How does the physical bank branch remain valuable?

Join us Wednesday 24th of June at 2pm London Time, to discuss how the role of branches have changed within the new model for retail banking.

During this webinar I-AM will discuss the transformed role of physical branches in the new model for retail banking, drawing on macro consumer trends – accelerated by a global pandemic – and translating these for the banking sector. Along with our experts, Jon Blakeney, Pete Champion and Emre Kuzlu we will explore the physical branch adaptations driven by the changing needs and expectations of tomorrow’s customer.

Click here to Register

Here is a sneak peek into what we will be presenting:

Join us on this webinar, where we will discuss the new model in retail banking, through trends in consumer behaviour and various banking insights.

What are Three Things? Three Things blog posts cover news-bits that showcase an impact on PEOPLE along with INSPIRING works whether it is design, strategy or concept-led, and shares with you entertaining new EXPERIENCES. In other words, the I-AM ethos.

Non-essential shops can reopen in England from 15 June if they meet guidelines to protect staff and shoppers, whilst the UK government is also looking to speed up the timetable for the hospitality sector in an attempt to prevent up to 3.5 million workers losing their jobs.

But what is the consumer sentiment and consensus towards this supposed return to normality?

In the UK consumers are wary of returning to places like pubs, restaurants and coffee shops, new data from YouGov show, even as the government eyes a path to reopening sections of the economy.

Whereas according to S&P Intelligence who surveyed primarily in the US and Canada – 40% of consumers surveyed said they plan to start shopping at retail stores as soon as state and local restrictions on movement and nonessential businesses ease.  However, consumers appear less enthusiastic about eating in restaurants. Just 31% of respondents anticipated dining in at restaurants immediately, with 40% indicating that they would hold off in the short term but return within three months.

Overall research shows that depending on the country consumer sentiment varies greatly. What is certain, is that despite pockets of reopening, net consumer optimism has decreased, and most consumers continue to expect a long-lasting impact from COVID-19.

According to McKinsey’s latest research:

• Even if many countries have lifted stay-at-home restrictions, most consumers still feel the pull toward a “homebody economy.”
• Consumers want extra reassurance to resume day-to-day activities outside their homes.
• Consumers also want to see an ongoing emphasis on cleaning and safety.

Even during these difficult times, Adidas continues to inspire across its commitment to sustainability. In a bid, to accelerate the move to an industry-wide approach to sustainability, they are collaborating with brand AllBirds. The collaborative project, which aims to fast-track solutions to reduce the 700m metric tons of carbon dioxide emitted by the footwear industry annually, will see the two brands coming together to innovate on manufacturing and supply chain processes in addition to exploring renewable material resources.

Following Adidas’s successful initiatives including the Parley collection made from at least 75% intercepted marine trash and its 100% recyclable Futurecraft.Loop trainer. The brand has also committed to a 30% reduction in its carbon footprint by 2030 and achieving carbon neutrality by 2050 as part of its End Plastic Waste initiative.

With social distancing restrictions and the lockdown still in place in various countries, museums are establishments that have yet to re-open. In the meantime, people are still craving entertainment and culture – to cater to this whilst staying safe, museums around the word have worked on launching digital experiences.

“Tech-savvy curators are getting creative with how the public can access their collections, and many are catering to an online audience with insanely good virtual tours. From ogling Parisian Impressionist works in the Musée d’Orsay to a lesson in ancient Greece from Athens’ Benaki Museum to a voyeuristic archive of ex-lovers’ relics at the Museum of Broken Relationships, there are some fascinating exhibitions at your fingertips – all of which are free.”

A New World Where Health is Wealth

By Jon Blakeney

Healthcare has always been crucial to our lives, however in the last few months it has taken up a central position that could remain forever. The Covid-19 pandemic has not only threatened our very existence, but it has also made us question what really matters in our lives and how we want to live when normal life returns. When health is lost all else pales into insignificance. Maslow’s hierarchy of needs is never more relevant than now.

If there is one profound and long-term impact from this experience,  it will be a reappraisal of how important good health is to our ultimate survival and happiness, societal as well as economical. Also, how vital it is to be able to connect with our community of friends and family. These relationships underpin our wellbeing and provide a sense of place in the world. I think this appreciation of how important both communities and good health are to our wellbeing will lead to a completely fresh attitude to life and work. People will look more closely at what defines  a good life balance, maybe the never-ending pursuit of more money will finally be matched against the alternative options of relaxation, freedom and true happiness. This could lead to more home working, less commuting and more time spent looking after our most important asset – ourselves and loved ones.

