Why 2020 Didn’t Feel The Best Year For Retail In Decades?

Oddly, 2020 turned out to be one of the best years in the overall retail sector in the past 20 years.
Also, more than 27 retailers declared bankruptcy in the first nine months of the year.
So if overall revenues are increasing, where have all the shoppers gone?

In January, before the coronavirus swept across the U.S., just over 15% of retail sales occurred outside of physical stores. That number spiked to about 20% of sales in April, and has since leveled back to about 16% of sales in the three months ended in September. That doesn’t point to a populace that no longer enjoys shopping outside of the home.

Key Trends:
1. If consumers have money, they will spend it.
2. Playing field in retail is undergoing rapid changes. Convenience matters now more than ever.
3. The brands we love are changing. Price and relative quality are still the primary drivers of consumer behaviour, but have become blended with a new consciousness.

Retailers who will win are those who watch their pennies, focus on the customer, and build and sell great products that meet needs and fulfill aspirations.