The future of retail: Five consumer drivers for success in 2021 & beyond

Do you suffer from a fear of shoppers?

Also known as “shopperphobia”, many retailers have started to dread their own customers. At an individual level, they love them. They love their money, they love their engagement with their brand, they love them returning to their store.

Collectively, however, they have started to fear them.

It’s really a fear of the unknown; retailers are just not sure what shoppers are going to do next. Customers and their behaviour have clearly evolved over the pandemic, and many of these changes are going to continue. But even before the shutdown, the writing was on the wall. To paraphrase Bob Dylan, “The times, they are a-changin’”.

We’ve spent the last month analysing hundreds of different data sources, and five key shopper trends have emerged. 

For nearly ten years now, the retail industry has been talking about omnichannel. 

In the last 12 months, we have seen hard-core physical store retailers hurriedly moving online. We have also seen many online retailers launching a physical presence.

In most cases, however, the additional realm has been a “bolt-on” to their initial retail format. And frankly, it has not provided as satisfying of an experience for shoppers as their initial retail offering.

Shoppers don’t understand, nor are very interested in, the challenges and complexities of making significant operational changes. What shoppers want is the best experience they have had from any retailer, online or physical store. They expect to be able to drift seamlessly between channels and will be dissatisfied any time they don’t experience it.

At the risk of using yet one more trendy phrase, consumers also want “shoppertainment”. Rebel Sports launches a fabulous new store with lots of fun things to do and interesting ways to buy. Suddenly, basic shelving and elevator music is just not enough. You must make shopping with you memorable and fun.

It seems like every week our major supermarkets are launching a new sustainability initiative. And many of the most exciting emerging retailers have built their core brand premise around promoting social change and the notion that retailers have a responsibility to make a positive contribution to society. 

Of course, any business has only a limited capacity to invest in activities that don’t deliver an immediate and measurable ROI. The good news is, however, that within limits, all most shoppers expect, is to see their favourite retailers doing at least something; regularly. 

Recycling, staff policies, charitable contributions, supply chains, responsible financial practices; the list goes on. Take short term actions and initiate long-term strategies, communicate these regularly to your customers and the market, and it’s a great start.

I’ve covered three of those five key shopper trends; the final two are particularly challenging.

Along with the traditional race to the bottom in terms of pricing, many retailers are starting to compete on speed of delivery. 

The Reject Shop announces a 45-minute delivery option. One can only imagine the panic experienced by those parents who suddenly realise that they forgot to get balloons and streamers for their child’s party that afternoon.  

The data suggests this is a relatively rare situation. What most shoppers want are delivery times that fit into their lives. They want delivery after hours, and they want delivery on weekends. 

The final kicker is that our wonderful shoppers want to be valued. But that does not involve yet another loyalty card.  Unlike Baby Boomers’ fascination with Fly Buys, Millennials are generally more interested in authentic recognition. Seeking their input, responding thoughtfully to their blog posts and comments, providing tailored experiences that reflect their specific interests or requirements are all criteria they use to differentiate between retailers.

In summary, listen to your customers, and you will hear them say something like:

  • I want to shop anywhere, and at any time – ‘cos I never know when I’ll decide to buy something
  • I think shopping should be fun and memorable – and that’s what’ll make me do it more and more.
  • I only buy from retailers I trust and respect – and don’t worry; I will be checking.
  • I want it now; until I don’t – but most of all, I don’t want to fuss about it.
  • I like to be made to feel special – and to get something more out of the experience.

Download the Future of Retail Report and learn how to leverage the Five Drivers for success in 2021 and beyond.