IMAGINE A WORLD WHERE HEALTH WAS GIVEN THE SAME ATTENTION AS MONEY.

Imagine a world where health was given the same attention as money, seems improbable, yet some signs make me believe that it will happen. We don’t think twice about checking the state of our finances on our smart phones, if not daily, probably weekly. At a glance, can check our income and expenditure and general financial health. At the touch of a finger, we get real-time, up to the minute information about our financial wellness. In a new world where health is valued more than money, surely, we should expect to be able to check our health and wellbeing, real time, any time, at the touch of a button. Our fitness levels, analysis of diet, BMI, blood pressure, stress levels, cholesterol and heart rate would all be there to see. Essentially, this would no longer be a passive exercise, goals and targets would be set just like our finances. Maybe we would even be able to compare ourselves to similar individuals around the world, a connected community with similar goals. Unfortunately, what’s missing are the brands that have yet to connect the dots, to allow for one seamless and fully integrated experience, that put human wellbeing at the very heart of its values. There is a massive opportunity for companies to target and integrate wellbeing, and whilst it’s difficult to predict from which sector they might appear, I think it will prove to be one of the fastest growing areas of our new lives. Even to the extent that industries will hybridise to capture more holistic needs.

A new breed of brands will step into the void that exists between medicine, mindfulness, sport, exercise, nutrition, beauty and diet. Brands that are leaders in wellness, harness analytics, a sense of community and combine mind, body and soul experiences. For instance, merging the best of Nike Run Club and Lululemon’s community with the offerings of Boots or Planet Organic, and backed up with likes of the NHS. The brands that could rise to this challenge are likely to come from one of four sectors. Each will have their core strength and specialism; however, most will have to extend their skills or collaborate with others to create a seamless experience. The likely winners will probably come from the fields of healthcare, fitness, technology or healthy living.

A BLEND OF THE WELLNESS ASPECTS THAT CATER TO PEOPLES’ OVERARCHING LIFESTYLE NEEDS COULD BE SO POWERFUL.

The following analysis sets out the case for change within each sector and starts to identify the brands that might lead the revolution.

THE GLOBAL PHARMACEUTICAL INDUSTRY IS A $1.2 TRILLION BUSINESS

From the fields of medicine to primary and secondary healthcare, this sector should be at the very heart of this new way of thinking. The global pharmaceutical industry is a $1.2 trillion business that probably understands more about the human condition than any other branch of the healthcare sector. Their investment in research alone each year exceeds $74 billion, which sector, apart from the defence industry comes close to that?

What will it take for large pharmaceutical brands like GSK, to follow  a similar path taken by other manufacturers like Unilever and move off the shelf and into choreographed experiences? This approach would allow them to have a far greater influence on the wellbeing of their customers, rather than purely treating their conditions. The introduction of new players from different sectors like GSKs CEO from L’Oréal may help develop a new paradigm in healthcare provision. The primary healthcare sector also has great potential to extend  its influence towards a healthier lifestyle. Particularly the private sector, where the likes of BUPA could choose to extend their roles as a health insurance provider to health facilitator. A dynamic relationship with BUPA could then include real time analysis, goal setting and solution provision at the touch of a button. A collaboration with the likes  of Nike and Waitrose could then start to create an integrated wellbeing ecosystem.

The final piece of the jigsaw within this sector are the retail pharmacies, who in many respects have all the potential ingredients to expand their scope – providing secondary healthcare to local communities. As prescriptions move online, the revenue from retail products diminishes leaving a significant hole in pharmacy incomes. It takes vision to see the evolution, as in the move from car phones to mobile phones and ultimately smartphones. Companies and sectors need to adapt.

So, there is an excellent opportunity to move confidently into not only healthcare services such as check-ups and vaccinations; but also crucial advice about diet, nutrition, maternity and family planning. Collaborations with the likes of Virgin Active and Amazon / Whole Foods could create experiences currently missing from the High Street.

PHARMACIES WOULD TRANSFORM INTO VIBRANT HEALTHCARE HUBS HOSTING FITNESS SESSIONS, TALKS AND EVENTS FOR THE LOCAL COMMUNITY.

