Trends gaining speed

During the first months of the COVID-19 crisis, there has been an acceleration of digital retail: Those retailers with strong platforms and sophisticated data analysis have succeeded in connecting with consumers and offering them additional services and value. Consumers are willing to embrace and explore new digital experiences due to public health concerns—telemedicine, online learning, virtual payments, and online grocery ordering and delivery. As the convenience of these experiences increases, we expect these trends to accelerate.

Before COVID-19, the convenience trend was being rewritten by players outside of the industry, putting pressure on the retail industry to adjust to reshaping consumer expectations. As the crisis hit, retailers have had to rapidly roll out conveniences such as buy online, pick up in-store (BOPIS), curbside pickup, and delivery. Those that have the systems in place to offer these conveniences have done comparatively better than others. Our Global State of the Consumer Tracker found from mid-April to mid-May that across age groups, the No. 1 reason customers chose BOPIS is because it is safer, followed by convenience.

However, for seniors, the second reason they were seeking out BOPIS was to support local stores and workers—an indication that perhaps the disruption that consumers have experienced is reprioritizing values. This could lead to an acceleration of new models of retail where health and sustainability become larger drivers. For example, as populations are experiencing cleaner air because of stay-at-home orders, will they be more interested in conscience consumption? As of mid-May, 39 percent of consumers said they plan on buying more locally sourced items, even if it costs more—a trend that increased since mid-April.

We also expect discounters to continue to benefit from ongoing trends. With the unemployment rate moving up rapidly (it stood at 14 percent in April) and one-third of those currently employed concerned about losing their job, many consumers are going to look to cut back and save wherever possible. These retailers may stand to pick up customers, similar to what we saw coming out of the Great Recession.

Back to top