Innovation Is Key In 2021
On a recent episode of the “Retail Gets Real” podcast, Mitch Joel, founder of Six Pixels Group, talked about how the expected return to “normal” represents an opportunity for resurgence. Even so, the smallest retailer has been forced to innovate to survive the challenges of the past year. With lockdowns, social distancing and regular cleaning required, retailers have had to meet unexpected challenges to their very existence (source).
Joel, who will lead a session at the National Retail Federation’s 2021 “Retail Big Show” this month, said many of the changes in consumer habits and business tactics will be hard to reverse. His session at the NFR’s annual conference, which will be virtual this year, is titled “The Great Compression,” a reference to the shift to ecommerce which was already in play, but accelerated to near 50 percent due to the lockdowns (source).
According to Joel, physical retail is traditionally about shopping. It’s a community thing; a social thing. Online isn’t like that; it is just about buying. This means retailers are learning to make the in-store experience more of a buying experience that you can’t get online. So some of the large retailers have gravitated toward in-store video and images to enhance the experience.
He also talked about the fact that, because people have spent so much time at home, leisurewear companies have done well, while business attire retailers, like Brooks Brothers, have suffered. There was no way to predict or prepare for that in 2019. So success has an element of luck that is difficult to accept.
Though he talks about the potential for using online tools like Zoom to interact with customers, he also feels the social separation many have experienced is negative and, in spite of the convenience of online buying, the act of going shopping will always be important for emotional health as well as simply enjoyable.
The “Retail Gets Real” podcast is available from Apple Podcasts, Google Podcasts and Spotify.