 THE PHYSICAL ACTIVITY ECONOMY WILL GROW 6.6% ANNUALLY FROM 2018–2023, TO SURPASS $1.1 TRILLION (£854BN).

Regular exercise is one of the pillars of healthy living. Working out isn’t just about staying in shape; the lines between fitness and the self-care and self-help movement have become blurred. A cult-like phenomenon is happening in group exercise with offerings becoming more sophisticated. The likes of Soul Cycle or Barry’s Bootcamp, combine mindfulness, yoga, soundscapes and other sensory services to improve mental health alongside physical wellbeing.

The physical activity economy will grow 6.6% annually from 2018–2023, to surpass $1.1 trillion (£854bn). The reason behind this isn’t solely because consumers have integrated fitness in their daily habits, but because the sport and exercise sector has become the prominent leader in the wellness industry, by branching out to create combined and relevant experiences.

Activity brands are moving into the hospitality industry by partnering with hotels to offer guests modern and high-end fitness classes, such as Chaise on-demand Fitness has done with The James New York Hotel. Even bolder examples can be seen from the likes of Equinox Hotels, in Hudson yards’ New York, evolving Equinox from simply a fitness club into a true lifestyle brand.

Sports brands like Nike, Lululemon, Sweaty Betty and Rapha have great power in this industry as they have managed to create strong communities – people don’t just shop these brands, they relate to their values.

THE SUCCESS OF THESE SPORT RETAILERS RELIES STRONGLY ON THEIR INTERACTIVE INITIATIVES, EVENTS AND CONTENT.

The success of these sports retailers relies strongly on their interactive initiatives, events and content – such as Nike’s Run Clubs, Reebok’s FitHubs, and Rapha Cycling Club. They have created experiences where consumers don’t only buy into the products but experience the brand values, subsequently becoming a part of consumers’ overall lifestyles. These types of ‘athleisure’ brands already know how to engage with their audiences and have a great opportunity to expand their offering as the movement from healthcare to wellcare grows. With people taking a more active role in their health, athleisure brands with loyal communities have the opportunity to invest and further develop their partnerships in the healthcare sector. The blending of both products and services is the sweet spot for brands engaging in this space. From clothes, watches, to phone apps, and more, these products will see further innovation for consumers to purchase and create personalised wellness ecosystems.

The role of technology in healthcare is potentially game-changing. It can redefine our ability to self-analyse, treat and monitor our health and wellness, 24 hours a day. Technology is having an impact right across the spectrum, from primary and secondary healthcare through to fitness and nutrition.

Technology is allowing consumers to connect immediately with medical experts in a way that only private healthcare previously offered. Starting with the increasing use of telehealth, which has the power to solve global healthcare challenges.

HEALTH IS MORE THAN JUST WHAT YOU EAT OR HOW OFTEN YOU HIT THE GYM, RELAXATION AND SLEEP QUALITY EQUALLY PLAY A ROLE AND ARE TRACKED AND IMPROVED THROUGH TECHNOLOGY.

There are various aspects that impact healthcare costs, from an ageing population to the rise in chronic diseases amongst others; this is creating immense pressure on hospitals and other healthcare services. Telehealth and other technologies can play central role in solving these challenges, with the potential to re-form the healthcare system. Consumers are increasingly expecting a digital experience across all facets of their lives and healthcare systems have the opportunity to empower people to manage and control their own health through technology.

One of the best examples of this trend is the app Healthtap that enables you to take action quickly, by connecting you with a doctor to answer any health-related query. The doctors give actionable advice to help you feel better as soon as possible without the need for a visit. Both meditation and sleep quality can have a positive impact on people’s wellbeing. The Headspace app offers a variety of mini guided meditation sessions, including those aimed to help you sleep, relieve anxiety, and manage stress. Sleep Cycle tracks your quality of sleep, as well as your sleeping heart rate. But its most unique feature is that it wakes you up during your lightest sleep phase in the morning.

Sleep plays a crucial role in good health throughout life. Responding to consumers interest in optimising their health, Sleep Cycle acts as an intelligent alarm clock, analysing your sleep quality and waking you up during your lightest sleep state, so you feel refreshed. Along with digital apps is wearable technology, which is having a major impact on people’s attitude to fitness and physical activity. Brands such as Fitbit have led the way in providing smart sensors that monitor fitness levels, cardio performance and sleep patterns. In many ways, the increase of the 24-hour personal digital support system is similar to what mobile banking has provided for years, we’re now seeing it permeate across all lifestyle needs.

