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EMBRACING A NEW INDUSTRY Evolutionary change in the purpose and format of the store was already in motion before the pandemic, but now it’s happening much faster than anticipated. BTy Accenture Australia & New Zealand Retail Lead Michelle Grujin. he COVID-19 pandemic has permanently changed the way people live and work and the way we interact with each other and the world. The effects on the retail industry will be profound and lasting, fundamentally changing how and what consumers are buying. These developments present a double- edged sword for retailers and FMCG companies: there’s a clear opportunity here to grow the business through digital channels, but this brings with it a higher operating cost structure, which can impact already lean margins. Imagine the grocers, pharmacists, special-interest stores and discount chains that consumers typically visit in person. Before the outbreak, these brands may have been developing their own digital shopping platforms, but none could have expected demand for them to grow so much and so quickly. If these retailers can come to grips with digital commerce, they’re presented with a huge opportunity. However, making the leap isn’t easy. Many generate the bulk of their revenues through their physical stores, and therefore need to revise their operations. Moreover, launching a new service requires a higher operating cost structure, while anticipating future demand is extremely difficult when the course of the crisis remains unknown. We’ve seen consumers in droves signing up and building familiarity with new digital services and channels that had historically slow adoption rates, which in turn is speeding up digital transformation. According to Pinterest, more people have experienced the convenience of grocery delivery or store pick-up, with many never looking back. Marketing leaders must embrace and adapt to this new reality. This includes looking to rapidly evolve to optimise media and experiences across ecommerce and social channels where consumers have migrated to, and prioritise the digital shelf that for many is the only shelf left for them to compete on. It also includes investing to battle for digital talent and accelerate the building of skills in their teams, which will likely become an even greater priority both during and after the crisis. These capabilities will be among the biggest drivers of success to win in the post COVID-19 era. The pandemic is putting virtually every aspect of retail to the test. It has demonstrated the need for flexibility to reduce the negative consequences of shocks like COVID-19 in the future. In the end, it will be those brands that are most adaptable to change that will be best positioned to ride out the disruption and help both their businesses and their communities come through stronger. This doesn’t mean that stores are going to disappear. However, bricks-and-mortar premises, even in the grocery, discount and specialty segments, will never be the same. The purpose and format of the store is part of an exciting evolution that is already in motion. The only difference is that it’s happening much faster than any of us were expecting. DATA “Radically rethink your digital content for efficient consumer discovery and conversion to help customers find exactly what they want and need, with their wellbeing safeguarded.” About Michelle Grujin Based in Melbourne, Michelle is the Retail Lead for Accenture Australia and New Zealand and has more than 20 years of hands-on experience in the retail industry. She has a passion for helping retailers understand the future of their industry. About Accenture Accenture is a leading professional services company providing a broad range of services and solutions in strategy, consulting, digital, technology and operations. Serving eight of the top 10 Australian companies by revenue, Accenture employs an innovation led approach to help clients imagine and invent their future. The company has more than 4,500 people and operations in five cities in Australia. For more information, visit www.accenture.com/au-en. in advanced digital assets to optimise virtual shopping experiences and ensure the safety of consumers and frontline teams are clearly communicated. Radically rethink your digital content for efficient consumer discovery and conversion to help customers find exactly what they want and need, with their wellbeing safeguarded. A glimpse into the future Amid all the present challenges, retailers must remember that this crisis will pass. Economies are starting to rebound, albeit to a newer normal. It’s therefore vital to build the capabilities that will be needed in the post-pandemic world, closely monitoring the permanence of the different consumer patterns, behaviours and channel preferences established during the pandemic. It also means thinking about how to define and activate purpose-led programs to ensure long-term credible trust. Retailers will need to be prepared AUG, 2020 RETAIL WORLD 75