Unwrapping The Biggest Holiday Retail Trends Of 2021

According to one estimate, it is expected that 3 to 5 billion more people will come online by 2020. By following a digital-first strategy, retailers can move beyond existing traditional borders and tap into new and emerging markets in order to increase their customer reach. The Covid-19 pandemic rocked the medical industry and its effects were felt throughout all economic sectors. The retail industry, in particular, received a huge blow as brick-and-mortar stores had to close. It also meant that businesses had to step up their online game to continue engaging and attracting customers despite the ongoing pandemic.

Retail Trends 2021

For our 2022 retail industry analysis, we asked 50 senior retail executives across multiple subsectors to share their views on where they see the industry in the next 12 months. The resulting data, combined with insights derived from 15 Deloitte retail subject-matter specialists, client work, and prior research, offers a snapshot of strategies and investment plans that help inform the future of the industry. This page is part of JLL’s quarterly Global Real Estate Perspective. Follow one of the links below to find out more about global real estate market trends and outlook by sector.

That said, there have been gains in certain subcategories in the apparel space. For example, 22% of shoppers plan to visit fast fashion retailers (like H&M) for their 2021 back-to-school clothing needs. With this new emphasis on digital learning, it should not surprise retailers that many families have shifted spending categories to better afford the new technologies required for education in 2021. Lara is a principal, strategy director, and global retail leader at Gensler with over 20 years of experience spanning retail, brand, hospitality, and entertainment experiences. She translates complex global consumer trends into innovative and powerful strategies that generate engagement between brands, places, and people.

Retailers are earning the most revenue from Facebook, Instagram, Twitter, and TikTok, respectively. Despite the mass move to eCommerce and, therefore, the importance of having an omnichannel strategy, 32% of retailers say not knowing their options keeps them from selling items through newer online or social channels. And 29% say delivering consistent shopping experiences across online and physical channels is a challenge. As attack surfaces continue to widen across systems, devices, people, partners and infrastructure, it’s evident that embracing technology as a key driver of growth can amplify opportunities for complex cyber-attacks. Retailers must establish comprehensive threat protection that takes into account customers, employees, contractors, partners, applications and systems. Think beyond the perimeter firewall to secure cloud, mobile, and IoT operations and data wherever it resides.

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To make the most of this key consumer spending period, brands must adapt to the supply chain/inventory shake-up as well as the evolving digital customer journey. Packed with predictions, this article aims to give you insight into the trends expected to shape the biggest retail event of the year. The BTS clothing and accessories category shrunk by -1% compared with last year. Although apparel is still the largest spending BTS category, growth is stagnant in this area because there is still significant uncertainty about how local school districts and officials will approach the school year. Because some parents are worried about a return to remote learning, this category will likely not see significant growth again until the pandemic is officially over in the United States.

Retail Trends 2021

What we found was eye-opening — the who, what, where, and why behind our shopping experience is going through a metamorphosis. There is an opportunity for retailers to make a name for themselves and beat out competitors through omnichannel technology and automated tools. Further, the rise of personalization as a retail industry trend has paved way for the application of more advanced and innovative technologies such as Artificial Intelligence . For example Flowers.com, an online flower delivery store, uses an AI-powered personal assistant that learns each customer’s preferences and predicts suitable gifts for every order.

Private labels sell three times as much as branded products, which forces CPG manufacturers to rethink their strategy in the coming years. York City, uses local data to stock shelves – and then restock them based on the community’s desire. Robots have also become a popular options for retailers, doing “everything from floor cleaning to material handling and now shelf analytics,” as explained by TechRepublic.

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Businesses that want to give themselves the most opportunities to succeed blend the best of online and retail shopping (brick-and-click), catering to every type of consumer. Online shopping provides convenience, optimal pricing, and oftentimes more selection and options than traditional retail stores. Square partnered with Wakefield Research to see how retail managers/owners and consumers are moving ahead in 2022. Retailers are tapping into the qualities that make them unique, reworking them, and using them to their advantage as consumer needs have flipped.

