IGD identifies five retail trends for 2021
As I mentioned in a previous blogpost, the beginning of the year often witnesses the publication of reports about the upcoming trends in the industry. So, I thought I should share a few of these with you.
To start this series, let’s take a look at five retail trends identified by IGD. For each trend, Toby Pickard, Head of Innovation and Futures at IGD, was kind enough to give a few comments.
Five key trends
System upgrade: digitally enhancing operations
In 2021, technologies will continue to be developed and implemented. According to IGD’s research we can expect:
- The introduction of digital technologies that have a low capital investment and are easy to update
- Partnerships with third-party technology providers to speed up new tech introduction
- More use of machine learning and artificial intelligence at store level to drive revenue and increase customer satisfaction
Toby Pickard said: “The pandemic has accelerated retailers and shoppers’ digital awareness and capabilities. Numerous companies have been testing and learning from new digital initiatives, and in 2021 companies will need to move beyond this to improve and implement at scale. Digital transformation will require new leadership and a fresh cultural mindset as companies create flexible and agile ways of working.”
Escalating ecommerce: driving online and profitability
This year, we should see shoppers encouraged towards click and collect.
Also, retailers will seek to reduce their overall operating costs to accommodate online, and improve processes and automation. Rapid delivery options should also get attention.
On ecommerce, Toby Pickard commented: “With many shoppers using the channel for their large weekly shop, we have seen retailers focus on enhancing the pickup, or click and collect, experience to help improve profitability. This has included adding more collection slots, expanding order staging areas and parking bays and ensuring a contactless experience. While the initial surge is receding, online penetration is expected to remain at a higher level, compared to pre-crisis.”
Making a meal of it: creating inspiration and excitement
As consumers spend more time at home, retailers will make sure to offer inspiring meal solutions for all occasions. They will also seek to capture shopper spend that was previously taking place out of home.
Toby Pickard explains: “As the pandemic continues to create challenges for social interaction and people continue to work from home, we expect retailers to focus on inspiring meal solutions for all occasions throughout the day and week. By highlighting both value, ease of preparation and cooking along with inspiration, retailers have a real opportunity to capture shopper spend that was previously taking place out-of-home.”
Holistic health: supporting health and wellness
Health and wellness became extremely important due to the pandemic. Therefore, we can expect to witness
- A greater focus from shoppers on hygiene and sanitation products for individuals and the home
- Retailers and brands trying to differentiate themselves by helping shoppers and consumers live healthier lives
- More tailored solutions in-store, either through assistants or using digital tools like apps
According to Toby Pickard, “Health and wellness naturally became more important to everyone in 2020. We saw a wide range of activities from retailers as they aimed to encourage healthier lifestyles.
We will see more retailers educating, informing and rewarding shoppers for living healthier lives. Companies will look to champion both their health and sustainability credentials, as the two key trends merge, of their existing and new products. Personal health will increase in importance, but ultimately affordability may take precedence during economic downturns.”
Recuperative retail: focusing on sustainability
Last but not least, sustainability remains a major concern. According to IGD’s analysis we can anticipate the following:
- With climate change remaining a top priority, retailers globally will push ahead with initiatives to support goals in this area
- Continued implementation globally of initiatives to reduce plastic and food waste
- Initiatives to build trust, loyalty and better relationships with shoppers, staff and communities
On sustainability, Toby Pickard mentioned: “Climate change will remain a top priority in 2021, as it is recognised as the most likely source of major future disruption. While there will be much focus on how sustainability supports the climate change and resilience agendas, we will also see initiatives to build trust and loyalty with shoppers.”
For his last comments on this report, Toby Pickard commented: “The industry faced unprecedented challenges and had to adapt to ever changing government policies, and shopper and consumer behaviour changes.
When planning for 2021, companies should consider the two main variable factors from the pandemic: the potential path of the virus (from a relatively manageable virus to multiple outbreaks with lockdowns) and performance of the economy (from an economic performance that quickly recovers to a hard-hit economy slow to rebuild).”
For more info: www.igd.com
Trends 2021Igd Retail Tendances 2021