Retail trends accelerated by COVID-19

Kyle Hall — Wed, 15 Apr 2020 23:24:16 +0000

A surge in touchless self-checkout, contactless payments and of course online retail are among the trends emerging in retail as the US sector grapples with swift change in the wake of COVID-19.

These are just one of the ways the sector is radically transforming, with experts predicting there will be further changes ahead as the retail industry evolves, pivots and adapts to become more resilient.

Here’s a snapshot of just some of the trends being accelerated in retail by COVID-19.

Touchless checkout

According to a recent survey by Shenkel, US consumers are rapidly embracing touchless self-checkouts as two-thirds of customers look to change their shopping habits in the midst of COVID-19.

Their findings indicate 87 per cent of shoppers say they would prefer to shop in stores with touchless or robust self-checkout options while more than two-thirds of consumers are now using self-checkout, touchless self-checkout or frictionless micro-markets to pay for groceries.

The findings further note:

Exactly half of consumers are aware of touchless self-checkout options, where items are automatically scanned and recognized without needing to touch a pad or screen to enter their names.

Self-checkout options remain popular with nearly 75 per cent of shoppers using self-checkout to pay for groceries frequently.

Contactless payments

US consumers have traditionally been distrustful of contactless payments but that’s quickly changing during COVID-19 and the increased hygiene concerns associated with cash payments and pin pads.

According to the Futurist Group contactless payment features are now considered a necessity by 38 per cent of American consumers, a jump of 8 per cent since the COVID-19 outbreak started.

Importantly this data was sourced early in the COVID-19 outbreak on March 3 but could be an indicator contactless card usage is set to spike in the US as a result of the Coronavirus outbreak.

“What it found was that, before Covid-19 began its spread, three in 10 US adults (30 per cent) reported that contactless card payments were something they needed, while a larger share of 41 per cent said they didn’t need the feature,” creditcards.com reports.

“But data from March 3 indicates a jump to 38 per cent indicating that contactless payment is a necessity to them, eclipsing those who say they don’t need it, at 33 per cent. This represents a 26 per cent increase in the number of U.S. consumers who said they require a contactless feature.”

Online retail

Online retail was already primed to boom between 2020 and 2023, with Visual Capitalist noting it was set to become worth $6.3 trillion in the next three years.

There’s no doubt COVID-19 has accelerated that trend, with Essential Retail noting in March, e-commerce transaction volumes increased by 74 per cent.

“The rise in e-commerce sales has been particularly profound in products related to staying indoors,” they reflected.

“Compared to March 2019, transaction volumes increased by 97 per cent for home products and furnishings, 136 per cent for DIY products, 163 per cent for garden essentials, 26.6 per cent for electronics, 29.7 per cent for jewellery, and 18.6 per cent for Telco.

“Additionally, there was a 97 per cent increase in online gaming. Categories which saw a decline in transaction volume in this period included ticketing by 60 per cent, travel by 44 per cent, and online dating by 8.9 per cent.”

Meanwhile, it’s tipped the e-commerce trend will continue long beyond the quarantine of COVID-19.

“Long term, we and others in the industry predict that the shift in consumer behaviour – opting for online purchases – is likely to outlast the crisis,” Essential Retail stated.

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Six ways retailers can pivot in the time of COVID-19

Kyle Hall — Wed, 01 Apr 2020 02:32:17 +0000

It wasn’t expected, it certainly couldn’t be planned for, but now retailers are being forced to not just think outside the box, but totally build a new one in the wake of the economic fallout from COVID-19.

So, what are the top tips when it comes to rethinking your bricks and mortar business model as social distancing sees traditional retail grind to a near complete standstill?

Here’s a quick guide to strategies available for retailers to pivot in the time of COVID-19.

A diversified offering

What are the key things people are seeking right now? In most cases it’s essential items. That’s seeing some businesses up the ante and switch up their product lines.

For example, florists are now delivering packages of essential food and household items, while alcohol distillers are making hand sanitizer. Some clothing brands have also turned their attention to making and retailing face masks.

They’re diversifying their offering to cater to what’s in demand.

Online is critical

Prior to COVID-19, online were certainly important to have. Now they’re absolutely critical.

With more people spending time indoors, this is particularly the case for retailers who offer products like homewares, and DIY items.

People are looking to occupy their time and items like these along with games, puzzles, kids’ educational tools, and tech hardware help keep them busy.

Meanwhile, essential items are also sought online. This includes online ordering of medications and food.

Be transparent

Whether it’s on social media, your website or via your email marketing, be open and transparent about what you’re doing as a retailer.

This includes strategies you are embracing to protect staff health and employment, initiatives that have been put in place to better service your consumer, and how your business is being impacted.

When people understand what you’re doing they’re more than likely to support you and assist.

Be interesting

People currently have a lot of time on their hands, and some welcome a distraction. This is the time to help out with how-tos and guides.

For fashion retailers this is especially pertinent. Guides on getting the look, what’s in, work from home wardrobes and more, could be topics of interest.

Communicate, communicate, communicate

It’s not business as usual by any means, but it is important to communicate that retail is still indeed in business. The offering might be different, the delivery might be altered, but communication is key to ensuring your customers know where you’re at.

Reach out to your community

Help your community and they will help you. This may not be the time to spruik the latest online sale, but it is the moment to reach out and assist those in need.

When a brand shows its altruistic side, it’s far more likely to reap results in terms of loyal and raving fans. Long after this immediate crisis is over, these are the people who will have your back.

Set up for the comeback

Although there’s no doubting things in retail are tough, one unique benefit that is coming out of the current situation is that all industries are being forced to rethink their strategies, embrace technology and look at the systems and procedures within their business.

This hiatus offers an opportunity to look at retail business efficiency and spend time setting up for the comeback.

When COVID-19 ends, and it will, there will be a palpable sense of relief driving consumerism in the immediate aftermath.

That will bring its own opportunity. In the interim, the aim of the game is to remain relevant, cater to consumer’s current needs and be flexible and transparent where required.

If you’re looking for further resources about retail at this time, including Government relief and industry guidance, the National Retail Federation has a dedicated page of COVID-19 resources.

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