5 Examples Of What Post-COVID Retail Will Look Like

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Stepping into a retail store today is dramatically different than what it was 2 years ago, and we’ll likely see the impact for years to come. COVID permanently changed the retail world, and now brands and customers are navigating the new unknown.

Here’s what retail will look like in a post-COVID world. It’s nothing like we’ve ever seen.?

1 . Boom for e-commerce

Online sales grew nearly 50% at the peak of the pandemic as consumers stayed home but continued to shop. E-commerce will continue to see a major boost, especially now that many consumers have made online shopping part of their regular routines. Retailers will put a greater emphasis on online and mobile ordering and work to create more intuitive user experiences. However, some purchases are still best made in store, and just because customers prefer to shop online doesn’t mean they won’t ever come into the store. Retailers will have to balance the e-commerce experience with in-store offerings to create a consistent approach across all channels.

2. Curbside reigns supreme

One of the biggest takeaways from the COVID pandemic was the growth of curbside pickup. Many stores had already adopted BOPIS (buy online, pickup in-store), and curbside takes it to the next level. Stores ranging from grocery stores to big-box retailers and specialty stores have started offering curbside pickup, and customers appreciate the safety and convenience. Curbside orders increased 208% during the pandemic, and 59% of customers say they are more likely to continue curbside pickup after the pandemic. Now that many stores have established curbside pickup procedures and worked through the logistics, they can maintain those practices going forward. A number of retailers have even switched to dark stores to fulfill online orders, and the number is likely to grow.

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3. More empathetic marketing

We’ve already seen companies transition from straight selling to producing emotional and altruistic ads, and that will continue. Retailers will focus more on building relationships and doing good instead of just pushing products. With an impending recession and historic unemployment, customers will be more thoughtful about their spending, which means companies will focus on creating messages that connect with customers instead of tone-deaf marketing.

4. Increased automation

Retail is about to see a major automation boom. Brands had automation in view for the future, but in many cases the timeline has been sped up to create safer and more enticing shopping environments. Automation happens in stores and on the back end. Many retailers started automating their supply chains to limit human exposure during the pandemic. It’s much more efficient for a robot to fulfill orders than a human employee who has to observe social distancing. Big retailers like Amazon and Walmart are using more robots to track and clean inventory, and many smaller stores will follow suit. In stores, customers are looking for touchless and automated options, including kiosk ordering and self-checkout. Stores that offer the most in-store automation and the healthiest environment may have a competitive advantage.

5. Balanced inventory

Before COVID, retailers often stocked seasonal inventory far before customers would actually use it. Swimsuits went on sale in November, and school supplies hit the shelves at the beginning of summer. But stores that were closed for months now face a backlog of inventory. The short-term challenge for retailers will be to balance the inventory and get rid of the backlog of products, many of which are seasonally outdated. Many fashion brands also signed an open letter committing to shift the sales seasons to match with the actual seasons, a move that could trickle down to other retailers. As retail moves forward, inventory will be more in line with the current calendar. It will likely take the supply chain months to recover, and it could possibly never be back to its original schedule. In the short term, many brands are discounting items or saving current inventory for future release. For consumers, it means more in-season items and shorter buying windows.

The world of retail is always evolving, but never more dramatically than it is now. As stores and consumers adjust to the post-COVID world, they are sure to be in for a shopping experience like never before.

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