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Pandemic's impact on UK retailers 'monumental': think tank
10 Aug '20
2 min read
Pic: Retail think tank
The direction of change that the UK retail sector is heading in has not diverged due to COVID-19, but has accelerated the need for fundamental structural changes and innovation in the ways retailers operate and reach customers, according to the latest KPMG/Ipsos Retail Think Tank (RTT) white paper, which said the pandemic’s impact on retailers has been monumental.
The behavioural changes will stick long term, but some of them will revert to the old. Much will depend on the desire and ability of consumers to spend, as the effects of the huge hit to the economy lingers and the uncertainty caused by Brexit acts as a further hurdle in the economy’s road to recovery, the white paper said.
The RTT firmly believes, however, that there is a now a window of opportunity for retail operators to seize the initiative, and, with Governmental policy support, become bold and radical, embrace the quest for new business models, remain intensely focussed on their customers, and so ensure they are in a position to take full advantage of the opportunities.
COVID-19 has acted as a change accelerator for many of the long-term structural issues that have been apparent in the retail sector for several years. Nearly every operator will require some level of structural change and as many as half of the retailers will need to pivot to a new model, it said.
A more balanced retail market will emerge, as some legacy operators in overpopulated categories exit and make room for surviving retailers to grow and new concepts and brands to emerge.
A shift to more immersive and experiential online shopping services will become prevalent, and this will be driven by retailer innovation and consumer uptake.
Opportunities for the physical high street will also emerge as the cost of opening and running stores is reduced, the white paper added.
The behavioural changes will stick long term, but some of them will revert to the old. Much will depend on the desire and ability of consumers to spend, as the effects of the huge hit to the economy lingers and the uncertainty caused by Brexit acts as a further hurdle in the economy’s road to recovery, the white paper said.
The RTT firmly believes, however, that there is a now a window of opportunity for retail operators to seize the initiative, and, with Governmental policy support, become bold and radical, embrace the quest for new business models, remain intensely focussed on their customers, and so ensure they are in a position to take full advantage of the opportunities.
COVID-19 has acted as a change accelerator for many of the long-term structural issues that have been apparent in the retail sector for several years. Nearly every operator will require some level of structural change and as many as half of the retailers will need to pivot to a new model, it said.
A more balanced retail market will emerge, as some legacy operators in overpopulated categories exit and make room for surviving retailers to grow and new concepts and brands to emerge.
A shift to more immersive and experiential online shopping services will become prevalent, and this will be driven by retailer innovation and consumer uptake.
Opportunities for the physical high street will also emerge as the cost of opening and running stores is reduced, the white paper added.
Fibre2Fashion News Desk (DS)
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