Brands have incredible opportunity to reinvent themselves, Alibaba exec

The coronavirus crisis has forced many retailers into much quicker adoption of new technology in order to connect with consumers, according to David Lloyd, General Manager, UK, Nordics and Netherlands at Alibaba Group.

“Although driven by uncomfortable necessity, brands now have an incredible opportunity to reinvent themselves and to dramatically accelerate their digital transformation,” he says.

“The drastic period of change we are living through will permanently alter consumer shopping habits and expectations: the brands who adapt most quickly to the current disruption, and who find new creative ways to engage with their audiences, will be the ones consumers turn to as we start to exit lockdown."

“It's no surprise that this week’s British Retail Consortium figures show that retail sales have seen a record decline in April. Even as restrictions start to ease, it's clear that there will be no quick return to normality for any sector,” Lloyd added.

The BRC research showed that, on a total basis, UK sales decreased by 19.1% in April, against an increase of 2.4% in April 2019.

Food sales were disappointing, with the virus preventing large family gatherings and turning Easter into a more modest affair. For many non-food goods, such as clothing, footwear and large household items, the decline was particularly steep.

The proportion of goods purchased online rose sharply, with products such as games consoles, bicycles, office equipment, and haberdashery, all high on the list. However, even this could not make up for the loss of in-store purchases.

“Coronavirus has accelerated many of the trends seen prior to the outbreak and it is likely that as the lockdown wears on, these new shopping habits – such as the trend towards online purchases - will become more entrenched for many consumers,” says Helen Dickinson, Chief Executive at British Retail Consortium.

“While retailers have a lifeline through various government loans and support, they need to know this will continue beyond the current deadlines. Government should also step in to support on rents for those retailers still facing rent costs, despite little or no sales. Without this, businesses may be forced to close – threatening jobs and further harming local communities.”

“Monday’s Recovery Strategy was an opportunity missed to provide a clear and detailed roadmap, outlining when and how shops will reopen after the 1st June, so that retail can help get the economy moving and the public can get all the goods they need.”