The pandemic transformed the retail industry by digitizing business operations and embracing omnichannel for a better customer experience. 

The Covid-19 pandemic brought a drastic change in the way economies work. The sudden workspace shifts, social isolations, and distancing norms paved the way for a larger digital migration. Most of the industries embraced digital automation to ease the effect of the pandemic blow and transformed their business strategies to suit the post-pandemic phase. 

The retail industry was hit hard when consumers shifted to online platforms and we saw a visible change in the pattern of consumerism. According to a McKinsey Survey, up to 30% of consumers in India said they will decrease spending on discretionary categories and there was a 25% net increase in intent to spend online even post Covid-19. The changes brought by the pandemic will remain in the coming years where retailers will adapt to the new normal of doing business online. Having said that, let us take a look at some of the trends that are going to rule the retail industry in the post-pandemic years. 

Improve Customer Experience Through Omnichannel

The rapid changes in consumer behaviour brought a shift in the retail businesses across the globe. Retail stores optimized physical stores, online platforms, and third-party marketplaces to sell their products. Retail through omnichannel is here to stay even after the pandemic. In the current business world, customer experience is of utmost importance to achieve growth and agility. The new-age consumers believe in personalized experience and turn to the convenient shopping platforms available. 

Many retailers have adopted the click and collect method to enhance business, where they turn the brick and mortar stores into a transit point for delivery. Social media is a crucial touchpoint for retail services. These days, most retail stores maintain a social media page where they can directly engage with consumers and provide unique in-store experiences. Omnichannel purchasing will help drive customer traffic and reflect on the drawbacks of retail stores. 

Dark Stores Are Here To Stay

The pandemic norms of social distancing held back consumers to their homes and this disrupted the going-to-the-store system of buying goods, thus shutting down brick and mortar stores all over. Many retailers took this opportunity to convert their traditional stores into dark stores. Dark stores are physical retail stores only used for delivery and pick-up of services. The consumers are able to purchase from the online store and collect it from the nearest dark store. This way, the delivery becomes more convenient and faster. Automating dark stores will enable better facilitation of pick-up and help turning them into fulfillment stores. People who have already experienced e-commerce and online purchasing will find it difficult to return to traditional shopping methods. Hence, dark stores are here to stay even after the pandemic. 

A Shift Towards Private Label Goods

Many faced a dip in income during the pandemic, which led to a decline in retail expenditures. Other than essential goods, people averted themselves from buying luxury products. People started to buy and store essential products during the peak of the pandemic and many private labels sprung up on the stores. Private labels being cheaper than the other brands, helping people during their financial crisis. According to a Forbes article, private labels not only lift operating margins for business but also help retailers broaden their offerings to build a direct relationship with the shoppers of these brands.

Better Safety Strategies

The pandemic put light on the significance of safety and health in the current scenario. The fear of Covid-19 looming over humans made businesses rethink and reinvent their safety measures. Many retailers embraced new ways of providing safe and hygienic services to its customers. Food delivery apps like Zomato and Swiggy came up with taglines to divide safe and unsafe restaurants. A Deloitte report says that the majority of executives they surveyed plan to make moderate to large investments in health and safety upgrades in 2021, with three quarters investing in  sanitation devices and barriers. Better safety strategies are sure to gain more loyal customers that will improve the reputation of an enterprise. 

Incorporating Automation and AI

Retail industry relies on AI and big data analytics to provide the best in-store and personalised experience to their customers. Automation has a great role to play in the retail sector to reduce production and distribution costs, make business operations time-efficient, and minimise labour. Adopting AI helps in mitigating human errors and driving the sales. Further, robots are a great inclusion in the retail industry as they help in warehouse management and organisation. The pandemic redefined retail industry and the coming years will witness major innovations in the sector.