Retailers are watching the disruptors as coronavirus bites

The ability to keep up with disruptors is the greatest long-term challenge faced by retail businesses post-Covid-19, according to new research from RetailEXPO.

2,227 retail professionals were surveyed. Other challenges included meeting changing customer expectations (13%)). Also featured in the list were keeping up with tech innovations (8%) and using data from customer insight to drive performance (7%).

With the government announcing the reopening of non-essential stores in June, the importance of a physical presence in continuing to deliver value through ‘unique experiences’ was also highlighted in the research.

RetailEXPO previously released shopper research in which 48% said that experiential activations, such as classes or tutorials, and community initiatives, were must haves. Yet, despite 28% of consumers wanting to see experiences that supported greener retailing, moving towards a more sustainable model presented a challenge to just 4% of the 2,227 retailers surveyed.

Mark Price

In a post-coronavirus world, retailers should spare no expense when it comes to technology and intellectual property innovation, according to ex-Waitrose MD, Mark Price.

In a keynote presentation at the recent RetailEXPO Virtual Conference, entitled ‘View from the top: Creating a new vision for a new era of retail’, Price said: “What IP you own and how you innovate will be key in the months ahead, particularly when set against what the discounters and Amazons of this world are doing.”

“Businesses under pressure tend to increase prices, but the discounters have a hold over the consumer, and have been increasing market share in recent years. Consumers won’t feel richer post-Covid-19, and this will give a platform for the discounters to grow again,” he said.

Against this backdrop, in addition to tech and IP investment, retailers should “love the customers that they have. It’s very easy for marketing to focus on winning new customers, but I’ve always believed the most important customers are the existing ones who love you and your product.”

“Word of mouth is the most powerful form of advertising,” Price added. “You should look after and nurture your existing customers, particularly at this moment in time when you are not seeing them on a regular basis.”

Many retailers around the world are choosing to entice customers with discounts, but “there are others thing you can do to make them feel valued and service is really important,” he stressed.

Local heroes

Localism will also be hugely important as we see a kick back against globalism. “There is something powerful in playing to local needs,” Price said. “I’m actually very optimistic about the future of the high street. It will be reengineered with a focus on local retailers who have an international online presence.”

Keeping employees engaged will be key in the new era of retail. “Employees need to feel involved and developed if you're going to expect them to implement the changes we'll see over the next decade. There will be an increased focus on efficiency, which means empowering your people.”

Ultimately, it looks set to be a time of great challenges but also great exhilaration as companies and their staff embrace change. “It will create a whole new era of retail, and it will be born in the UK and spread around the world,” Price commented.

“I’m really excited about retail – it’s an opportunity for a whole new beginning,” he continued. While it will be tough for some legacy retailers, many will survive and thrive and new businesses will also spring up.