In an article released by IGD last week they highlighted key trends they thought would ‘shape global retail in 2021’ and having had a look through them, we tend to agree.

‘Driving online profitability, creating safe shopping spaces, and bringing the out-of-home experience in-home’ were among them and in this post, we’re going to take a closer look at some of them identified as ‘stand out’ for businesses to focus on this year.

 

System upgrade: digitally enhancing operations

The pandemic created an acceleration of the shift toward a digitally focused economy and 2021 is set to continue this shift. As Head of Innovation and Futures at IGD, Toby Pickard put it “The pandemic has accelerated retailers and shoppers’ digital awareness and capabilities. Numerous companies have been testing and learning from new digital initiatives, and in 2021 companies will need to move beyond this to improve and implement at scale. Digital transformation will require new leadership and a fresh cultural mindset as companies create flexible and agile ways of working.”

Embracing this change and adapting to it is what is required of businesses in 2021. IGD broke the 3 areas within this trend down to:

  • Introduction of digital technologies that have a low capital investment and are easy to update
  • Partnerships with third-party technology providers to speed up new tech introduction
  • More use of machine learning and artificial intelligence at store level to drive revenue and increase customer satisfaction

 

Escalating ecommerce: driving online and profitability

Every single person has been in the crosshairs of this during 2020 and now even into 2021. Lockdown followed by lockdown has left retailers and shoppers alike with very little option but to venture into the world of shopping online. Multiple reports have indicated that the shift towards shopping online has been brought forward by at least five years.

When looking at this trend specifically Toby Pickard said: “With many shoppers using the channel for their large weekly shop, we have seen retailers focus on enhancing the pickup, or click and collect, experience to help improve profitability. This has included adding more collection slots, expanding order staging areas and parking bays and ensuring a contactless experience. While the initial surge is receding, online penetration is expected to remain at a higher level, compared to pre-crisis.”

We see this happening across all of retail, not just the food industry. Having the capability to allow for click and collect my just be the thing that helps bricks and mortar stores survive. People will inevitably continue to lean on online first as a way to discover new products but having an option to either have it delivered or collected in a store may give you what you need to stand out amongst your competitors.

IGD broke the 3 areas within this trend down to:

  • Retailers seeking to reduce their overall operating costs to accommodate online, improving processes and automation
  • Encouraging shoppers towards click and collect
  • Retailers assessing the options for rapid delivery, for example the same day or in a few hours

 

Holistic health: supporting health and wellness

The pandemic has brought home the seriousness of maintaining a healthy lifestyle and it is easy to see why this is going to be a trend that grows in 2021.

Eco-concise retail was a big trend in 2020 and the desire to reduce your impact on the environment was a lifestyle that started to gain traction. 2021 sees this go one step further and consumers are looking inward at what they need to do for themselves, as well as keeping their carbon footprint at the forefront of their decisions.

As Toby Pickard puts it “Health and wellness naturally became more important to everyone in 2020. We saw a wide range of activities from retailers as they aimed to encourage healthier lifestyles. We will see more retailers educating, informing and rewarding shoppers for living healthier lives. Companies will look to champion both their health and sustainability credentials, as the two key trends merge, of their existing and new products. Personal health will increase in importance, but ultimately affordability may take precedence during economic downturns.”

Bringing these credentials to the front of what you do and creating content that talks to the consumers wants and needs will help you build relationships not only with existing customers but will open you up to a new audience.

IGD broke the 3 areas within this trend down to:

  • Greater focus from shoppers on hygiene and sanitation products for individuals and the home
  • Retailers and brands trying to differentiate themselves by helping shoppers and consumers live healthier lives
  • More tailored solutions in-store, either through assistants or using digital tools like apps

 

Recuperative retail: focusing on sustainability

Climate change has been on the radar for years and years and it continues to be at the top of a lot of peoples lists. When commenting on sustainability, Toby Pickard said: “Climate change will remain a top priority in 2021, as it is recognised as the most likely source of major future disruption. While there will be much focus on how sustainability supports the climate change and resilience agendas, we will also see initiatives to build trust and loyalty with shoppers.”

Showing customers how you’re doing your bit as a business to fight climate change will inevitably help you build trust and for customers that have this as a high priority as part of their purchase decision, you’re appealing directly to their core values.

IGD broke the 3 areas within this trend down to:

  • With climate change remaining a top priority, we expect retailers globally to push ahead with initiatives to support goals in this area
  • Continued implementation globally of initiatives to reduce plastic and food waste
  • Initiatives to build trust, loyalty and better relationships with shoppers, staff and communities

 

Knowing how and where you can use these trends as part of your strategy in 2021 will help define what your success may look like during the year.

At Eclipse we have teams of experts that work on Customer Experience and Strategy and we can help you shape these trends for your business. All it takes is for you to reach out to us and we can start looking at how we can help you ensure success in 2021.

If you want to take a closer look at the release from IGD, you can head over here to check it out.