RETAIL FORECASTS REPORT 2021 | BDO LLP
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CONCLUSION
The radically different world brought about by COVID has forced retailers to rethink, rapidly develop and deploy new strategies. This is particularly the case surrounding the internet and, with the exception of those afforded the simplicity of operating solely online, howmore traditional parts of their businesses can remain relevant. In these pages we have seen howmany of the initiatives successfully deployed by the ‘winners’ of 2020 also help informwhat will be needed to navigate 2021 and beyond: X As after the financial crash, the benefits of a clearly defined and focussed retail proposition to avoid the mid-market squeeze between value and premium players, are once again clear. X Investing in and capitalising on new technology can cut costs and improve sales. In a time when doing these two things is harder than ever, this investment is essential. X Online pureplays have demonstrated how rethinking and rapidly adapting the spectrum from product mixes to marketing messages can help a business to stay relevant at the expense of its competitors. X In this time of change, supply chains must be rethought, revitalised and reshaped to maximise product choice, quality and minimise costs, while ensuring suppliers meet standards for ethicality, supply chain security and environmental responsibility. X Scale generated by robust and effective logistical capabilities can present huge advantages which should be maximised to the full. The many who cannot generate the necessary scale themselves will instead need to boost delivery services through partnerships, while diversifying to compete in other ways, from innovative sales models, to introducing more personalised and service-led elements. X The need to avoid the cost and rethink the burden of physical store space that doesn’t pay its way is more urgent than ever; CVAs and turnover-based rent are some of the dramatic responses businesses have employed to reduce the costs of their store portfolios.
Even as the pandemic now begins to subside, in the years ahead, it will leaves behind a radically different retail sector at every level. The physical space, from shop interiors and town centres and the evolving mindset of the shoppers of 2021 and beyond will mean consumers are likely to continue buying very different things, in very different ways, than they did in 2019 and before. The future retail sector and shoppers will continue to evolve at pace and it is imperative that retailers carefully rethink their strategies to enable them to adapt to this change and remain relevant to their consumer. Given the turmoil brought about in 2020, the relatively small number of retailer casualties thus far and the number that even managed to improve their performances, is nothing short of astounding. This resilience is well known in the sector and gives us every reason to believe our retailers will continue to find ways to survive and even thrive in 2021. KEEP UP TO DATE IN 2021 As a retailer in the current turbulent economic climate, it has never been more important for you to know how you are performing and benchmark your results; against both competitors and the industry standard. At BDO we have developed the High Street Sales Tracker, a leading sales index for retailers which benchmarks like-for- like sales performance within the sector, a vital tool for any retailer. The High Street Sales Tracker is a confidential, weekly exchange of like-for-like sales between retailers, providing busy retail management teams with accurate performance in a timely manner. For more information on the High Street Sales Tracker contact Sabrina Appiah: sabrina.appiah@bdo.co.uk
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