Retailers must up digital games as Covid reshapes consumer behaviour
24% of retailers plan to close physical stores in 2021 and two thirds of shoppers don’t expect to visit the high street this year, according to research by Brightpearl.
The company polled 1,000 retail brands and 2,000 consumers.
Almost one in five of the former are planning to move stores out of major city centres and into local high streets within the next 12 months, as 63% of shoppers claim they will shop more locally.
The main closures will affect sports and leisure brands (50%) and fashion players (30%). A quarter of home and DIY and 36% of electrical firms will also be taking an axe to their estates.
62% of retailers expect e-commerce to fare much better than the rest of their business over the next 12 months.
Six in ten are now looking to switch their focus primarily online next year to take advantage of the huge shift to e-commerce since the onset of Covid-19.
Amazon is set to be a big winner over the next 12 months with 55% of consumers saying they will use it more in 2021, although 30% do feel ‘guilty’ about abandoning physical stores for the ease of the US giant.
Brightpearl CEO Derek O’Carroll says: “Our study shows some big shifts as our work at home patterns intensify.”
“Customers have relocated online of course, but they’ve also relocated to the suburbs and the rural towns and that’s reflected in our emerging shopping habits.”
“Retailers need to respond to these changes and our data suggests many are already making plans to move stores to high street locations with increasingly strong foot traffic.”
He adds: “Over the next year, retailers are also going to have to up their digital game to meet growing online demand, and the expectations shaped by our new buying patterns.”
“Some savvy companies are already looking into adding local collection points to their online delivery offering to capitalise on customers’ increased preference for local shopping.”
“It’s a fulfillment strategy that makes a lot of sense, but requires slick operations to pull off successfully. It’ll be those brands that are prepared to adapt to this once in a generation retail transformation that will see the most success long-term.”
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