Post Covid- New Retail Trends: Ending Retail Apocalypse
Neha Ujjwal
Assistant Professor, Delhi
Institute of Advanced Studies, New
Delhi, India.
ABSTRACT:
COVID-19 has impacted Retail
Sector up to a great extent and has led to a significant change in the Retail
Industry. This Study aims to understand the impact/change on the Retail
Industry caused by the Pandemic and this research also aims to identify the
available opportunities and new trends related to Retail sector in line with
the unlocking of various cities/countries, Trends which can be adopted by
various Players in the Retail Industry to finally end the Retail Apocalypse
cause by COVID-19.
KEYWORDS: Post Covid- New
Retail Trends, Ending Retail Apocalypse.
INTRODUCTION:
COVID-19 modified
the retail industry’s external environment the changes within the external
surroundings close the retail business greatly altered standard knowledge and
simply may produce a brand new structure and circumstances (a “new normal”),
which is able to have a good vary of impacts on politics, economy, and our
lifestyles, as well as the digital technologies that support them. Once the
government proclaimed a state of emergency, essential retail business that
handle food and daily wants received a business continuity request from the
government, however several alternative styles of retail business were forced
to shut. The impacts on the economy are laborious enough that some say it'll
take concerning 2 years to recover. The retail business, specially, has been
severely affected since the government asked folks to quarantine themselves,
that greatly restricted face-to-face service in stores.
Our lifestyles as shoppers
have conjointly been forced to vary dramatically. Staying reception and not
going resolute the shop created on-line getting unfold wide among people who
had not used it before. And thanks to the amendment in work styles ensuing from
folks being forced to figure remotely from home, life via on-line channels has
become traditional. The digital technology that supports the new patterns has
been well-liked for a few time, however its unfold has accelerated explosively
since the onset of the pandemic.
The future of Indian Retail
post-Covid:
The imprisonment is easing in
many elements of the country and non-essential outlets are becoming back in
business. however once having to shut buy on the point of 3 months, it will
ne'er be ‘business as usual’. Retailers have came back to markets wherever
folks will not crowd into outlets, wherever eager shoppers won’t be
window-shopping and jam-packed malls or a factor of the past.
The organized retail sector
has borne losses to the tune of Rs 90,000 large integer within the last 2
months. Revenues are null, however expenses still mount: EMIs, rent,
maintenance, employees salaries, etc.
Possible future trends within
the Retail Industry:
First, the retail business is
going to be needed to require continual action in response to changes in
shopper behavior and to the “new behavior patterns” advocated by the government
regarding social distancing and contactless interactions. The rising new role
of physical stores is anticipated to involve integration into the net getting
method because the trend toward the online-merge-offline (OMO) model continues.
For store operations, it's
vital to form a secure surrounding, not just for customers however conjointly
for workers, in order that they will work while not undue worries. With
progress toward providing contactless services and achieving social distancing,
stores can need to come back up with utterly new layouts and store operations
that support the new behavior patterns, that eventually are going to be the
issue that differentiates stores. Responding effectively to the corresponding
shopper and worker expectations can increase worker loyalty for the retail
business, wherever a labor shortage is predicted to stay a problem within the
future. The method human resources are non-heritable is additionally seemingly
to vary. Moreover, worker sharing, that has become a current business topic,
can most likely still be mentioned.
Relationships with business
partners ought to conjointly become even nearer. there'll be frequent discussions
with business partners concerning business continuity coming up with (BCP)
aimed toward keeping business running as a vital lifeline. there'll even be a
trend toward mutual analysis of every other’s worth as partners creating it
potential to continue business along.
LITERATURE REVIEW:
Study
conducted by Sucharita Debnath on “Impact of COVID-19 on Consumer Purchase
Behaviour in Retail Sector - Study Based in Kolkata Area” attempted to
analyze the impact of novel coronavirus in different areas of awareness level
of buyers, online services as well as huge price rise of products on consumer
purchase behaviour in retail sector. The findings of the study concluded that
the independent variable (huge price rise of products and delayed online
services) highly influenced the purchase behaviour of consumers.
