It is right to celebrate the retail heroes who have risen to the challenge of keeping Scotland fed and watered – but now is the time to begin building a Covid-19 legacy that ensures we retain as many of our new customers as possible in the long term.
Coronavirus has been an almighty omnishambles that has probably changed the world forever. That’s something we can probably all agree on. The rarely spoken fact remains, however, that it has had an undeniably positive impact on the local retailing sector across the UK.
Kantar reckons that sales in the convenience channel have been up by as much as 85% during the pandemic and I’ve yet to speak to a retailer who hasn’t seen sales rocket. That’s nothing to be ashamed of.
The sector has been given the opportunity to demonstrate its true worth to communities across the country and has passed that test with flying colours. Bar a few morally questionable individuals, it seems that the vast majority of retailers have avoided the temptation to price hike and exploit this opportunity – so our sector can hold its head high.
What’s even more encouraging is the amount of data suggesting that consumers won’t be rushing back to their old ways any time soon. They appreciate that their local independent has been there for them when times were tough and we have earned some respect and some loyalty. We’ve been forced to evolve and adapt quickly to the new world order and we’ve largely succeeded in doing so. But what have we really learned from the last few months that we can use to our advantage for months and maybe even years to come?
For me, there are several learnings and opportunities and they’re highlighted below. By embracing these opportunities, retailers have all the tools they need to build sustainable, long-term growth. There will be more shocks and challenges in the future, some of them already lurking on the horizon. Would you bet against a price war breaking out between the supermarkets as they attempt to reassert themselves under the new normal?
These are interesting times, but once again our sector has shown how capable it is. And long may that continue.
What have we learned from Covid-19?
The coronavirus pandemic has changed forever the way both shoppers and retailers behave. And while local retailers have been the undoubted stars of the show over the last few months with their heroic efforts to serve their local communities, it’s vital that our sector views the last few months as a platform to build better businesses for the longer term, rather than viewing it as a short term once-in-a-lifetime bonanza.
So what are the key lessons to be learned?
Community matters more than ever
The strength of the relationships that local retailers enjoy with their communities has long been our one standout USP. It’s something the supermarkets and discounters have never been able to replicate and probably never will. But coronavirus has led to those relationships becoming stronger than ever with communities across Scotland realising just how vital that their local stores are to a well-functioning village, town or city. We’ve earned the respect of our communities over the last few months – and rightly so – but now is the time to plan how we are going to maintain those relationships at this new, more closely entwined level.
Home delivery is the game-changer
Home delivery has been the most important game-changer of all since lockdown began. It was something that many local retailers were dabbling with but only a limited number were actually taking it very seriously. ACS figures show that only one in 10 local retailers did home delivery prior to lockdown. A month or two later and that figure was almost 70%. As well as providing a vital lifeline for communities, families and individuals under all kinds of pressure, home delivery is simply very much in line with the way shoppers want to operate these days. Can you think of any other opportunities to add up to £10k a week of additional sales to your store turnover without damaging existing in-store sales?
Digital, tech and data’s day has arrived
Digital, tech and data are huge topics but they are intertwined and, again, they are areas that some retailers have been dabbling in but only a few have really gotten behind. Coronavirus has proven to be the great accelerator and this will be particularly true when it comes to speeding up adoption of digital, tech and data. Tech offers the chance to do routine tasks quicker, more efficiently and cheaper. Digital is transforming the way retailers communicate with their customers but also with their wholesalers and suppliers. Data is the latest mission-critical challenge that our sector must embrace. It has already transformed the way all other retail is done – it’ll soon be time for it to transform the way local retailing is done.
Customer service… but not as you know it.
Customer service has always been how local retailers set themselves apart from the competition, but customer service is changing. What customer service even means is changing because shoppers’ expectations have changed beyond recognition in the last few months. Yes, a friendly face behind the till and a chat to catch up on the gossip is still important, but what shoppers consider to be great customer service has evolved beyond recognition. Shoppers now live in a world where data and technology makes their lives easier than ever. They expect the same levels of customer service when they interact with their local convenience store and that will mean embracing data to personalise communications with individual customers, that will mean generating specific promotions for specific groups of customers, or even individual customers. Ultimately, what it means is that customers will expect to get relevant communications at the times that suit them best on the channels they prefer. One size no longer fits all. Personalised customer service is where it’s at.
Don’t get comfortable
Possibly the most important learning from the coronavirus pandemic is that everything can change overnight, and it probably will again. It might not be another virus but the future is likely to bestow many more shocks on us. The key here then is to build a model that keeps you agile, alert and ready to adapt at the drop of a hat. The ability to change quickly was partly why local retailing fared so well under coronavirus. The regular contact with shoppers meant that retailers stayed in touch with what shoppers actually wanted, letting them adapt their offer to better suit the current mood and circumstances. This will be a vital quality to retain moving forward as the only thing likely to remain constant is change.
