Twelve months ago, we wrote a blog on our perception of how retail had changed from 2010 to 2020. Well, a lot has happened since then to say the least, and I thought I’d jot down a few thoughts on 2020 and how a single year has altered our view of the future. I doubt many ‘2020 Vision’ plans have come close to reality.
In some ways it seems like only a blink of an eye since last March, but in other ways it seems like a lifetime. How quickly we have adapted to a new way of shopping, a new way of working and communicating. Put simply, a new way of existing. We’ve seen the failure of those retailers that weren’t prepared for the unexpected or were unable to adapt to new ways of working and changing customer expectation. We’ve seen the accelerated adoption of remote working and communication technology; it is now second nature to jump on a zoom or teams call and we are accustomed to seeing people in a more relaxed setting.
Has the world changed forever? We rapidly adopted a new way of working but does this mean we will revert just as quickly? The thought of going back to 5 days a week commuting and back to back, face to face, client meetings seems unlikely but, then again, so did being told to stay at home for months on end. I think that certain things will stay with us. For example, we are about to let go of our London office. Remote and flexible working has worked well for us and the cost of a permanent London base that is hardly used is a cost that just doesn’t stack up. We may well take office space again when the world is a safer place, but we will inevitably take a smaller footprint and continue to work in an adaptable way. Many organisations were scared to embrace flexible working but for many, the last ten months have proved it to be a viable option.
Embracing change
There is now much more of an acceptance that change is a constant and that we must be prepared to adapt and adopt to survive. From a technology perspective we cannot afford the time or cost of projects measured in years and we must focus on robust core systems that can facilitate change. Customer led technology adoption will always take us in directions we did not necessarily expect and we must put ourselves in a position to react quickly in order to remain competitive.
Embracing opportunity
The world of omni-channel has never been more important. Channels that allow customers to interact seamlessly with us but also the use of multiple channels to market. We must manage our products across many fascias and countries in a consistent and controlled way. Spreadsheets cannot be the answer; we must have solutions that facilitate rapid and visible data sharing. We must grasp every opportunity to sell our stock at the best possible price wherever the opportunity presents itself.
Embracing simplification
We have to get the basics right. Product, stock and customer are the foundation of everything we do. We have to have cross channel visibility and we have to have accuracy. How can retail operate on 70% stock accuracy? In an omni-channel world this means that for every 10 people we serve we will disappoint 3. Surely this doesn’t make sense.
Embracing the future of retail
The High Street cannot be dead, it has to evolve. The potential failure of brands such as Debenhams and Arcadia will leave large holes in the high street as we know it and something has to take their place. I wish I had the answer for this one, but I don’t. Retail is a constantly moving industry, it must surely find a way.
Sale fatigue
We all know that sales and promotions get earlier and earlier. It feels like one ‘must end today’ campaign is immediately replaced with the next discount led opportunity. We all know that retail is digging a hole deeper and deeper but doesn’t know how to stop. The constant erosion of margin is unsustainable but have we already permanently set customer expectation? It was interesting to see many retailers abstain from Black Friday discounting this time around, I think we will see this trend continue.
Digital retail
I have certainly embraced internet shopping but I am almost embarrassed about the amount of cardboard waste I am generating and the frequency of white diesel van arrivals. It is surely only a matter of time before we start putting more emphasis on our carbon footprint.
Personalisation is at the heart of retail
I look again at my own Amazon shopping habits. I have indeed bought from the targeted emails I receive, and despite the fact that I’m often disappointed by some selections given, something obviously resonates. The continuing explosion of data available on our preferences and habits and the willingness of the ‘youth’ to allow this data to tailor their experience will continue to drive technology innovation and investment in this area. Data volume and performance need will also accelerate cloud migration.
2020 was certainly a year none of us expected. Our retail industry has taken a beating but is still standing. We are still in a fight, and we don’t know how many rounds are yet to come. Hopefully 2021 will see retail come out on top.