Page 101 - Demo

CLICK-STARTING THE FESTIVE SEASON SHOP-A-THON As we progress in our ‘retail recovery’, we’re all experiencing some pretty severe changes to the way we shop, and these behaviour changes will continue as our expectations mirror our health and safety concerns over the summer season and well into 2021. BAy ShopAbility Director Peter Huskins. s I write this article in mid- October, the trading situation with Covid across the states and territories is still more than a little chaotic, with Victorians praying for a slow release from trading shackles, provided the detection of new cases in that state continues to decline. Queensland has been relying on the state election to bring trading relief in terms of opening closed borders. For the other states and territories, trading is as normal as possible within clear and sensible boundaries. Online has grown exponentially, as we all use the online channel to satisfy our retail grazing and buying requirements. Penetration has exploded across most categories and segments. Those retailers that haven’t invested in implementing or updating their ecommerce capability shouldn’t complain if their business slowly declines in the face of competitors that have grasped the future and smartly integrated operations to mirror their bricks and mortar capability, creating a seamless shopping experience. Such moves to building online channel retail capability will be the driving force for a successful Black Friday sale on 27 November, which is predicted to be the biggest ever in the series by a substantial margin, kick-starting what’s set to be a huge online surge to Christmas. Also, Black Friday will definitely pull forward many Christmas related sales across a vast range of categories and segments. What used to be two weeks of vaguely controlled chaos in the couple of weeks leading up to Christmas is now at risk of being significantly flattened as more convenient and ‘safer’ forms of shopping become the norm for many people. The Black Friday effect may well result in a flatter Christmas in physical stores and shopping centres, with fewer people needing to visit these to buy goods. Our shopping frequency has already dropped across most retail categories as people go online, click and collect, or even defer making buying decisions until they feel safer or it’s more convenient. Exploring the physical theatre of Christmas, soaking up the sights and sounds as you walk through stores and shopping centres all geared up for Christmas trading can never be completely replaced by a virtual experience, and many shoppers will still visit these locations and do what they’ve traditionally done: enjoy themselves. However, if I’ve made many of my Christmas and gift related purchases using the online channel and/or Black Friday, my shopping mission for the Christmas season will involve more of a top up, rather than big-basket buys. Certain categories, such as food, will still be chaotic as freshness, range and availability underpinned by personal selection will create foot traffic and a frantic couple of weeks pre-Christmas. Expect long queues and wider trading hours in the hunt for festive essentials. Meanwhile, it’s interesting to consider the case for vending machines – those funny boxes we seem to associate with drinks and snacking at train stations, shopping centres and movie theatres. They offer a touch-free and therefore ‘safe’ shopping experience and could soon become a more vital part of the retail mix. Expanding the use of vending into a virtual environment could open up another previously unviable shopping alternative as a new retail offering in different locations, particularly as more people are using digital payment apps and the role and functionality of products offered in vending machines are challenged by astute marketers. Just a thought. MARKETING About Peter Huskins Peter is a career retailer who is widely known and respected in the Australian FMCG industry. With extensive experience in department stores, DDS, liquor and supermarkets, he has been working with suppliers and retailers developing business, category, customer and channel strategy and competitive points of difference for more than 10 years. Call Peter on 0412 574 793 or email peter@shop-ability.com.au. NOV, 2020 RETAIL WORLD 99