Tremendous advances have also been made in primary healthcare. Smart dressings linked to apps are allowing medical staff to monitor wounds and injuries remotely. Feedback is immediately given, updating nurses about risks of infection and progress of healing.

However, head and shoulders above the rest in the field of healthcare technology sits Apple. Their investment and commitment are unmatched by other technology brands.

The Apple Health app is a one-stop health hub to view all your medical records, and it collates all the data from any wearables, smart phone, sleep trackers and fitness apps. It’s the start of what’s needed; everything in one place: health data, calorie intake, steps taken, blood pressure, electrocardiogram monitoring, body weight, sleep levels, glucose levels, etc, all visible at a glance. Through Apple’s Medical ID it is also possible to show a complete profile of your basic medical records; particularly useful to first responders or paramedics in an emergency. Also, Apple’s Healthkit API allows other brands and devices such as Nike Run Club and MyfitnessPal to share data, all presented in one place through Apple Health. Apple’s plans don’t stop there; they are planning to allow medical experts to monitor and connect with patients through their app and also to connect with health insurers (who are footing the bill) allowing for a potentially cheaper, the proactive relationship between consumers and insurers.

IN 2020, THE GLOBAL MARKET FOR HEALTHY FOODS IS EXPECTED TO REACH $1 TRILLION

The healthy food movement has become an unstoppable trend and the link between diet, nutrition and holistic wellbeing continues apace. In 2020, the global market for healthy foods is expected to reach $1 trillion, and its swift growth shows no signs of slowing down. Those in the food industry are trying to stay ahead of the curve, with 30% of all food companies now invested in healthy foods.

The rapid growth of the recipe boxes and the meal kit market has allowed consumers to align their eating habits to their lifestyle goals. Brands like Prep Kitchen and Gymology have pioneered an approach to matching meals to fitness and lifestyle goals. These brands have successfully bridged the gap between diet and performance; the next step is to merge this approach with biohacking and DNA analysis. This science-led approach is being pioneered by brands like DNAfit who are providing consumers with genetic analysis of their health risks, nutrition levels and levels of wellbeing.

It’s been said that social media has changed the way we eat. Not only does it allow chefs, health experts and nutritionists to post photos and recipes to a wide audience; it’s connecting people across the world, creating support and advice networks around eating well – making it easier for people to follow a healthier or more organic diet.

VEGANISM ENTERED THE MASS CONSCIOUSNESS IN 2019, WITH MORE THAN 50% OF UK ADULTS INTENDING TO EAT MORE VEGETABLES

More than 50% of UK adults intending to eat more vegetables, with 10% looking to switch to a vegetarian diet and 6% a vegan diet in the next 12 months. This is combined with an increased focus on many and varied dieting types including paleo, low carb, flexitarian, Dukan and ketogenetic. The desire for nutrition also continues to grow, as illustrated by brands like NutriBullet who have kick- started a health revolution in super food nutrition extraction.

The Likes of Whole Foods and Planet Organic are two of the best examples of retailers that have pioneered a new attitude to healthy eating. In many ways the acquisition of Whole Foods by Amazon in 2017 is one of the most significant developments in the healthy eating sector. The demand for nutritional supplements also continues to increase with brands like Holland and Barrett now trading in over 16 countries.

The healthy living sector is still dominated by niche operators who lack the scale to provide an international solution, however when you combine the strengths of Whole Foods and Amazon, the result could be significant. If one brand was to lead the revolution in health from this category it would be Amazon, as they have the scale, customer data and capital to dominate the market. What’s missing at the moment is a proven desire from Amazon to become an authority in any one category, should this position change then the sky is the limit.

“IF YOU ZOOMED OUT INTO THE FUTURE, AND YOU LOOK BACK, AND YOU ASK THE QUESTION, ‘WHAT WAS APPLE’S GREATEST CONTRIBUTION TO MANKIND?…IT WILL BE ABOUT HEALTH.”

Tim Cook, CEO Apple

So, who will lead this move, that puts health at the front of our minds and at the heart of our lives? Who will be the brand that will step into the void between medicine, mindfulness, fitness and diet?

WHAT BRAND WILL BE THERE FOR US 24 HOURSA DAY, BE OUR DIGITAL DOCTOR, COACH AND CHEF WRAPPED INTO ONE?

