Re-Opening Retail: 5 Trends to Watch

Welcome to the Retail Reset. Ready or not, here we are. Leveraging our collective power of “been there, done that” practitioner wisdom has been the hallmark of Digital Prophets Network approach for over a decade. So, this week we rounded up a few of our trusted Partners and Prophets to contemplate what’s next as we gear up for a new normal in retail.  This unprecedented shelter in place experience will have lasting impact on consumer behavior, well beyond 2020. Businesses should be anticipating and planning now to create a nimble, responsive, and opportunistic Post COVID-19 organization by simplifying operations, utilizing digital and data to adapt and react to evolving market and customer conditions.   

Our panel of experts – Sara Goertel (SNG Consulting), Karen Humphries Sallick (The Priority Group), Jeff Berman (Digital Retail Advisors), Jim Okamura (McMillanDoolittle), Kevin Biondi (Sproutward), Odine Bonthrone (The Velo Group), and Anne Ashbey (Digital Prophets Network) - discussed many trends & opportunities, and settled on these five emerging trends: 

1. Main Street Rules. Small business, hit the hardest by COVID-19, will be the first to benefit in its aftermath. Hard-wired for service, more intimate formats and nimble by design, they are plugged into their local communities’ overall sentiment and their specific customer relationships and therefore are best positioned to listen, pivot, reinvent, and serve the personalized needs of their base. The approach extends to all Retailers: those who can be nimble, authentically connect with their audience (identify, segment and message uniquely) and can address the new norms (fears, concerns, desires) will have a better chance of more quickly regaining momentum in the wake of the epidemic. 

2. Commerce becomes touchless (and high touch!). Contact-free, cashless transactions are the new must-have basics. Gone are many of the past barriers (downloading new apps, payment types, log ins, recurring subscriptions). Post Coronavirus, some retail associates won’t want to touch credit cards, and some consumers won’t want to touch a store pen or keypad. Retail stores need to fast track touchless checkout technologies that leverage digital payment methods, including scan and go, self-serve check-out or pre pay via mobile. Hygiene practices, delivery and pick up options, reservations, pre orders and virtual shopping services will be differentiators in the short term, and must-haves longer term. Low-touch supply chain and packaging will become requirements for many shoppers.  

3. Service is the new differentiator.  No longer relegated to operations for traditional customer service and support, the 1:1 personalized sales experience will become the strongest front-line asset for the brand and/or retailer. Here we take a lesson from hospitality, adopting a paradigm shift in all parts of the business, where customer service will be delivered virtually. And tele/video/remote shopping assistance, sales and support will need to be incorporated into internal and customer facing practices. In the Post Coronavirus world, Customer Care will need to be everywhere, woven throughout the retail organization and part of every employee’s DNA. 

4. Christmas comes in July. With Amazon Prime Day moved from July to August and brick & mortar stores reopening location-by-location in phases between June and September, pent up consumer demand, excess inventory and motivated sellers will open a Black Friday level retail moment for brands. Deep discount & heavy liquidation events will dominate in Q3 to motivate buyers for quick sell through of seasonal inventory. Retailers should look for opportunities to “Liquidate-in-Place,” maximizing margin and carefully monitor channels of distribution to retain brand control. 

5. Policies & People get repurposed. New SOPs & corresponding SLAs, KPIs will need to be quickly adopted to support screening, testing, certification, hygiene, touchless or one touch as a way to regain consumer confidence. Delivery and handling practices may become more important than speed, price or inspirational promise. With new SOPs in place across the business, the org structure and roles will be reinvented and transformed. Financial assumptions, plans and projections will need to be reworked. People will be repurposed, with some sales associates becoming personal sales reps and influencers, and customer service reps becoming frontline up sellers. Schedules and staffing will be rethought, placing the minimum number of staff & customers allowed and effectively dayparting every aspect of the business across virtual, remote and on-site locations. Traditional marketing agencies, at limited return on high cost service model will be replaced with insourcing capabilities, drawing on external advisors and specialists for evolving digital capabilities, platform automation, insights and optimization. 

About Digital Prophets Network  Digital Prophets Network (DPN) is a practitioner-led, customer-centric advisory firm focused on helping retailers & brands adapt, transform and accelerate digital retail growth. Through our highly curated Network of digital & retail superstars, we provide strategic consulting, executive placement, interim management & staffing and advisory services in all specialty areas within the consumer journey and brand experience: ecommerce, mobile, stores, digital AND traditional sales & marketing channels.