Global | Investor | March 01, 2022 | Office Global Real Estate Perspective March 2022 JLL’s latest Global Real Estate Perspective looks at market dynamics and the prospects for 2022 and beyond. Oracle’s Retail Asset Community Knowledge portal is a treasure trove of material ranging from Oracle Retail customer journeys to global event proceedings and the latest updates on Oracle Retail roadmaps. These regional reports shine a global lens on how the United States, Latin America, Europe and the Middle East, and Asia Pacific fare compared to the rest of the world.

“That is the tipping point where you really need to run the operations of your business digitally,” says David Rusenko, Head of eCommerce at Square. Aaron is a principal and design director who helps lead Gensler’s global lifestyle sector. With more than 20 years of experience, Aaron’s portfolio highlights his talent for creatively translating brands to the built environment through a range of award-winning projects. Less than one-fifth (17%) say buying online and picking items up in-store is their favorite means of shopping. In 2020, just 7% indicated this was the primary way they were shopping for non-essential items.

By introducing merchandise they may not otherwise have access to, brands will be able to increase foot traffic and help customers turn a ten-stop shopping event into five. At CASTUS, we leverage our Teams’ extensive retail expertise on behalf of clients. CASTUS is committed to driving long-term growth for your company in a constantly evolving business environment.

  • A good friend of mine leads retail analytics for one of the top global luxury retailers with locations in most major metropolitan cities around the world.
  • Instead of purely fulfilling online orders, stores need to evolve to support ecommerce for customer research and procurement.
  • Users can make purchases directly from the social media app or site, rather than going to a third-party website.
  • Instagram is one of the first social media networks to experiment with a native payment system .
  • Lara is a principal, strategy director, and global retail leader at Gensler with over 20 years of experience spanning retail, brand, hospitality, and entertainment experiences.
  • The ubiquity of connected devices means that consumers demand a seamless experience across multiple touchpoints.

IDC forecasts strong 12.3% growth for AI market in 2020 amidst challenging circumstances. Differentiating your business from the crowd means going the extra mile to make your shipping fast, efficient, and free. Sustainability is not optional anymore, as far as consumers are concerned. AR can be used to “preview” items before committing to a purchase . The discussion of AI naturally dovetails with voice search and personal assistants. In the US alone, adult ownership of smart speakers and smart homes has reached 55.6% in 2020 (Voicebot.ai, 2020).

Retail Technology Trend #4: Checkout Free Stores

After months of disruption, change has become not only a constant but the norm in retail, with no expectation of slowing down. As we close out 2021, we find ourselves not looking back, Online Retail Industry Trends in 2026 nor ahead at the change to come, but at an inflection point—ready to ride the next wave and embrace adaptation. And, of course, the rest of 2020 played out amidst a global pandemic.

They then watch their shoes being made in the shoe manufacturing area. Customers can even stop by the “customization bar” where they can customize sneakers and have them shipped to their homes. Because it’s targeted, this appeals to the customized experience consumers expect today.

Retail Trends 2021

As a result, they were able to create new customer-centric mobile applications easily in order to enhance customer experiences. Retailers that want to survive in the industry must embark on a path to upend their customer engagements and ensure they are attending to the growing culture of immediacy. The retail industry is going through an enormous amount of change. Customer behavior is changing, and their expectations are higher than ever. It is important for retailers to understand some key industry trends in order to ensure that their businesses are successful now, and for years to come.

Similarly, shopping center, Westfield London, has submitted plans to turn a part of the unit currently being used by House of Fraser into a WeWork-style office space. Both these ventures will help boost footfall and open the gateway to transforming the traditional retail store. To effectively compete in the next challenging phase of retail, we explore trends https://globalcloudteam.com/ in the future of the physical and digital landscape, bringing you the four major areas to watch for in 2022. Allan Jay is FinancesOnline’s resident B2B expert with over a decade of experience in the SaaS space. He has worked with vendors primarily as a consultant in the UX analysis and design stages, lending to his reviews a strong user-centric angle.

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“Vision 2020” will be unforgettable for reasons no one ever expected. The pandemic pushed consumers across the globe to migrate out of city centers, adopt a hybrid work schedule or fully work-from-home. Manage logistics effectively in 2022 to keep consumers happy and revenue flowing. Gen Z to attract and help educate others on this new form of payment. Enable more local manufacturing to take place and limit reliance on offshore production. Market and enterprise intelligence will be paramount to navigating brand success, allowing you to analyze the competition, optimize your business, and automate system improvements.

