With considerable shifts in consumer spending patterns and shopping habits, the Covid-19 pandemic is driving changes in retail business models and operations. The Covid-19 crisis has rapidly accelerated the decline of brick-and-mortar retail in favor of ecommerce.
Deloitte’s 2022 Canadian retail outlook polled 30 executives working for firms reporting annual global revenues between $300 million and $50 billion, and it reveals 93% are confident in their organization’s ability to meet revenue targets, with 77% of those surveyed expecting them to even rise.
“ Agile is critical.”, said by Marty Weintraub, partner and national retail leader for Deloitte. The Deloitte outlook says retailers need to develop employee-centric strategies that make retail a meaningful place to build a career. However, 63% of respondents plan to engage younger Canadians to promote retail opportunities, while 40% plan to better explain career advancement opportunities.
As more Canadians make purchasing decisions based on their payment preferences, payment providers need to constantly innovate to meet shifting consumer demands and expectations. Modernization of Canada’s payment systems – including the introduction of Canada’s new real-time payment system, which is expected to go live in 2025. This will help meet those expectations and will deliver innovative and convenient payment options that provide more choice to businesses and consumers.
In order for struggling retailers to stand the test of time, it’s critical to adjust strategy to meet the demands of consumers of the future, supporting their desires by transforming the retail offering to match the new standard of shopping.
Interesting Statistics
– Most retail executives surveyed (77%) expect revenue to rise in 2022 and almost all (93%) are confident in their organization’s ability to hit its growth targets;
– 77% plan to modernize their supply chain;
– 86% of retailers expect customers to prioritize stock availability over retailer loyalty;
– 85% of retailers expect to invest in supply chain automation and inventory management;
– 70% of Canadian retailers said staff-free, cashier-less stores will be common in the next 10 years.
– 40% of Canadian retailers said the resale/second-hand goods grow significantly in the next 10 years
Sources:
https://www.edc.ca/en/guide/covid-19-retail-sector-impact.
https://retail-insider.com/retail-insider/2022/04/retailers-in-canada-continue-to-see-challenges-following-2-years-of-pandemic-uncertainty-deloitte-report.html
