Page 32 - September 2020

RLI RETAIL INSIGHT

Covid-19 accelerates evolution

of retail and leisure

Covid-19 has undoubtedly had a monumental impact on the retail
and leisure sector, but much of the behaviour changes we’re seeing now
had begun to gather momentum before the pandemic hit. Coronavirus
has accelerated a process that was already underway and here, Andrea
George, Retail and Leisure Director at Bruntwood Works explains more.

f we cast our mind back to life before the virus, we were focused It is innovative businesses like Mital’s - individual, locally connected
on the climate crisis, the seemingly never-ending age of BREXIT and efficient - which will flourish and breathe new life into local
and a long term period of evolution for our high street. Throughout shopping hubs and city centre high streets alike.
Ithese unsettling times, consumer behaviour has been gradually This desire for the distinctive is a key driver for the experience-led
shifting, and now we see many of those trends accelerated through the retail and leisure trend so important before the pandemic - this trend
impact of a pandemic which forced the retail sector to “shut up shop”. will continue to play a central role as customers place even more
It’s well documented that COVID-19 has brought about a return value on shopping and eating out. This is something that is borne
to shopping locally. This is a stronger incarnation of a pre-existing out by the success of our iconic, independent shopping emporium,
trend for supporting local and independent businesses. In recent years Afflecks in Manchester. Famous for its eclectic mix of independent
consumers in a wide breadth of communities have shown a preference shops, a day at Afflecks is a true shopping experience… it’s not
for supporting their local independents - for talking directly to the something that can be replicated online and it has continued to thrive
owner, maker or chef. So, it is unsurprising that this trend is here to stay against a backdrop of high street challenges. Afflecks has found its feet
post-pandemic. During lockdown, independent butchers, grocers and quickly post-lockdown, thanks to a dedicated army of fans looking for
chemists were hugely important in serving their local communities. As an experience they can’t get anywhere else.
delivery slots at Tesco dwindled, it was often the local greengrocer who As part of this same trend for experience, I also expect many
came to the rescue, particularly for the vulnerable stuck at home. These big brands to use their prominent city centre locations to create
habits are now a firm part of the family routine and the businesses a destination where their customers are given a ‘VIP’ experience.
involved have built up a well-deserved loyalty from their new customers. Central locations could turn into flagship concept stores and act
Smaller, independent businesses were also often better able to adapt and primarily as a showcase shopfront. Brands are likely to, for example,
swiftly adjust their offerings in line with the speed in which things changed create more of a hyper-local hangout experience, offer personalised
during lockdown. We’ve seen this kind of agile response from businesses services, and collaborate with local independents such as beauty
across many of our sites. Mital Morar, owner of Stretford Foodhall at brands and coffee bars. We’ve seen great things in this area from
Stretford Mall - one of our sites in Trafford, Greater Manchester - was able the likes of Nike, Lush and Primark. H&M’s flagship stores in
to adapt his offering in a way that allowed him to best serve the community, Hammersmith and Stockholm now include clothes rental services
as well as sustain his own business most effectively and earn an even bigger and beauty bars, where customers can get their hair, makeup and
army of devoted local fans. Stretford Foodhall is an independent grocery nails done – a sure sign of things to come.
store and “foodhall” with a coffee shop, rotating street food traders and a Whilst experience is vital, that’s not to underplay the importance
flower and plant shop. When the dine-in side of the business was forced of online shopping. As the biggest reason behind high street shifts
to close, Mital and his team focused on the grocery retail, meeting the in decades, digital retail is of course not going anywhere, with
demand for those hard-to-find lockdown products like pasta, flour, yeast COVID fast-forwarding the trend and highlighting the importance
and milk; teaming up with local delivery app Shocal to quickly enable them of an omnichannel structure for the majority of retailers. Although
to offer home delivery, and even creating his own range of bottled cocktails some brands are still resisting this approach, it’s likely that it will be
for customers to pour at home. Within a few weeks, he had also reinstalled embraced more swiftly now, post-Covid-19.
a takeaway and delivery version of his dine-in concept… and all the while Priorities and values have also shifted significantly since coronavirus
engaging with his audience expertly via social media. arrived in our lives, and this will filter through to the way we shop
and spend leisure time. We recently reopened our outdoor food
and drink venue, Hatch in Manchester, and we’ve seen an increase in
the length of time people are spending their compared to the same
period last year, as well as a surge in the amount they are spending.
Customers are enjoying meet ups and spending time with loved ones,
and so dwell time has naturally increased. It’s this sense of community
that will be integral in the retail and leisure of the future.
Consumers are looking for demonstrations of empathy from
retailers too, something that has been increasing alongside sustainable
and ethical shopping trends. This has now accelerated to a new level
with customers looking to retailers to reassure them of their own
safety in store. Consumers want to know that retailers care about
them and the wider world. And with customers having less to spend,
and feeling uncertain and vulnerable, brands need to be strongly
connected to their customer base like never before.
Things are changing fast for the retail and leisure industry - but those
who listened carefully to their fans and communities pre-Covid-19, and
who continue to do so, are best placed to weather this storm.

32 RETAIL & LEISURE INTERNATIONAL SEPTEMBER 2020