34 BDO LLP | RETAIL FORECASTS REPORT 2021
RETAIL IN THE AGE OF COVID-19 CONTINUED
KEY SECTORS IMPACTED AND EXAMPLES Fashion – COVID-19 has placed a particular spotlight on the scruples of fashion retailers. Boohoo found itself de-listed from ASOS, Next and Zalando after allegations of low pay and unsafe conditions at a supplier’s UK factories, while numerous retailers have received praise for switching factory production to PPE, including Burberry, John Lewis and Laura Ashley. Sustainability also remains high on the consumer agenda and Primark recently installed recycling collection points in all 190 UK stores, as part of attempts to prevent old clothes ending up in landfill. Items will be reused or recycled into products such as insulation, toy stuffing and mattress filler, with profits going to UNICEF. Health & Beauty – While the consumer focus on reducing single- use plastics may have lessened amidst a short-term desire to prioritise hygiene, it has far from disappeared. L’Oreal is among those looking to improve its credentials relating to plastic by introducing make-up recycling bins across 1,000 UK branches of Tesco, Boots, Sainsbury’s and Superdrug. The used items will be collected from the shops, sorted, cleaned and recycled into plastic pellets, which can be used to make other products, such as outdoor furniture. Grocery – Amid the pandemic, grocers have introduced dedicated opening hours for vulnerable people which reduces the anxiety faced by these individuals, while M&S and Aldi are among those to offer food boxes online, containing essential products to ensure vulnerable customers can obtain everything they need. Amid the current growth in online shopping, Asda has launched its first fleet of new delivery vans intended to reduce carbon emissions and the number of miles driven. The vans will deliver grocery to customer homes, featuring a 10% improvement in miles per gallon, while increased internal capacity should allow the first fleet of 25 vans to make deliveries to more customers, in turn reducing miles and carbon emissions. Furthermore, the delivery vans received insulation with 5,500 recycled plastic water bottles, making the vehicles 300kgs lighter compared to the standard model.
RETAILERS AS CONSCIENTIOUS OPERATORS
Despite the disruption of the pandemic, sustainability remains a key consideration for consumers, with environmental and ethical issues such as sustainable packaging, animal welfare, and food waste taking on varying levels of significance in the context of COVID-19. Concerns over excess packaging, was a major theme of 2019, and are currently being overshadowed by a preference for packaging formats and materials that effectively preserve hygiene. However, the inadvertent environmental benefits of self-isolation, business closures and travel restrictions have compelled consumers to reassess their dependence on indulgences such as animal products and air travel, while the suspected origins of the virus have led to a challenging of views about factory farming and wildlife trade. Consumers have also been empowered to believe that their behaviours, product choices and collective influence can make impactful changes on a global scale and even with all the short-term challenges posed by COVID-19, it is crucial that retailers act in a conscientious fashion.
Consumers who say they are often/always influenced by the following factors when buying products I prefer
How familiar/trustworthy/risk- free the product is How well the product/service aligns with my time and money constraints How the products/service impacts my health & wellbeing How enjoyable or unique the product/service is How ethical/environmentally- friendly/socially responsible the product/service is
60%
60%
59%
57%
44%
Source: GlobalData weekly COVID-19 global consumer survey, June 2020
Made with FlippingBook HTML5