In summary there are two main contenders. Firstly, Amazon who have the customer data, the distribution and the ability to supply almost everything that a healthy life would require. Whether its meal kits, fresh produce, supplements, prescriptions, medication, or fitness equipment – the list is endless. Amazon is in a fantastic position to use their unmatched infrastructure for the benefit of human wellness. Their ambition, however, seems to lie more in supplying the ingredients required for a healthy life rather than to choregraph the lifestyle.

The next contender is Apple, who have made a long-term commitment to healthcare; such as recruiting dozens of doctors and forming its own healthcare group serving its employees. In a recent interview, Apple CEO Tim Cook posed a rhetorical question about the future of his company: “If you zoomed out into the future, and you look back, and you ask the question, ‘What was Apple’s greatest contribution to mankind?” After a moment, Cook answered his own question: “It will be about health.”

It’s that vision that will result in Apple leading the way in personal healthcare. Unfortunately, what they are missing is the logistical and delivery capabilities that Amazon have to offer. The future health dream team would see these two giants of our time collaborate, however even when you combine their skills something is still missing. The likes of Nike Run Club and Lulu Lemon have proved in an amazing way that it’s possible to mobilise a whole generation if you have an inspiring vision. It is this last missing ingredient that will prove essential if we are to move health to the top of our agenda throughout the world.

THE FUTURE OF OUR HEALTHCARE IS IN YOUR HANDS AND IT WILL BE TECHNOLOGY LED. IT WILL BE THERE 24 HOURS A DAY. OUR DIGITAL DOCTOR, FITNESS COACH AND NUTRITIONIST CONVENIENTLY WRAPPED INTO ONE – A COMFORTING THOUGHT.

 

If you’ve missed out on the EFMA e-council webinar, check out the highlights of our presentation here!

We took part in Efma’s Physical Channels e-Council, where I-AM’s Group managing Director Jon Blakeney discussed the challenges and opportunities in bank branch transformation.

• The core challenges around branch and bank transformation.
• Applications for branch transformations and key takeouts.
• Sharing the Covid-19 impacts and insights across banking & financial services.

Here’s are the takeouts:

By taking advantage of the latest innovations in technology, service design and customer experience it is possible to transform the traditional branch model.

This repositioning will allow the bank to redefine the role of its branch network, creating a model that is more efficient, more relevant and intelligently integrated into customer’s lifestyles.

We’ve moved from branches first, to devices first. We no longer have to visit branches, technology offers choice and empowers us to have control over the experience. It is important to acknowledge that today, there is a ‘base level’ for banks. It needs to ensure that all basic transactional services can be handled through digital solutions across desktop, mobile devices, remotely as well as in branch. However, whilst technology offers countless opportunities, similar to the approach with Amazon Go stores, it’s about merging the experience to enhance the physical space with supporting digital innovations.

Innovation in banking shouldn’t just stop at developing the best financial tech solutions. It’s about a full brand experience and omni channel touchpoints.

Evolve from being simply functional to more emotional

Peoples’ finances play a huge part in making their dreams come true and supporting them through key life moments. Think about how the physical branch experience may help support customers towards or through these situations.

To transform your branch experience requires an assessment of 4 key components.

People: Understanding their function and orchestrate the choreography of the team and its structure based on your specific customer needs and wants.

Process: In order to successfully transform the branch network, your processes will need to adjust in order to facilitate services based on customer needs and future proof transactions as well as advice.

Technology: It is imperative that we consider the best innovations to use within the branch, and that the processes and staffing model can support customer engagement and facilitate services and access to your various offerings.

Customer Experience:  This encompasses all of the elements that the customer can see; what are we trying to make our customers think, feel and do through the design of the experience and layout of the branch. This is informed by the other 3 components

We developed a customer centric, store format strategy for Virgin Money, including a family of concept specifically tailored to serve the needs of local communities, the first of which being trialled at the High Street Kensington, Birmingham and Manchester stores.

Key Takeouts for Virgin Money:

1. We began with our research stage by interviewing staff, customers and stakeholders. Followed with workshops, where we defined the new Virgin money customer experience and the role of its physical space.

2. Assessed the vision: People are at the heart of this. We must break down traditional banking barriers and build new communities.

