The New Rules of Retail
There’s little question retail has just lived through a market-shaping year.
Consumer behavior changed overnight as health and safety concerns suddenly became a purchase driver.
We saw technological adaption that would normally have taken years occur in a matter of months. COVID-19’s continued effects will be felt even after the pandemic subsides.
Understanding Retail’s Shifting Landscape
Understanding how political and economic factors may unfold will be instrumental to considering future investments and strategies.
While it’s difficult to plan around ever-changing political agendas, what is worth considering is how proposed policy changes could affect the retail space.
The trajectory of the pandemic and vaccine rollout will undoubtedly shape the 2021 economic landscape.
Retail executives seem to agree that an economic recovery to prepandemic trajectory levels will take time, with six in 10 expecting a recovery in the next one to two years - but a quarter sees a longer timeline of two to five years.
The old playbook and rules will likely have to be thrown out, and bold, differentiated action will be required to stand out from the competition.
As we look at the responses from our executive survey, we have found that, with the exception of cost reduction, all macro-level actions for retailers are largely the same, regardless of their performance in 2020. Similar investment strategies and areas of focus may make it difficult for an individual retailer to “win” in the new retail marketplace.