TOP 10 Retail Trends Post Pandemic
Bruce Winder
Retail Analyst, RETHINK Retail Top Retail Expert (2024/2025) Author, College Business Instructor, Speaker, Consultant, Neurodiverse, Artist
Further to my recent book RETAIL Before, During & After COVID-19, I have summarized what I think will be the top 10 retail trends as we exit the pandemic. Many of these trends where in play before COVID-19 existed and have accelerated as a direct result of the virus. Others are new. Either way I see these shaping the industry significantly over the next decade or so. While many appear obvious don't underestimate the magnitude of their potential impact on retail in the near future.
TOP 10 Retail Trends Post Pandemic
- E-COMMERCE ASCENSION – e-commerce becomes a significant sales channel rivaling bricks and mortar from an importance perspective over time. Large infrastructure build. Retailers learn to make money online. Integrated with remaining bricks and mortar assets. Exponential growth in complexity of retail supply chains.
- INDUSTRY CONCENTRATION – the strong will get stronger and the weak will be bought up or dissolved. M & A and Private Equity deals will fuel transition. Tech giants dominate space. Most department stores shrink to niche position. New retailers emerge that cater to new normal with low asset base and unique business models.
- STORE SUBTRACTION – the number of stores will be reduced and some of those remaining will become mini-warehouses and hubs for pick up and last-mile delivery. Store staff become gig workers who deliver packages and food.
- PHOENIX MALLS – Tier 3 malls will transform to a mixed use of residential and commercial accommodations or just residential. Tier 2 malls focus on grocery, services and pick up and returns for online purchases. Tier 1 Malls continue to thrive with global brands catering to premium customers with vivid tech enabled experiences.
- SAFE RETAIL – stores will be clean and many touchless similar to Amazon Go. Less lines – retail by appointment and staggered shopping times - enabled by apps like those at theme parks. Decade long fear of the next pandemic drives consumer behaviour.
- LUX or LOW-PRICED - Luxury or Discount ONLY - Mirrors society - gap widens. Income and wealth chasm not seen in 100 years. Middle retail vanishes over time. Ultra luxury market thrives as does value or discount. Polarization.
- BRAND WARS – last line of defense from big online consolidators and remaining discounters. Retailers: Owned brands/private label almost exclusively. Suppliers: More direct to consumer (DTC) through online and select stores.
- SHOPPER STINGYHOOD – Mass consumer change - save more, spend less, thrift devotion – growth of used products - apps/stores/green tie in. Thrifty is the new black. Excludes premium segment which becomes even more extravagant and indulgent.
- MICRO RETAILING - Everyone's a merchant – use Amazon, Shopify, Kijiji, Etsy, etc. New, small scale variable cost business models - labour, value chain, partnerships. Side hustles to make ends meet as governments raise taxes and cut services while gig economy grows.
- CASTLE COMMODITIES – Growth of household products as work from home sticks for many. Comfort, electronics, entertainment, food preparation, fitness, hobbies and pet products.
If you would like to learn more about these trends and how they could impact your business, please reach out. 416-705-5627 or [email protected].
Bruce Winder – Retail Analyst & Author, President Bruce Winder Retail
Bruce Winder is a Toronto-based retail analyst, speaker, consultant, business instructor and author. His 30 years of retail and supplier experience make him one of Canada’s most sought-after pundits.
Bruce has appeared dozens of times on numerous Canadian TV programs including Business News Network (BNN)/Bloomberg, CBC The National, CTV National News, CTV News Channel, CP24, Global News and CityNews, offering insight on retail matters. Bruce has been quoted hundreds of times in leading business publications including Bloomberg, The Washington Post, BBC News, The UK Guardian, Reuters, Adweek, The Globe and Mail, The Financial Post, The Toronto Star, The Calgary Herald, The Canadian Press, Maclean’s and many more.
Bruce published his first book RETAIL, Before During & After COVID-19 in 2020 with significant media coverage, offering thought leadership within the industry. 5% of Bruce's proceeds from the book go to mental health causes in Canada and the US. Buy Bruce's Book Here.
He is the president at Bruce Winder Retail and holds an MBA from the Smith School of Business at Queen’s University. He teaches a variety of business courses at a Toronto College.