COVID-19 has had a devastating effect on a wide range of industries. Physical retailers have been especially hard hit. Many will not reach their prior revenues for quite a while. Some will never reopen. So, what’s ahead for retailers in 2021?
For more analysis, check out these articles:
- Consumer Sentiment in 2020
- COVID-19 Effects on Consumers
- Planning for the New Normal
- Handling Supply Chain Disruptions
Will Shoppers Return to Stores: What’s Ahead for Retailers in 2021
In this post, we present highlights from various sources. And conclude with an informative infographic.
The pandemic will permanently change brick-and-mortar retailing.
Weak retailers will be pared down or disappear.
The store-based and online giants will seek consolidate 2020 gains.
The distinction between direct-to-consumer and traditional retailing will further blur.
Some strategic pandemic-based pivots may not stick.
The E-commerce boom will continue, along with its challenges.
Apparel retailers will attempt to bounce back
Many consumers will be stuck economically.
Through acquisitions, new owners will oversee some large retailers.
Spending on global reverse logistics technologies will spike in 2021. Forecast last year to hit $604 billion by 2025. Retailers will seek to alleviate a major pain point in the shopping journey and minimize the costs of returns. The quest to build a more sustainable supply chain lost some steam in 2020. But the vision for a more sustainable future and a reduced carbon footprint remains a key objective.
During 2021, the trajectory of the pandemic and vaccine rollout will shape the economic landscape. Retail executives seem to agree that an economic recovery to pre-pandemic trajectory levels will take time. With six in 10 expecting recovery in the next one to two years. However, a quarter see a longer timeline of two to five years. The old playbook and rules will likely have to be thrown out. And bold, differentiated action required to stand out from the competition.
A New Approach to Influencer Marketing from Tinuiti
Influencer marketing used to be all about selfies, carefully-constructed captions, and heavily-edited product shots. But in 2020, we saw a major shift in the way brands and influencers work together. Influencer content slowly transitioned to a raw, real aesthetic. And this change will continue into 2021. Audiences put trust in brands that showcase authentic voices. Furthermore, today’s savvy users will spot an overly-produced ad from a mile away. Brands must prioritize authenticity in their influencer partnerships.