3. Based on the vision, research insight and an understanding of the new Virgin Money experience, we created a branch format strategy. This family of formats caters to different location and audience needs and supports the creation of community hubs.

 

An insight into leading grocery trends and their wider impact – how other sectors can learn from the innovations and approaches taken by the essential-retail industry.

As supermarkets remain one of the few retailers able to continue physically trading with consumers, we look at how grocers are responding to the impact of coronavirus and discuss what these trends could mean for the future of the physical customer experience. With lockdown demanding consumers stay indoors, new patterns within at-home food consumption and online shopping are also beginning to emerge, highlighting implications for the digital customer experience.

The retail landscape has been dramatically affected by the pandemic. By far the most notable impact has been the sheer acceleration of growth and diversification that businesses have had to undertake to survive. Since the outbreak Aldi, a discount supermarket with a previously limited online presence, has started selling groceries online in the form of food parcels. Pret has also modified its approach by pulling forward the launch of its supermarket coffee range by 6 months and indicating that there could be further changes to its business model to ensure it can continue to reach consumers. In a matter of weeks, we’ve seen the acceleration and materialisation of trends not expected to emerge for at least another 2-3 years. Subsequently, we’re likely to see more businesses expediting pipeline projects and developing existing successful projects to last through the pandemic and beyond.

Grocery shopping habits are changing. In the height of stockpiling, grocery sales grew by nearly 50% and during the first few weeks of lockdown 600,000 households ordered their groceries online for the first time. In line with government advice, consumers are now shopping less. They’re also spending more and planning their meals; as a result, the weekly shop is back and online orders are accounting for a growing number of sales with UK shoppers forecast to spend £16.8 billion on online groceries in 2020. This trend extends beyond the UK; Italy, France and Spain’s online grocery markets are also growing, and research suggests consumers from all 4 countries only intend to increase their online grocery spend.

“SUCH A RAPID DELIVERY MODEL COULD BE ADOPTED BY OTHER RETAILERS LOOKING TO SERVE CUSTOMERS WITH MORE CONVENIENT DELIVERY SOLUTIONS, UTILISING LOCAL STORES AND DECENTRALISING OPERATIONS.”

In a matter of days, the number of people shopping online has risen to levels not anticipated for 15 years, leaving retailers racing to catch up. The issue that many grocers face lay in their (in)ability to keep up with demand; prompting the likes of Asda and Waitrose to double delivery capacity and Tesco to increase it by over 100% to exceed 1 million slots per week. To keep up with orders, Sainsbury’s has been trialling home delivery from its closed convenience stores with its new Chop Chop app. If the trial proves successful, Sainsbury’s will be able to deliver up to 20 items to consumers all over the UK in as little as an hour. Such a rapid delivery model could be adopted by other retailers looking to serve customers with more convenient delivery solutions, utilising local stores and decentralising operations.

The recent spike in online orders also suggests that brands must deliver a positive and memorable digital experience to retain customers, especially as the growth in online shopping is expected to continue.

With the majority of consumers now spending nearly all of their time at home, combined with mass restaurant closings, there has been an enormous rise in the number of home-cooked meals. With the trend predicted to stay, more people are cooking from scratch and trying more ambitious recipes, with a particular uplift in the number of people cooking restaurant-inspired meals.

Experts have highlighted that this search for restaurant-quality food at home is likely to stay post-corona and will continue to be exacerbated if a recession follows the pandemic. As consumers seek to use their newfound skills, it’s likely that they will expect brands to broaden the opportunities for home cooking. Some restaurants themselves recognise the growing popularity of at-home meal boxes; Patty & Bun recently launched DIY Kits allowing customers to recreate their iconic burgers and Doughnut Time has also released at-home decorating kits, so customers needn’t miss out on their favourites.  The trend indicates that more brands may opt to follow this approach and extend their existing offering to engage directly with consumers at home. Food delivery boxes have traditionally been popular amongst urban millennials looking for convenient ways to cook at home.

“EXPERTS HAVE HIGHLIGHTED THAT THIS SEARCH FOR RESTAURANT-QUALITY FOOD AT HOME IS LIKELY TO STAY POST-CORONA AND WILL CONTINUE TO BE EXACERBATED IF A RECESSION FOLLOWS THE PANDEMIC.”

