How can retail look like in 2022?

The pandemic has significantly affected the current state of trade, it has changed dynamically and it looks like it will continue to revolutionize. The years 2020 and 2021 were hit by the pandemic, many companies went bankrupt, new business opportunities emerged, which in turn influenced the development of new industries.

How has the pandemic changed trade?

In 2020, especially as the COVID-19 crisis was just beginning, massive closures and home orders have created chaos for retailers. Not everyone was ready for new challenges because of lack of adequate staff, new precautionary guidelines and public fear. It was a survival year, entrepreneurs had to shell out all their savings to stay afloat, others were bankrupted. The year 2021 was calmer in this respect, the industry stabilized slightly. Instead of mass closings, retailers spent a year fighting for suppliers of goods and introducing new features attractive to the modern consumer.

Retail trends for 2022

The 2022 year will probably still be marked by a pandemic, but the latest trend forecasts for this year show that it will not be as drastic for retailers as previous years – as long as they adapt to new consumer needs.

1. Investments in the supply chain

The shortage of goods on the shelves in the early stages of the pandemic showed that the supply chain is not sufficiently flexible and secured. Nothing has accentuated its importance more than the pandemic. Until recently, it was often an unattractive, underfunded part of a retail organization. According to the latest speculations by Retail Dive, many companies in 2022 will focus their capital on improving the supply chain and developing technology towards smooth commodity trading.

2. Building long-term relationships with employees

In 2021, retailers had problems not only with staffing their stores, but also with warehouses and logistics functions, exacerbating the supply chain problems in the industry this year. Some responded with higher wages to attract applicants, but it did not solve the problem. The number of part-time workers has decreased by 7.5% since 2020. Among the unemployed, the main reasons for staying outside the labor market were health problems, poor mental state and family responsibilities. Employers must offer more than higher wages. Recruits want to feel safe in case of unforeseen events, to feel respect and have a real impact on the future of the company. We will look for a job less and less for a while.

3. New potential of clothing brands

In 2020, sales of clothing dropped drastically, it has not been so low for decades. We were locked in our homes so the need to buy new clothes disappeared. People were also afraid of their future, a large part of them lost their jobs, so investing in clothing was a last resort. On the other hand, the year 2021 breathed new life into the fashion market. According to The NPD Group Consumer Tracking Service, in the first eight months of 2021, apparel retailers generated $ 13.3 million more in revenue than in 2019, an increase of 10%. This resulted in a rise in clothing prices, since 2014, online clothing prices have increased by 9%. What will it be like in 2022? Researchers speculate that the situation will calm down somewhat, but post-pandemic life could affect how people dress and what they spend their money on.

4. Flexibility of companies and new services

Companies began to strive more to diversify their activities and cultivate diversified streams of revenues. Increasingly, enterprises that offered only sale of products extend their offer with services, or vice versa. Collaborations of companies with similar areas of activity are also becoming popular. For example, Amazon has started selling its cashless technology to other retailers, which allows consumers to pay for goods in brick-and-mortar stores without waiting in line at the checkout.

5. Popularity of private labels

In an effort to increase market share, the popularity of  private labels is growing. Sellers see them as profitable growth engines that will allow them to earn more sales. More and more often, in stores where we could only buy casual clothes in advance, we can also find sports clothes and even exercise equipment with tags of the same brand.

Stationary stores after the pandemic

Will these speculations prove to be true, we will find out soon. It all depends on the pandemic situation, many countries declare the end of the fight against the virus and a return to normal. This can radically change the sales market around the world. The post-pandemic reality is likely to bring many new needs and entrepreneurs will have to adapt to it. Store design trends will also need some updating. Everything indicates that the demand for stationary stores will increase, which will have to be adapted to modern needs. The Ergo Store has many years of experience, which may be necessary when creating new stores. We invite entrepreneurs who want to introduce a fresh breeze to their commercial spaces and new brands planning to open stationary stores.

Photo: Arturo Rey / Unsplash