shops - and whether they feel safe in it. We anticipate:

The evolution of queuing

With people waiting longer before getting inside their favourite store, brands will undoubtedly be looking at how to create an ‘experience’ outside. Will brand ambassadors chat to shoppers in the queue at a safe social distance? Could product sampling happen safely whilst you wait? Selfridges has already said it will offer queue-side entertainment, with Store Director Maeve Wall telling The Guardian they’ll be bringing more “life and joy” for customers who come to store.

We also love the creativity of Trader Joes, with their ‘look for the good’ giant wall of post-it notes. Customers can add what they’re thankful for onto the wall while they queue outside, and it’s a great way of making a personal connection with customers. Floor stickers (we love the ones by Folkstone-based card retailer, Objectables) are a great opportunity to take a safety precaution and raise a smile and with social distancing measures in place, creative ideas, in store messaging and brand tone of voice will become even more important in bringing personality and connection to the customer experience. That’s something we’ll definitely be helping our clients with.

The redefinition of the shop window

Retailers are now faced with a window of opportunity – quite literally! Shoppable windows are on the rise, with customers being able to order what they see there via text, or online. Purchases are delivered direct to cars or put aside to collect, and we fully expect brands to begin asking themselves whether their shop window is working hard enough.

Lone Design Club’s ‘Phygital’ shop front. Credit: LDC

A reflection of health and wellbeing concerns in store

With only 48% of us thinking we’ll be able to stay the required two metres away from other shoppers (GlobalData), the focus is firmly on brands to create a space that feels reassuring. Whilst people don’t necessarily want to stay home continually, there’s no place like it from a safety perspective, so brands need to create that same secure feeling in store - considering everything from maintaining social distancing to welcoming colour and light. We’re not expecting to see non-food brands following Burger King Germany’s example of social distancing crowns (they did make us laugh though), but if brands can reflect security on a number of different levels, their physical spaces will feel more inviting to a wider range of shoppers.

We’re already seeing large and small brands setting out their new normal to try and address some of these concerns - stores being reimagined as showrooms, hand sanitisers in use at store entrances, one way directional signs, contactless payments, the closure of cafes, makeup counters and in some cases toilets, and changing rooms being handled in a new way. John Lewis and Primark have decided not to open their fitting rooms at all, but Selfridges is... sanitising and quarantining any clothes and shoes for 72 hours, before returning them to the shop floor.

What is clear is that now is definitely the time for retailers to think through every touchpoint; to adapt, to trial and to test. It remains to be seen how nimble larger brands will be able to be, but one thing’s for sure - they definitely need to try or some simply won’t survive.

LET’S GET DIGITAL

It’s no surprise that 44.8% of UK consumers have spent more online as a result of the Coronavirus lockdown (GlobalData) and stores like Selfridges say their online sales have doubled since its physical shops closed during lockdown. Digital is only going to become ever more crucial in our new retail world, so whether it’s making sure brands are truly omnichannel, or thinking creatively about the fusion between digital and physical, retailers need to make sure they’re innovating.

Beauty is an interesting case in point, but with the days of beauty demos in store behind us for the foreseeable, what’s the alternative? Estée Lauder has launched a skincare experience on WhatsApp, with an artificial-intelligence character, Liv, who’ll build a personalised skincare regime for you and make sure you stick to it. Selfridges is offering online beauty appointments and many brands are focusing on customer education – creating tools to show us how to successfully demo products ourselves.

Let’s consider the virtual social shop window too, with Instagram adding shopping features allowing customers to buy from their brand of choice without ever leaving the platform. Now that’s what we call convenience!

Again, relative success or failure will be about anticipating customer need and looking for new ways to respond to it, and that’s the case for all retailers - whether online or on local or larger town centre High Streets.

Ultimately, people will shop where they feel safe and understood. Some retailers won’t survive, but we believe the future will bring better, more creative and more inventive retailing – and that has to be a positive step.

The future of retail