However, we’re now seeing a growing demand from older generations, as those who may be particularly vulnerable to corona and therefore less able to shop conventionally, proving the boxes have massive potential for mass-market appeal. Recipe box company Gousto saw its Q1 sales shoot up 70% against 2019 figures and traffic to its website has increased tenfold since lockdown. As a result of the recent market growth, Gousto has also secured an additional £33m investment, further indicating the appeal of the meal-kit sector.

As retailers look for new ways to reach consumers, we may see grocers go head to head with brands like Gousto in a bid to expand into growing markets.

Climate change has remained a key topic throughout the outbreak of coronavirus, with the environmental impact of a near-global lockdown evident in the news; from air quality improving in cities across the world to water pollution reducing so much that in Venice the canals have become clearer and wildlife is thriving. The visible, direct impact of reduced human activity, combined with the heightened concerns around supply and sourcing safety as a result of the virus, has led experts to predict that consumers are likely to maintain an increased focus in sustainability, both in terms of how they live and how they consume. The pandemic has shone a light on just how interconnected the world truly is, most effectively demonstrated by grocery supply chains.

Whilst international operations are usually viewed favourably, running an entire business reliant on suppliers halfway around the world has since proved flawed. Since the outbreak over 40% of Brits are shopping more at their local independent stores and research shows that over 1/3 intend to continue to do so after lockdown. Ranging from green grocers to wine merchants, consumers are now looking closer to home to source their goods.

The move towards a more local supply chain is not new. Last year Ocado revealed that it had acquired the majority share of JFC – Europe’s biggest vertical farm in Scunthorpe – and had also adopted a similar approach in the USA, locating the farms within or near its warehouses in order to supply fresh, sustainable produce quickly. Until now, vertical farms have predominantly been used in supermarkets to boost customer engagement but developments in technology indicate the practice is becoming more commercially viable. To tackle supply chain disruptions caused by coronavirus and become more self-sufficient, Singapore has begun turning car park rooftops into urban farms and recently outlined aims to produce 30% of its food by 2021. Furthermore, whilst it may not be a branch-wide strategy, there’s huge potential for retailers to enhance the customer experience with urban farm-inspired experiential offers, particularly in flagship locations. In September M&S unveiled its first in-store farm, allowing customers at its Clapham store to pick their own herbs. Waitrose is also exploring plans to create in-store ‘pick your own produce’ allotments with vertical farm company Lettus Grow.

With businesses looking to safeguard their supply from future threats, we may well see an increased interest in vertical farming – particularly from grocers seeking to not only produce their stock but to do so on site. Such an approach could also extend across sectors seeking to elevate the physical customer experience – might we see more cafes and restaurants growing their ingredients, delivering their customers ultimate freshness?

There’s no doubt that safety concerns have changed the way we shop; social distancing rules have required retailers to limit capacity which has inevitably led to queues outside stores and lowered shopper satisfaction. In order to improve the experience, an app has been released enabling shoppers to check queue times for their local supermarkets. Supermarket Check-In also allows users to rank stores based on the length of queue and stock levels, providing real time data to consumers looking for a quick and painless trip. Experts anticipate that corona-related safety measures – like those first adopted at supermarkets – are likely to continue for the foreseeable future as nervousness around safety will remain at the forefront of consumers’ minds, requiring retailers to think differently about how they operate for at least the next 6-12 months.

“EXPERTS ANTICIPATE THAT CORONA-RELATED SAFETY MEASURES ARE LIKELY TO CONTINUE FOR THE FORESEEABLE FUTURE (…)REQUIRING RETAILERS TO THINK DIFFERENTLY ABOUT HOW THEY OPERATE… ”

The biggest behavioural change in the UK since the outbreak has been the increased regularity of hand washing as people fear spreading the virus. One clear indicator of this is the rise in card transactions as consumers seek contactless ways to pay. In March, The Co-op saw a 10% increase in card transactions, a huge contrast compared to the 1% shift to card payments that it usually sees every 3 months. Contactless payment methods were already being trialled – and implemented – before corona. However, the outbreak of a global pandemic has triggered retailers to reconsider the way their customers purchase goods, to reduce the risk of spreading the virus. Mercado Pago, an Argentinian internet payment company, has been encouraging purchases on its platform by offering discounts when customers use its contact-free QR code system. In a bid to provide their own solutions amid heightened consumer safety concerns, Russian supermarkets are also racing to launch facial recognition payment.

