2020 was undoubtedly the most disruptive and unpredictable year in living memory. The COVID-19 pandemic has had far-reaching consequences, affecting everybody’s lives in some way or another.
Apart from the hospitality industry, the retail industry has been one of the worst affected as a result of the pandemic. Retailers have had to deal with changing government restrictions and new, more demanding customer expectations. Everything has changed in such a small amount of time, so organisations have had to be highly flexible, and work hard to keep up.
So, what have retailers learned from this tumultuous year?
Change is Inevitable
We are used to change; indeed, we thrive on it. Since the Industrial Revolution 200 years ago, our world has transformed and sped up considerably, but the pace of change seen in 2020 was unprecedented. The pandemic served as a catalyst, speeding up the change in retail that was inevitable, while also exposing the soft underbelly of weaker organisations. The retail industry has undergone five years’ worth of change in less than one year, and the retail landscape looks markedly different from how it did this time last year; at the time of writing non-essential stores are closed, and the high streets are eerily quiet, whereas e-commerce is booming.
Think Fast and React with Conviction
If there was one constant in 2020, it was that we learned to expect regular changes to the rules and restrictions. Government guidance around whether shops could open, social distancing, and what constituted safe operations changed on a weekly, sometimes daily basis, so retailers faced the challenge of responding to fast-moving customer expectations and behaviour in real-time.
To survive this difficult period, retailers had to show determination and move at a pace not seen before, and those who managed this proved to customers that they were able to cater to their needs. This enabled organisations to become more resilient.
For example, Aldi made the move to online – something they were adamant they would never do, while John Lewis stores shut for the first time in 100 years in March, and in 3 weeks they launched virtual services across home design, nursery, and personal styling.
Retailers have had to think about how they get products to customers, which led to a rise in omnichannel retail, especially curbside pickup and Click & Collect services. Those who didn’t think fast and act have fallen by the wayside, so we’ve unfortunately lost several big brands from the high street. Mothercare shut the doors of its stores for good, as did Carphone Warehouse, while Debenhams and Arcadia have both collapsed into administration, and this is just the tip of the iceberg.
2020 and the COVID-19 pandemic has highlighted the message that in volatile and changing times, speed of execution is integral to survival.
Partnerships are Vital
We are in this together. That is the most important lesson that we’ve learned from the pandemic, and it applies to the retail industry as well. In 2020, we saw some organisations join forces to achieve their shared end goal: ensuring that the customer receives a first-class service.
An example of the need for partnerships is apparent when you look back to the beginning of the first lockdown in March 2020. Due to an increase in demand for consumables, retailers had to bring in thousands of extra staff members when the pandemic hit, and they leaned on external suppliers as well as hiring their own temporary staff.
It is scenarios like this, when retailers need to quickly scale up their staffing resources on a temporary basis, that call for the expertise and capacity of specialist companies who can provide teams of skilled, flexible workers at a moment’s notice.
“Misery acquaints a man with strange bedfellows”
– William Shakespeare, The Tempest.
The government restrictions meant that some retailers had to find new ways to serve their customers. According to GlobalData, the UK’s Click and Collect market is forecast to reach £9.6 billion in 2022, and it is evident that retailers realise how lucrative the service is for their sales. Last year saw Amazon partner with Next to launch a new service that allows customers to collect parcels from pick-up points from the latter’s high street stores, while John Lewis Partnership struck a deal with fashion retailer Boden to allow customers to collect online orders from selected Waitrose stores.
Perhaps the most significant Click & Collect partnership is John Lewis’ deal with The Co-operative Food. Announced in May last year, it provides John Lewis customers with a new delivery option by allowing them to pick up online orders from Co-op stores.
It’s refreshing to see different retailers collaborate on this scale, working together to serve their customers during these difficult times. There is a tangible sense of unification which is what the world needs right now.
Omnichannel is Essential
Omnichannel brings together the strengths of all a retailer’s channels including stores and online, to all their customers, however they want to shop.
2020 has seen a transformation in shopping habits, with consumers expecting more choice and freedom than ever before. Although we’ve seen a surge in online sales, many consumers still want to experience what brick-and-mortar stores have to offer, namely, the touch and feel of the actual product, and to speak face-to-face with a retail expert. Therefore, high street retailers are expected to innovate their in-store offers while also making their Click & Collect services and returns procedures more accessible.
The debate of online versus offline has been settled, and the results are in. Customers often want the best of both worlds, and they want to be completely in control of how they shop and how they receive their goods.
Ready for What Comes Next
2020 was a brutal year for retail, and even though a new year has begun, we are far from being out of the woods and disruption is likely to continue for some time. However, unlike this time last year when COVID-19 caught retailers off-guard, they now have a better idea of how to survive this new normal, and with the lessons learned from 2020 they are in a much better position to brave the future.
RMS is one of the leading providers of retail support services in the UK and Ireland. By utilising a nationwide workforce of skilled, flexible merchandisers, supported by flex, our state-of-the-art resource management system, we deploy teams of staff to support retailers across the country.