Retail Trends 2021

Retail trends today are seeing brands get creative about design elements that inspire customers to take photos inside the store and share them on social media. Smaller or fewer shops, combined with eCommerce, provide multiple ways for customers to make purchases, and in 2020 the options of curbside pickup and buy-online-pickup-in-store grew in popularity. In other words, it’s all about increased convenience and whatever works best for each consumer.

Shoppers will be understanding if they are kept in the loop on their orders. That has seen over 8,000 store closures is proof that businesses quickly need to adapt to a change in consumer behavior to survive. Though more shoppers are going online, there are still consumers who rely on mortar-and-brick stores for their everyday needs. “Choosing the correct color temperature, which is measured by its K rating, of LED bulbs is integral to a retail space,” according to Alcon Lighting.

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Technology from an IoT ecosystem to target the user’s consumption habits. No worries—it will have a ton of regulations to limit the type and amount of data it can harvest. Rivate labels comprise 25% of a typical shopping cart, but a millennial’s would have 32%. However, store closures, of which there were 11,000 in 2020—up from 9,300 in 2019—show how the pandemic has shortened what was supposed to inevitably occur in the long-term (TB&P, 2021). These shifts in retail are less of a seismic shift and more of a gradual change. We’ve compiled a list of the changes that we believe are the keys to a successful retail enterprise in the next decade and now more urgent than ever.

Customer 360

It’s not just about the experience of going to a store in person, but the experience customers have while inside the store. As the desire for reconnection drives our economic and cultural recovery, Gensler’s 2021 Design Forecast presents design trends and strategies for creating physical environments that can bring people back together in the post-COVID world. While the pandemic accelerated many changes already underway in the retail industry, savvy retailers have remained agile amid unprecedented e-commerce growth, supply chain disruption, and global and economic health crises. What has changed and evolved are the varying types of consumer/shopper data available to retailers to consume, harmonize, and use. The shutdown and re-openings of 2020 exacerbated already faulty supply chain systems and processes for many retailers.

Instead of purely fulfilling online orders, stores need to evolve to support ecommerce for customer research and procurement. Seamless curbside pickup, buy-online, pick-up-in-store , as well as inter-store transfers or direct shipping from stores will remain expected services. Retailers also need to offer more flexible payment options to help alleviate in-store traffic, especially during peak holiday periods – exploring RFID tags for self check-out or mobile payment options. One common retail industry trend is the ability to tap into new markets and channels. Technology has made it easier for retailers to tap into international and emerging markets that would otherwise be difficult to reach. Retailers are no longer confined to a single location or market and many of them are able to expand their operations overseas by following an effective digital strategy.

Also, as the market becomes populated by a younger demographic, companies are finding it hard to abandon traditional modes of thinking. 60% and 55% of retailers , respectively, incorporate the technology into their purchasing process. Instagram is one of the first social media networks to experiment with a native payment system . Private labels are selling three times as much as branded products . The biggest reason retailers are going in-house in the last few years is because they earn an average of 25% more. Compare this to a typical 1.3% gross profit they get from a typical grocery item and it’s easy to see why private labels have become more mainstream.

In addition, inventory for Winter went unsold during lockdown, allowing no time for clearance. With Spring and Summer fast approaching, many retailers were impacted by supply chain issues with limited available inventory during reopening. To top it off, many retailers traditionally place holiday orders during this same period of time. Inaccurate inventory counts led to consumer frustration after orders were accepted, not filled, and ultimately refunded or canceled.

In a survey published by the University of Arizona, a majority of respondents thought that traditional retailers are part of the social fabric and their demise will be bad for the economy in the long run . A true artist at heart, Roche shapes designs from his own paintings or the inspirations of daily life. In the early 2000s, while other companies were turning to their manufacturers for options, Roche led the way in producing original flooring designs earning multiple industry awards and recognition for his luxury vinyl designs. If you have any questions about Parterre’s flooring or wall products or how we can help with your next store design, please don’t hesitate tocontact us.

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