28 BDO LLP | RETAIL FORECASTS REPORT 2021
RETAIL IN THE AGE OF COVID-19 CONTINUED
KEY SECTORS IMPACTED AND EXAMPLES Fashion – Retailers are using technology to improve both the convenience and quality of the digital experience. For example, ASOS has launched a tool allowing customers to see products on models of various body types, while Selfridges has introduced gifting advice online and personal shopping sessions via video. Italian retailer Diesel launched a website for those who are buying its stock for resale, with a virtually reproduced 3D representation of its Milan showroom, including an arrangement of styles around the room’s perimeter and on virtual mannequins. Home – After a relatively slow start, shopping for the Home online is now rapidly gathering pace, not least because new technology is helping consumers overcome many of their previous reservations around buying products they haven’t been able to physically view and touch. Wren Kitchens and John Lewis are among those to begin offering virtual design appointments, while IKEA has acquired a US based AI imaging start-up, Geomagical Labs, to improve its room visualisation capabilities for online shoppers. The technology allows users to quickly scan any room with their smartphone and convert it into a panoramic 3D picture. They can then remove all the existing furniture in the scanned room, and place the IKEA furniture, to get an idea of how considered purchases would look and feel. Grocery – Grocery retailers are most impacted by the switch from cash to contactless, by virtue of the sheer volume of tractions they facilitate. Innovations such as Sainsburys’ SmartShop take this approach one step further, by removing staff from the process entirely, allowing consumers to scan as they shop and pay instantly via dedicated automated checkouts.
TECHNOLOGY HELPS RETAILERS & CONSUMERS ADAPT
The rising retailer and shopper uptake of technology has smoothed the transition from physical to digital, while also facilitating safer and more hygienic shopping during the pandemic, through tech such as footfall traffic light systems, in-store scanning apps and mobile transactions. One of the biggest shifts signalled by the pandemic has been an acceleration in the decline of cash in favour of contactless payments, not least because caps on contactless limits have been raised considerably, to help encourage consumers to make use of a method which is seen as much more hygienic than having to handle notes and coins. Technology such as augmented reality, virtual reality and AI will help retailers to replicate the experience for shoppers and therefore some of the main advantages of visiting stores. This will prove especially important for retailers that have traditionally looked to differentiate themselves through offering a premium in-store experience. Technology also has a role to play in optimising the instore experience and merging across all channels for the retailer, from helping retailers to drive shoppers to their websites more effectively, to allowing for more efficient use of physical space. Examples include the app ‘Dropit’ which provides a service allowing shoppers to have their store purchases delivered to their homes, avoiding the need to carry bags around.
How have the payment types you have used changed since the start of lockdown? UK consumers, August 2020
Card (contactless)
50.1
45.7
4.2
Card (chip and PIN) 24.9
55.8
19.3
Mobile wallet (e.g. Apple Pay, Google Pay) 13.8
60.7
25.5
Cash
6.5
37.2
56.3
Cheque 4.4
47.1
48.5
More than previously
The same
Less than previously
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