2020 has taken the retail industry  by surprise, not unlike all other industries, the uncertainty of this year has made some retailers blossom and others struggle to survive. Based on this study by KPMG, today we discuss the trends in retail for this year.

There are four main trends in the retail industry this year, however, they are not new, they have just been accelerated by the global changes in the world.

1-Business Model Evolution

The dilemma of the brick-and-mortar vs. online stores has been brought up to the center stage in view of global confinement. Growth can no longer be driven by physical stores, they still have a place in the industry, but they cannot be the driving force behind the retail business.  

2- Purpose Has Become More Important Than Ever

Based on consumer demand the private sector has moved across all industries from the profit-over-people dogma and moved towards people-over-profit. The global pandemic only made that trend stronger, more and more consumers buy or boycott based on the values of a brand.

3-Cutting Costs is No Longer Such an Easy Task

Traditional ways to cut costs are no longer enough to maintain businesses afloat or revamp them, aggressive immediate cost-cutting strategies have shown retailers that they need to go much further to stimulate long term growth. This translates into more investment in the enhancement of existing assets that already provide value.

4-The Power of the Consumer Has Increased Even More

Consumer demand was already identified as a driving force behind innovation, and thus taken very seriously, today we see this trend getting stronger. Customers want availability above all, especially in these uncertain times, and that will change the operations of several retailers. Retailers that know their customer well and know which channels to be on have a clear advantage.

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