Strategies for success in commerce amidst the post-pandemic era
Retailers have been compelled to adapt their physical stores in response to the pandemic, integrating advanced in-store technologies and emphasizing personalization to enhance shopper experience and convenience.
One of the key adaptations is contactless and frictionless shopping, with the implementation of contactless payments and grab-and-go solutions to minimize physical contact and speed up the shopping process. Omnichannel integration, combining online and offline shopping, has also been a focus, with models like Buy Online, Pick Up In-Store (BOPIS) and Buy Online, Return In-Store (BORIS) offering customers flexibility and convenience that bridge digital and physical retail.
Digital elements in-store, such as QR codes on product tags providing additional product information, reviews, and videos, have been introduced to enrich product understanding instantly. AI and machine learning are being leveraged for personalization, with tools such as generative AI, computer vision, heat mapping, and customer journey analytics used to tailor product assortments and improve the shopping journey.
Personalized marketing and promotions are also becoming commonplace, with data-driven insights used to deliver personalized coupons, loyalty rewards, and targeted promotions, making shoppers feel valued and increasing return rates. Store-as-hub models, where retailers like Target have transformed physical stores into fulfillment hubs for faster delivery and pick-up services, have also been implemented to blend convenience with operational efficiency.
These strategies collectively create a more engaging, convenient, and personalized shopping environment that meets evolving consumer expectations shaped by the pandemic. The adoption of intelligent retail technology supports seamless customer experiences while allowing physical stores to remain competitive in an increasingly digital retail landscape.
The sales shift to digital could also improve retailers' economics by shipping product closer to delivery points. Retailers are focusing on safety and the spread of pathogens, with major cost cuts and austerity measures taken last year, slashing spending on marketing, labor, and back office functions.
The Retail Industry Leaders Association and McKinsey have released a report with seven "imperatives" for retailers, advising them to tap into on-demand labor and gig models, but noting potential risks, including an erosion of brand identity and company culture. Curbside pickup and other low-contact fulfillment options have become popular, and the report emphasizes a doubling down on omnichannel, personalization, delivery, and social concerns such as sustainability.
Retail giants like Walmart and Target have been prepared for these changes, having invested in digital and omnichannel capabilities for years. However, many other retailers did not invest sufficiently in fulfillment, apps, websites, IT infrastructure, and inventory management, leaving them playing catch-up in the post-pandemic retail landscape.
- Amidst the pandemic, retailers have made significant adjustments, incorporating technology in their physical stores to provide contactless and streamlined shopping experiences.
- The integration of advanced technology has led to the development of contactless payments and grab-and-go solutions, which minimize physical interaction and expedite the shopping process.
- Omnichannel integration, including BOPIS (Buy Online, Pick Up In-Store) and BORIS (Buy Online, Return In-Store), has been a priority, offering customers flexibility and bridging the gap between digital and physical retail.
- In-store digital elements, such as QR codes, provide instant access to product information, reviews, and videos, enhancing shopper understanding.
- AI and machine learning are being utilized for personalization, using tools like generative AI, computer vision, heat mapping, and customer journey analytics to customize product assortments and improve shopping experiences.
- Personalized marketing and promotions have become prevalent, using data-driven insights to deliver tailored coupons, loyalty rewards, and targeted promotions.
- Store-as-hub models have been implemented, with retailers using physical stores as fulfillment centers for faster delivery and pick-up services.
- The emphasis on digital retail is expected to improve retailers' economics by shipping products closer to delivery points.
- As a result of the pandemic, retailers have prioritized safety measures, leading to significant cost cuts in areas like marketing, labor, and back office functions.
- The Retail Industry Leaders Association and McKinsey have released a report advising retailers to adapt by tapping into on-demand labor and gig models, although they warn of potential risks such as loss of brand identity.
- Retail strategies focusing on omnichannel, personalization, delivery, and sustainability have become more popular, with curbside pickup and low-contact fulfillment options being favored.
- Retail giants like Walmart and Target have been well-prepared for these changes, having invested in digital and omnichannel capabilities for years, while smaller retailers struggle to catch up in the post-pandemic retail landscape.