Already of growing interest before corona, contactless payment methods are likely to be adopted more widely having been further developed and encouraged as a result of the pandemic.

 The outbreak has boosted the sense of community spirit amongst consumers, evident in multiple grocers launching volunteer cards for customers to help the vulnerable & elderly get their shopping. This societal shift towards collectivism points to a new avenue for retailers to pursue, with suggestions that we could see the introduction of incentivised schemes to encourage customers to purchase goods on behalf of their neighbours and local community. Such initiatives could also be adopted by other industries looking to build on this growth in cooperation amongst consumers, perhaps in the future you may be able to click and collect your neighbour’s order from your local fashion store alongside your own.

“THE PANDEMIC HAS SHONE A LIGHT ON THE BRANDS THAT TRULY LIVE AND BREATHE THEIR VALUES.”

In order to provide customers with support and advice during the lockdown, Waitrose & John Lewis are running a whole host of free, virtual services including digital nursery sessions, wine tasting and cooking classes and the partnership plans to continue this once the pandemic is over. Extended online offerings provide brands with the opportunity to bridge the gap between their physical and digital operations. By acting as more than a business and adding genuine value to consumers daily lives, brands will be able to reach consumers in their homes.

The pandemic has shone a light on the brands that truly live and breathe their values. Many argue that companies will need to go above and beyond their usual operations and create social value (CSV) in order to retain customers; it will no longer be enough to just talk about brand values, companies will need to prove them. Employee-owned US grocery chain Publix is buying excess produce from its suppliers and donating it to food banks to support those affected by corona.

This is a defining ‘do good’ moment for business, a time to build genuine relationships with customers and have a real purpose, now more than ever, as lives are at stake.

With the threat of a global recession and further economic instability looming, consumers will be evaluating every purchase decision they make. After months of nervousness and significantly reduced spending, there is an expectation that consumers will remain cautious post-pandemic. As we look to the future, here are our 5 predictions about what this will mean for brands:

• DIGITAL CUSTOMER EXPERIENCE

E-commerce will continue to grow as consumers become adjusted to online shopping and continue to rely on it, meaning brands must consider their digital customer experience just as much as – if not more than – the physical experience.

• EXPANDED OFFERINGS

The lines between sectors are becoming blurred as companies diversify their operations in order to remain relevant. We are particularly likely to see growing numbers of food brands enter the at-home market as businesses aim to reach consumers in lockdown. These expanded offerings are likely to continue post-pandemic.

• LOCALISATION

We’re seeing a move to local in all senses, from the localisation of supply chains with grocers producing products next to distribution centres to nationwide chains satisfying online orders from their local branches.

• SAFETY FIRST

For the short term, the in-store experience is likely to be dominated by safety concerns. As consumers are expected to consider every visit in a post-pandemic world, brands will need to reassure and build trust with their customers.

• FUTURE STORE EXPERIENCE

In the mid to long term, the in-store experience will once again become a defining brand engagement moment, requiring brands to think about the future of their in-store experience and offer their customers something new and exciting.

In this report, we started to map out the retail trends that have risen during Covid, and analysed how they may impact the future of retail experiences.

What might the new shopping experience look like post-Corona?

What considerations should physical stores take on after this crisis?

How has the pandemic affected consumer behaviour and what does that mean for future brand relationships ?

You can check out the highlights below, and should you want to view the full PDF report, you can get in touch with Lindsay Tarkian at [email protected]

FUTURE OF RETAIL – THE NEW STORE EXPERIENCE : Exploring the potential post-Covid retail trends

This unprecedented crisis, has transformed the way we approach our daily lives – changing our shopping habits from purchase to in-store customer journey. Subsequently, forcing retailers to adapt and develop new solutions to respond to the challenges posed by coronavirus as well as consumer needs. Amid all these emerging trends, which of them will persist and cement themselves – from tech to hygiene, what might the new store experience look like?

We’ve gathered these insights in the hope of shedding some light on what the future of stores and retail experiences might entail. We hope these various points can support and inspire you amidst this difficult time. Whilst during this period, digital and online touchpoints are key, we strongly believe that physical retail experiences will still have a great role to play; especially in strengthening customer relationships and supporting brand loyalty. “The New Store Experience” report introduces considerations for the future, on how you might adapt your physical experience and customer touchpoints efficiently. If you want to find out more about what this means for your brand, and view the full report, don’t hesitate to get in touch.