Why shopping will never be the same

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In Brief. Shopping will never be the same Technology is set to change the way the world buys groceries. First published 1 June Additional disclosures This report is dated as at 01 June HSBC has procedures in place to identify and manage any potential conflicts of interest that arise in connection with its Research business.

HSBC's analysts and its other staff who are involved in the preparation and dissemination of Research operate and have a management reporting line independent of HSBC's Investment Banking business.

View Next. Join the conversation? Find out more. But fear may still prevail, and with social distancing looking likely to be in place for some time yet, bricks and clicks retailers are going to have to find innovative ways to lure customers through their doors — all the while showing empathy and reassurance.

So will they make like China, encouraging customers back into malls with millions of pounds worth of shopping vouchers , or the promise of a two and a half day weekend to boost spending? Another pair of trainers to add to your already bulging collection?

After Covid, where the fragility of humankind has been tested beyond belief, and a recession looms, frivolous purchases are likely to seem so much more, well, pointless. As people examine their relationship with mindless consumption, brands and retailers will have to find more meaningful ways to encourage people to spend with them.

With restaurants closed, Covid has brought out the home chef in many of us and as such, the way we buy and consume food is changing. The big weekly shop is making a return, meal kits are on the rise and organic veg boxes have also seen a huge spike in sales, possibly as consumers keep a keener eye on their health. This new found kitchen confidence presents an area of growth for restaurants and supermarkets alike.

You must be logged in to post a comment. Determined not to let the crisis go to waste, the travel operator revamped its brand identity, rolled out new creative principles and changed the way it talks about brand spend to make a stronger case for investment.

After running a number of experiments during the pandemic, Coca-Cola is planning to drive growth with a new direct-to-consumer ecommerce platform and stronger B2B relationships. Why is this so important, and besides the evolution of technology, what is driving this shift? Any time, anywhere retail Online shopping is no longer a single source, single platform static experience confined to the home laptop or PC.

The growth of customisation Technology is enabling some retailers, especially those in the fashion and clothing trade, to deliver a personalised experience to their consumers. Both traditional retailers and online stores are advancing with rapid and personalised connection points: With their consumers. At various touch points with their brands. This trend is pointing strongly towards the emergence of a mindset that, by engaging with them and staying connected, makes consumers feel a sense of belonging with the brands.

Instead of one-way messaging from brands to consumers, the shift is towards a two-way dialogue in which brand evangelists are bred from within the consumer base and not necessarily via celebrity brand endorsers. What at first appeared to be a temporary aberration is taking on a measure of permanence. Key to the impending transformation is the concept of space and its relationship to traditional business models. Developers, for example, will opt for more open areas and install antibacterial ventilation ductwork within buildings, among other things—all of which will push up their costs.

Rate-of-return expectations by investors may temper when greater space requirements and wages for frontline workers—long overdue—increase.

Since the s most of the benefit of rising productivity went to investors and senior management, while employees got short shrift. Growing unrest appears primed to boost compensation for workers most at risk. Restaurant and public space design will become more, well, spacious.

Take-out, drive-throughs and drive-in movies will win big. In some ways, s lifestyles will make a comeback. Large venues and modes of transport will no longer pack patrons in like sardines to maximize revenue. Drive-up appeal will factor more prominently as a way to draw customers to the curb, while parking lots convert to pickup points. Guests will insist on more sanitary hotel rooms and Airbnb properties. Additional bankruptcies await retailers than cannot adapt.

The reworking of the retail industry is taking place in earnest as stores convert to warehouses and logistics networks morph to accommodate residential delivery. If brick-and-mortar locations cannot shift to an online-only presence, they will close or convert to stockroom and shipping hubs. Supply chains will become more local to avoid disruption and decrease vulnerability of viral spreads from this and future pandemics. Supply chain theory taught in business schools and practiced by consulting firms will shift its emphasis from near obsessive focus on cost and efficiency—no matter how geographically far-flung—to resilience and reliability.