Study on “Impact of COVID-19
on the Customer End of Retail Supply Chains: A Big Data Analysis of Consumer
Satisfaction” by Patrick Brandtner, Farzaneh Darbanian, Taha Falatouri and
Chibuzor Udokwu, concluded that the COVID-19 pandemic has been one of the
biggest disruptive events of recent decades and has had a global effect on
society and the economy. The political regulations resulting from COVID-19 also
has impacted so many significant changes in physical grocery shopping. However,
the specific impact of COVID-19 on consumer satisfaction at the customer end of
retail supply chains, i.e., the point-of-sale (PoS), has not yet been
addressed. By gathering and analyzing consumer satisfaction data (ratings) and
sentiments (evaluation comments) available on the open web, the current study
evaluates the impact of COVID-19 on consumer satisfaction at the PoS. Focusing
on the five biggest retail chains in Austria, the results show that there was a
general and significant decline in consumer satisfaction due to the pandemic.
The results have also shown a high impact of political regulations on consumer
satisfaction. Also, the text-mining based analysis of evaluation comments
indicate that store layout and facilities, as well as product availability and
waiting time had a great impact on consumer satisfaction.
Study conducted by Nithya S
& Abhijit Chirputkar on “The analysis of impact of covid-19 on retail
consumer behavior and business models” has aimed to identify the barriers to
the implementation of the e-learning system (Blackboard) among female students
at the Community College at Imam Abdul Rahman bin Faisal University. To achieve
the specified objectives of the study, the researcher adopted the descriptive approach.
The researcher had built the study tool “questionnaire” which covers four
areas: Administrative barriers, technological barriers, financial (physical)
barriers, and social barriers. The data was processed by the statistical
method. The findings of the study indicated that the areas of the barriers
which faces the implementation of the blackboard system among female students
at the community college at Imam Abdul Rahman bin Faisal University were as
follows: Social barriers which ranked first and with a (high degree) followed
by financial barriers (moderate degree), administrative barriers (moderate
degree) and the technical barriers (low degree).
With/post COVID-19 management
agendas:
In operational With/Post
COVID-19, the retail business should reply to four major management agendas
because it seeks to pick out future trends.
A) Institution of a brand-new
business model that supports new-normal shoppers:
The role of physical stores
can become clearer. they'll become a part of the patron getting flow.
· Obtain on-line,
pick-up future (BOPIS) is turning into common in sustenance operations like Mc
Donald's and cafes.
· Seven-Eleven
insurance sales (register reception/ contract at store)
· Dark stores
completely for on-line supermarkets, etc.
With the constraints of
standard sales ways removed, it's necessary to imagine and style the massive
image of the patron getting flow line, as well as the getting flow in physical
stores.
B) Making stores that support
new patterns:
In parallel with reviewing the
implements and consumables used at standard stores, still because the customers
and operational flow lines, once gap new stores it's necessary to feature new
operational policies that match the layout and operation to new lifestyles. as
an example, once coming up with the new layout, flow lines which offer for and
guarantee social distancing between customers and measures to stop drop
infection around money registers should be thought-about. to require these
sorts of measures, it's Associate in Nursing imperative task for headquarters
to examine the present store things and determine current problems.
C) Establishing headquarters
operations which may make sure that business operations won't degenerate, even
in Associate in Nursing emergency:
Amid the present remote work
style, supposed to be somewhat short, several firms are operational at a
diminished mode, solely concerning seventieth as active as was common, a state
of affairs that forces them to create up for labor capability shortages. this
needs them to interrupt far from the culture of sheer force and “human wave”
ways, and from work styles passionate about paper documents. they're being
forced to completely improve operational potency and shift additional to
digital work styles. these needs supervisor Associate in Nursing headquarters
operations to vary in order that they will support the shop even within the
event of an emergency.
D) Reexamination of business
continuity plans with the involvement of business partners:
For retail firms, that need
business continuity as a lifeline, product suppliers ar the sole true business
partners. within the event of associate emergency, a retail company should work
closely with its suppliers to meet the role of delivering the product society
wants. At this COVID-19 pandemic moment, what's most required is to research
the events and responsive measures from the point of view of the flow of
products and data within the offer chain. The results ought to then be used as
inputs to organize for the longer term.
The retail sector has
exponentially evolved within the previous couple of years marked by growing
awareness among customers, rise in disposable incomes, dynamical behavior and
growing integration of on-line and offline retail formats. As shoppers become a
lot of tight, retailers have had to initiate by remodeling merchandise, selling
techniques, presence and attractiveness so as to stay relevant for its
customers.
