The New Normal: Permanent Shifts Expected in the Retail and Hospitality Industries

Delivery

This report comes in PPT.

Key Findings

Retail and hospitality industries among the hardest hit

COVID-19 has impacted high-touch service industries the hardest. In-person physical experiences, such as dining out, were nearly brought to a standstill due to mandated lockdowns and other restrictions, forcing consumers to online channels to obtain goods or services.

Not all these newly christened behaviours will stick post-pandemic

While new consumer behaviours have emerged during this crisis, not all will remain relevant in a post-pandemic era. Some, like the physical barriers installed to keep consumers a safe distance from store staff, are likely just stopgap measures that will fade as a vaccine or viable treatment for COVID-19 reduces virus risk.

New experiences with the momentum and market could become cemented

Consumer attitudes regarding travelling, dining out and shopping will be forever transformed. Many behaviours that have become ingrained during the crisis, such as shopping online, will be retained to some degree even as life begins to approach normality.

Digitalisation is at the core of many of the crisis-inspired shifts

The digital transformation was unfolding across the retail and hospitality industries before COVID-19, but its importance was elevated due to the necessity to survive and stay afloat. During the crisis, retail and hospitality operators shifted to digital in hopes of capturing lost revenue from closures and restrictions.

Build back better becomes the cry of many consumers and business leaders

The pandemic has awakened consumer interest in more sustainable consumption, especially the attention given to businesses that act with a greater sense of purpose. More consumers are looking at how brands treat people as well as the environment, forcing leaders to consider the actions taken to generate profits.