At our Retail Futures Forum 2021, we presented our latest sector macrotrend, Eco-venience Retail, which examines how rising demand for convenient retail is clashing with the necessity for more sustainable practices, culminating in a conscious, future-proofed framework for brands.
Events over the past 12 months have forced consumers to experiment with new shopping methods as more transactions than ever moved online. Data from IBM showed that five years of digital progress were made in the first five months of 2020, and although the democratisation of technology is allowing a wider range of consumers to access e-commerce, it is also enabling a plethora of businesses to upskill and develop their brand’s digital infrastructure. While in this new world the number of stores will undoubtedly fall, the quality of engagement and service is likely to improve.
This new digital reliance, as well as fractured globalisation – including tumultuous trade negotiations between nations such as the US, China and India, Brexit, and the stranding of the Ever Given container ship in the Suez Canal – means brands and businesses will be forced to adapt to the changing demand and, importantly, supply of 21st-century consumerism.
Further macro-environmental factors including The Big Remote – caused by long periods of lockdown the world over – and the alarming acceleration of climate change are driving a hyper-local mentality, pushing many consumers to reconsider the role and impact of retail.
Back in 2019, David Uy, co-founder and CEO of BLMP Licensing Marketplace, reminded us: ‘People spend their money where they spend their time, [and more and more people are spending their time in digital eco-systems]’. But in 2021 more people are also spending time and money in their local neighbourhoods. Driven in part by convenience, community and personal connection, proactive brands are already reformatting and repurposing stores to provide micro-warehousing, fulfilment centres and local shops that can respond to new communities’ lifestyles.
But new priorities, values and morals will really affect future local retail choices, as consumers continue to demonstrate greater ethical and environmental awareness. Brands will need to make eco-credentials and the social impact of products more measurable, transparent and engaging to reinforce positive behavioural change.
As global supply chains grow too long and too fragile, retailers will need to evolve for consumers who want brands to exist, operate and serve them more cleanly and closer to home.
