From fluctuating shopping tendencies to periodic socioeconomic variations, many factors are responsible for the retail industry transformation today. In particular, the Covid-19 pandemic has been a significant disruptor. It has single-handedly brought many existing retail norms to a standstill, sparking off new trends and practices. Being far more enlightened, discerning, and observant than earlier, the average consumer has also brought about considerable changes. Big data and AI have made in-roads to all major store SOPs including retail audit, demand forecasting, and merchandising.
Here are six significant trends that every retailer needs to gear up for in 2022:
1. Online Retail Brands Venturing into Offline Spaces
As we approach 2022, online shopping has never been more popular and lucrative. Yet, we are witnessing an exciting foray of erstwhile, online-only brands in offline spaces. Especially FMCG and Grocery Brands like Amazon Fresh and Foodhall are keen on opening brick-and-mortar stores.
As the pandemic stress is wearing out, an increasing number of shoppers are venturing outdoors. The primary aim is to capitalize on the well-established brand name and target consumers who strongly prefer the in-person shopping experience.
2. Data-Driven Retail Audit to Scope Out Errors
The retail industry transformation is not merely restricted to customer-facing operations. All major internal SOPs have evolved from manual to digital. Retail audit being the backbone of store operations, has become increasingly data-driven. Most importantly, physical audits are being replaced by virtual audits to lower costs and boost efficiency.
Having auditors regularly travel to stores for weekly/monthly audits is wrought with logistical and financial woes, especially in the wake of the Covid-19 pandemic. A virtual audit with real-time data dashboards is much faster, accurate, and cost-effective. Many retail corporations don’t have the money and expertise to conduct virtual audits. Thus, relying on a proficient digital retail team is the best option.
3. The Redefined Retail Experience
The concept of experiential retail has caught on well with the present-day consumer. The erstwhile retail experience of merely buying is no longer an attractive proposition. Customers are looking for immersive experiences in one form or another. It could be as simple as a free sampling experience at the local grocery store. Or it could be something as lavish as a coffee studio replete with books and artwork at a luxury home décor store.
Owing to the Covid-19 restrictions, virtual stores enhanced with AR (Augmented Reality) and VR (Virtual Reality) are making their mark. Virtual shopping assistance is being incorporated in e-commerce to bring in the much-needed personalized touch.
4. Supply Chain Sustainability Mandates
Implementing sustainable practices in the supply chain was never a priority for retailers earlier. Today, this situation has completely changed. Consumers are interested to know if you are using recyclable packaging materials, utilizing renewable energy sources, saving water, and more.
The greater is your supply chain transparency and sustainability; the higher are your chances of striking the right chord.
5. Multi-Channel Retail is the New Norm
No retail brand can survive solely through a single channel today. With online brands diversifying into offline spaces and offline brands also venturing into e-commerce, multi-channel retail is here to stay.
Apart from e-commerce and brick-and-mortar stores, other interesting formats are emerging in response to widespread consumer demand. These include ‘online order and pick up’ outlets, VR stores, drive-in stores, and experiential stores, to name a few.
6. Retail Analytics to Convert Metrics to Action
While specific basic metrics have been monitored in the retail industry for long, a comprehensive data-based approach was lacking.
Today, the top retailers are adopting a data-led approach with a focus on key growth drivers. The most successful retail companies conduct systematic data analysis, garnering a precision-based approach towards the metrics that matter.
Conclusion
The aforementioned trends portray an increasing reliance on retail analytics to boost sales and productivity. The future is predicted to be an intriguing amalgamation of intuitive merchandising, data analytics, big tech, and customized services.
The entire industry is up for a major upheaval in 2022. Retailers must recognize these changes and adapt to them. This will ensure a smooth transition from bulky, legacy-based retail models to lean, efficient, digitized, and data-driven businesses.
The retail sector, much like, e-commerce is now more data-driven than ever before. Every business needs to understand and acknowledge these changes.
