How COVID-19 is Accelerating Retail’s Transformation ... and What That Means for Brands

After a year of social distancing, quarantines, and Zoom calls, it's no wonder people are yearning for human contact and physical experiences more than ever. In fact, 25 percent of online shoppers agree that online shopping is less satisfying than visiting a brick-and-mortar store, according to Kantar’s COVID-19 Barometer.

However, the brands that thrive moving forward will provide a different sort of retail experience than the ones we saw pre-COVID. They will also understand that although there's pent-up demand for in-person shopping, e-commerce isn't going away. Here’s what we can expect.

Intentional 'Reopening' Strategies

Spring 2021 is a new beginning for many. Vaccine distribution is revving up across the country, states are relaxing COVID-related restrictions, and people are ready to live life again. Retailers should see this as a time to reflect, change, and launch intentional “reopening” strategies — even if they stayed open during the pandemic — that signal to customers, and employees, that they're committed to providing safe, engaging experiences and are excited for what lies ahead. This could mean using purposeful messaging; debuting new products, capabilities and digital integrations in-store; and training employees to go above-and-beyond with service and personalized support so customers feel valued and energized by the brand’s palpable delight to be connecting in-person again.

Leaning Into the Unique Advantages of Brick-and-Mortar

People’s comfort level with online shopping has rapidly advanced due to the pandemic. According to McKinsey Research, 60 percent of shoppers who tried a new behavior during the pandemic plan to continue with it post-crisis. So, why is someone going to leave the comfort of the couch to shop in person? The brands that fared the best last year were addressing that question even before the pandemic. Glossier opened its first retail location in 2016, enabling shoppers to sample and buy products that were sold out online and snap selfies against the store’s “Instagrammable” background. (Glossier has since closed retail locations due to the pandemic, but it’s currently “hard at work reimagining the future of in-person experiences.”) In the fall of 2020, Levi’s announced it would open more NextGen stores with “Tailor Shops” offering repairs, tailoring, and customization options like stenciling and embroidery. Before you customize a pair of jeans, you want to try them on: Levi’s has created a reason for its customers to come to the store.

Data-Driven Decision Making and Digital Everything

While category leaders already had data-driven strategies in place, the pandemic has been a catalyst for retailers to deploy systems for collecting, understanding and activating customer data. Moving forward, brands will be more intentional about their marketing, leveraging data to determine where they reach and connect with their customers, and what they should promote when they do. They will look to connect customers’ online and offline behavior and empower store reps with easy access to customer profiles. They will also use digital signage that allows retailers to update messaging on a local level. Levi’s NextGen stores, for example, use digital signage throughout to inform shoppers of available fits and sizes. You can also expect more “phygital” experiences that blend digital and physical elements, like Love, Bonito’s augmented reality (AR)-enabled walkway at its store in Singapore, and Nike’s in-store activation that simulates an outdoor expedition using guests’ mobile phones, AR and QR codes.

The Customer is the Channel

The pandemic showed us just how quickly shopping preferences can change. Retailers need to be flexible and keep the customer at the center of everything they do. Curbside pickup and buy online, pick up in-store (BOPIS) options are here to stay because they're safe, but also convenient. Just as customers move seamlessly from the online world to the physical, they expect retailers to do the same. Therefore, look for a continued emphasis on cohesive, omnichannel strategies, and an increased willingness to pivot.

Spring means new beginnings and new opportunities. This is a chance for brands to reconnect with customers in new ways, to put their best foot forward, and to show shoppers they're ready to meet them wherever and however they prefer to shop.

Jaime Bettencourt is the senior vice president at Mood Media, a company that provides on-premise media solutions to help you connect with your customers, enhance your brand image and grow your business.