Future of Retail

What is the future of Retail in 2022?

Transparency is the linchpin.  Shoppers want to see how Business is doing Business.

As we enter the third year of the pandemic, commerce for retailers and restauranteurs is becoming more difficult.  The supply chain backlog, shrinking work force, online shopping competition and delivery services costs have taken a bite out of sales.  It is a miracle we still have small business owners who can muster up the energy every single day to go to work and push the broom, deposit the money and cover for sick employees.  It breaks my heart to see some of our small franchise owners like Subway and Cold Stone Creamery working all hours of the day to keep the doors open.  It is no longer a shock when I stroll by Starbucks to grab a coffee, and the sign on the door says, “See you tomorrow–we had to close for the day due to staffing issues.”

When we hunkered down in 2020, fashion retailers struggled to compete with sweats and slippers.  Then in 2021, retail fashion sales shot up 13%, as 8.5 million shoppers realized they had nothing to wear when they were called back to work. 

“In 2021 retail fashion sales shot up 13%, as 8.5 million shoppers realized they had nothing to wear when they were called back to work”

Just as things started to seem better, we were hit with inflation, stock shortages, fuel price increases and Omicron.  Home prices shot through the roof; it almost became laughable.  How do we all manage around this crisis?  I am sharing a few of my success stories I have observed in the last year in hopes it might help my retailers—feel free to share them with yours.

TikTok

It is a hard sell when I tell my clients they should advertise on TikTok. I know it seems like that is crazy, but it has helped Gap, Abercrombie, H&M, Chipotle, Dunkin’, Gymshark, San Diego Zoo and many more.  You can use feed ads, videos that charm and entertain.  I am not here to promote TikTok, but I will be using it in my Gorilla Marketing strategy.

2022– A Year of Reckoning

Ideas that are working for retail and restaurants include incentives for customers. Domino’s is giving customers a tip if they pick up their meals.  Grocery stores and restaurants are tired of handing over 30% of their profit to delivery services.  Many retailers and restaurants are taking their business back from these high-priced service apps and are providing delivery themselves with incentives, rewards, and advertising campaigns that are making us all aware that we need to shop small and stay loyal, or we won’t have many options in the future as we see more retail closures. 

I have so many Chipotle points I could feed my entire family; I may have to throw a Cinco de Mayo party.  I also have a zillion Crumbl Cookies points.  I am saving those for a dinner party; they are very impressive on a platter especially since so many people are not familiar with Crumbl.  The retailers who have great apps are the retailers who are receiving the love and loyalty from customers.

Instore Experiences

It is so fun to go into Dick’s Sporting Goods and see a rock-climbing wall or try out your swing at their virtual golf screen.  Toys “R” Us has moved into Macy’s and will provide a new experience for the children’s department.

Smart retailers are providing incentives of 15% OFF if you follow them on Instagram and more discounts if you show your outfit on a platform and share it.  This is priceless testimonial advertising.

Simple ideas that retailers can do starting now:

• Provide Live Events—prizes, raffles still work!
• Have an Interactive Display or Activity
• Create an Immersive Environment
• Generate an Incentive Program
• Create an App
• Update daily stories on your social feeds and create highlights of new merchandise.
• Show off what is happening inside your business with a fun video on TikTok.
• Keep a Book of your Best Customers and follow-up with them by sending photos of new inventory that fits their needs or style.

At CMA, we try to remember to remind our retailers that expectations from consumers is at an all-time high, while forgiveness is in short supply.

Thanks to my gutsy, awesome clients, employees, friends and family who have hung in there with me for the last couple of years.  We have made our way out of the darkness, and I am so grateful to have all of you in my corner—I love all of you more than you know.  Especially you Larry—you know who you are.

Source: Fast Company, Retail Dive, HubSpot

Kim Kelley, Marketing Guru

Kim Kelley is the Principal at Creative Marketing Arts. With over 30 years in the Shopping Center industry, Kim offers creative ideas blended perfectly for REIT Advertising and Marketing. With an eye for perfection and creative flair, Kim offers all clients Out of the Box solutions.