With COVID-19 dynamical the
buyer sentiment and life style, it's additionally hastened the difference of
technology during this trade. Being on-line and having a strong backend isn’t
optional any longer for any merchandiser. each merchandiser is adopting digital
ways that at a far quicker pace and is investment into technology to enhance
quality of service. we have a tendency to expect this fast-medical aid to open
new opportunities and drive modification within the sector.
Retail Trends Post Covid:
•
Omni channel merchandising:
COVID nineteen has created
shopping for nearly a lot of real than it's ever been and retailers have
started staring at innovative ways that of up sales, like providing virtual
trial rooms and video-based sales business. With this the mixing between
offline and on-line retail is probably going to grow additional. Businesses are
exploring integration ways to complement the client price proposition and/or
scale back prices. the main focus is currently on making a unified looking
expertise for patrons across totally different selling / sales channels.
•
Technology can revolutionize retail areas:
Technology can drive
revolution going forward and retailers should invest in school infrastructure
and work towards up their facilities. From check-out liberal to touch-free
looking, commercialism to transactions, technology can accelerate the trade
reducing physical interaction. Retailers ought to look into permanent
technological innovation within the style of apps, machine-controlled
replenishments, electronic rewards programs, control measures, contactless
looking and touchless technology.
‘Phygital’ areas, a merger of
physical and digital retail with the assistance of video game and computer
science is slowly getting into the retail house in Asian country and also the
trend is anticipated to grow additional. each on-line & physical stores ar
doubtless to embrace immersive technologies and intelligence to know client
psychological science and demand. we have a tendency to expect higher
collaboration between landlords and tenants on knowledge analytics likewise,
considering it’s the necessity of the hour.
The retail stores area unit
here to remain, and except being simply a degree of sale for the brands,
they're going to additionally function a platform to draw in, have interaction
and retain shoppers. Retailers area unit gazing making distinctive experiences
for his or her customers and area unit searching for top quality areas, that
area unit sadly low in provide.
To help change omni channel
marketing, there might be areas dedicated to for pickup/exchange/come back. The
F&B sector may additionally provide a fanatical space for pick-ups of
on-line orders. Last-mile stores also are expected to achieve more traction
within the coming back year, as newer business formats emerge that enable
individuals to order everything on-line.
Brands may additionally
differentiate their retail providing with flagship stores, regular showrooms,
specialty stores and pop-ups, thereby giving flexibility to move with the
particular customers once the demand arises and the way they might prefer to
move.
Though contact-less looking
and residential deliveries can become a norm, it's expected that malls
associate degreed store style might shift far away from the quality boxed huge
box layout towards the inclusion of additional inexperienced and outside areas
to supply an expertise with higher lightweight and ventilation. Going forward,
these developments area unit expected to form the means individuals are looking
in malls or high streets.
REFERENCES:
1. Patrick
Brandtner, Farzaneh Darbanian, Taha Falatouri, Chibuzor Udokwu, 2021. "Impact of COVID-19
on the Customer End of Retail Supply Chains: A Big Data Analysis of Consumer
Satisfaction," Sustainability, MDPI, Open Access Journal, vol. 13(3),
pages 1-18, January.
2. https://www.researchgate.net/publication/342470270_Impact_of_COVID-19_on_Consumer_Purchase_Behaviour_in_Retail_Sector_-_Study_Based_in_Kolkata_Area
3. https://www.researchgate.net/publication/342470270_Impact_of_COVID-19_on_Consumer_Purchase_Behaviour_in_Retail_Sector_-_Study_Based_in_Kolkata_Area
4. https://www.indiaretailing.com/2020/11/05/retail/retailers-must-prepare-for-transformation-post-covid/
5. https://retail.economictimes.indiatimes.com/news/industry/emerging-trends-opportunities-for-retail-in-post-covid-19-world/79792255
6. https://www.thehindu.com/real-estate/the-future-of-indian-retail-post-covid/article31703508.ece
7. https://www.abeam.com/vn/en/topics/insights/covid19_retail
8. https://www.mckinsey.com/business-functions/m-and-a/our-insights/the-next-normal-retail-m-and-a-and-partnerships-after-covid-19
Received on 18.06.2021
Modified on 30.06.2021
Accepted on 10.07.2021 ©AandV Publications
All right reserved
Res. J. Humanities and
Social Sciences. 2021; 12(3):149-152.
DOI:
10.52711/2321-5828.2021.00024