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WHERE ARE WE TRENDING THIS YEAR? Are the changes in shopping behaviour seen in this year of disruption here to stay? Let’s look at the current trends TBy ASMCA and Joe Berry Chair Keith Quigg. SALES & MARKETING rends appearing in the Australian retail market are wide diversions from where industry predictions were one year ago. Many of the new trends are a result of the disruption caused by the Covid pandemic, but some were emerging before this began. Some are raising concerns on both sides of the retail supply chain and may be influences that never go away. The shopping mall, its future uncertain, is at the centre of one of the key continuing trends. Rumblings from many retail lessees about the high rent cost had already been heard pre-Covid with more than a few debates aired about returns to high-street locations or greenfield sites. Bring on a pandemic and the reality of rent costs are suddenly a concern for all lessees. Most retail landlords are now fighting a rock-and- hard-place situation, not wanting to reduce their incomes, but knowing that empty space is more than a lost rent. The effect of a mall decline will depend on where you’re located. In Victoria, lockdown has meant that malls are simply dead spaces, yet the shopper in Queensland is finding that the mall hasn’t changed a lot and that foot traffic remains at a high level. Yes, in that state there are some empty shops or some that have chosen not to reopen yet, but overall, the adventure of physical-store shopping remains the same. At the same time, the lockdowns and movement restrictions have made shopping a more personal event – with a computer screen, a credit card and a closed door so your partner doesn’t see the shopping cart. A big lift in online sales has prompted a rush by many an entrepreneur to set up a business to take advantage of the trend. Meanwhile, the big retailers have sped up their online activities as both a capture strategy and insurance against the possibility that online business might stay at pandemic levels. The online trend has no favourites. The lift in grocery home delivery, the move to other sources of food items and increasing education on what foods we should be consuming continue to shape the trend and move the goalposts. General merchandise has benefited from the online surge, while clothing, which was already becoming a generational favourite, continues to grow. With the online challenge has come new payment methods, such as Afterpay, Zip Money and Openpay, that give the shopper an additional urge to spend with the supposed comfort of time to pay. Whether this has all the trappings of a good deal or is simply a trap is yet to be determined, but in the meantime these facilities continue to arrive: no interest now, but a series of fees that may not be so cheap in the end. There are, however, some mitigating circumstances, the effects of which are yet to be felt. If we were bemused about shopping trend predictions in February, we should be feeling the same now. What the consumer will do when the disruption is no longer part of our lives is unclear. It may be fair to forecast that the return to the malls will be massive – a measurement of our freedom and the desire to go back to the way it was. It’s almost inevitable that the higher level of online shopping will be maintained, while a rapid and strategic move by retailers to enhance the experience of in-store shopping is likely as they aim to retain the business levels on which they’ve built their infrastructure. They will certainly be supported by the mall owners, who will develop their own promotional platforms, hoping they can drive the foot traffic back through the car parks and into the retail space. How these trends work together is interesting to consider. Income support from government, payment methods that allow future outflow of funds, and greater experience levels in stores will give the shopper much to contemplate. With Christmas nearly here, many important decisions are about to come into play in the Australian retail market. Certainly, in-store movement will be huge, with brands and stores needing all the help they can get. The companies providing extensive merchandising services to the retail market have all developed high-level protocols for safe working practices in stores and for the safety of the shopper and worker. The one trend that has not changed is the expanding essential service merchandisers provide. It’s the same as it was in February, just better. The Joe Berry Award is now open for its 35th year. The topics set for 2021 reflect the disruption trends that Covid-19 has brought about in the industry and the changes that have been faced as a result. What we’re asking for from our essay writers is their forecast for the industry both during and after Covid. What will be the trends in six months’ time? Eight Joe Berry Award podcasts are available at joeberryaward.com.au and on Facebook and YouTube to help 2021 entrants get started with their essay. After 35 years, the Joe Berry Award program continues to grow and recognise the trends of the day. About ASMCA The Association of Sales and Merchandising Companies Australasia (ASMCA) provides links to member companies and advice to potential clients on how to approach an SMS company and which will be best suited to cover their needs. For details on ASMCA members and service, call 0403 003 809 or email enquiries@asmca.com NOV, 2020 RETAIL WORLD 103