Post-COVID Investment Strategies for Retailers
The global COVID-19 crisis had a significant impact on almost all levels of society, but it’s fair to say some industries were hit considerably harder than others.
The retail sector was one such industry and those outlets without a pre-existing and strong ecommerce presence found themselves scrambling to catch up as lockdowns and other transmission prevention strategies forced them to close their doors and either move online or risk a prolonged period with no revenue.
However, now the worst days of the pandemic are behind us, the new retail landscape provides fresh opportunities. Investment in key areas now will give ecommerce and omnichannel retailers the best possible opportunity to find new levels of success in the post-COVID arena.
Retail Bounce Back
2021 saw investors take advantage of the post-COVID retail boom with significant levels of investment. In the UK alone, some £43.4bn was invested in 2021, approaching the record £48.6bn for the highest net retail fund sales seen in 2017.
This shows that retail is positioned to be a key area for growth moving forwards. However, with a global cost-of-living crisis being worsened by geopolitical events such as the Russian invasion of Ukraine, these gains are by no means on firm ground.
This means the time for retailers to leverage the power of these early investments is now and the time is right to put those funds to work growing ecommerce and omnichannel offerings.
Investment in Online
Ecommerce was already becoming a force majeure in retail investment, even before the onset of the COVID-19 crisis, but the pandemic saw retailers going all in on online out of necessity. Online spending growth in 2020 in the US was over three times what it was between 2015 and 2019, and those retailers which are looking to succeed in today’s market would do well to continue this trend.
The first step in developing any serious investment strategy must be to identify those areas of the business which are failing to meet expectations. Naturally, your ecommerce platform/app/website should be the first port of call as these will provide the main way shoppers interact with your brand online.
As we already discussed in a previous article in this series, the proportion of customers shopping on their smartphone via a bespoke application is far outpacing those making purchases via a web browser. If your ecommerce app is failing to see engagement, then now is the time to carry out an audit and identify improvements which can be made. If your brand does not have a bespoke app, then consider having one made.
Omnichannel Investment
The COVID-19 crisis has not killed the physical retail store. The isolation of lockdown restrictions has created new opportunities for brands to welcome shoppers back to the high street and there is most certainly an appetite among customers for visiting physical retail stores once again.
However, brands should be searching for ways to bring elements of the ecommerce experience into the brick-and-mortar experience and investing in technologies which can augment physical retail.
Marketing
There’s little point bouncing back from the COVID-19 pandemic if nobody knows you’ve bounced back.
Now is the time to renew investment in digital marketing and getting your brand message out to an audience which is still hungry for retail experiences. Partnerships with Instagram and YouTube influencers continues to provide fertile ground for brand awareness and sales and, for those brands looking to target GenZ shoppers, TikTok is becoming an increasingly lucrative platform for reaching that cohort.
Written content is also still a major player in digital marketing. If your brand doesn’t post regular blog articles/eBooks/whitepapers/etc. now could be the time to reconsider investment in these channels. Video content is also a fantastic method of getting your messaging out through alternative channels and humanizing your brand by putting your people front and center.
Final Thoughts
The retail landscape continues to evolve at an alarming rate and, now the worst of the COVID-19 crisis spears to be behind us, the time is nigh to start really considering where your brand is going to position itself in this new landscape.
Investment is key and your strategy for the next phase in your brand’s journey must begin with a full and frank assessment of your current capabilities and where improvements need to be made.
Online is not an option anymore and even those retailers dedicated to the physical retail space are going to need to incorporate elements of ecommerce into the in-person shopping experience.
The challenges of the last couple of years are still evolving and retail must evolve along with them.
Post-COVID investment strategies are set to be part of the conversation at eTail Canada 2022, taking place in September, at the Hyatt Regency Toronto, ON.
Download the agenda today for more information and insights.