TMA Australia Conference 2020
Date December 8, 2020
At the recent TMA Australia National Conference which centred around the theme ‘The New Normal’, Nick Taylor, Senior Managing Director of International Retail at Gordon Brothers analysed the global retail landscape and identified newly developing retail trends that will continue into 2021 and beyond.
- The Global Pandemic has contributed to A$2.9 trillion in lost sales across the retail market globally this year and is responsible for creating Covid-induced retail trends.
- Retail Boardrooms need to pay attention to changing consumer shopping habits and analyse which Covid-induced retail trends are ‘sticky’ and adapt accordingly.
- Retail Business Planning: Smart retailers across the Globe should be tearing up the 5-year plan and re-adapting their strategies to the ‘new normal’.
Watch Nick Taylor's video below:
What trends have we seen emerging post Covid-19 and sticking around beyond 2020?
In his presentation, Nick identified five Covid-induced retail trends:
- Localism: Consumers are choosing to shop locally. Footfall is resilient in local shopping destinations, whilst footfall in retail parks dropped by 12.5% and 37% in regional shopping centres.
- Price Consciousness: Price will remain the most important factor as an economic consequence of the crisis, as 44% of people strongly agree that they need to watch every dollar spent.
- Conscious consumerism: The pandemic has accelerated a pre-existing trend towards people caring more about climate change and ethical products. 51% of people are more concerned about the environment than they were a year ago and choosing to shop retailers who demonstrate conscious consumerism.
- Brands are trading up, trading down or trading off: The recent availability of branded items and specific products has led to a degree of polarisation regarding customers’ choices to specific brands and products, shattering brand loyalties.
- E-Comm and Digital: The pandemic has forced whole customer segments to shop differently, and Covid-19 has resulted in 6 years of growth in the online market, condensed into a matter of 6 months, and evidence suggests we won’t revert. Online share of total retail sales now stands at 11.1% compared to 8% LY and online retail sales now account for A$3bn compared to A$1.65bn in in Jan 2020.