Crisis ushers in 'new norm' for consumers, retailers

The coronavirus pandemic could have lasting impacts on both the way consumers shop and on retailers’ operations, according to Scott Clarke, vice president and consumer products industry lead at consulting firm Publicis Sapient.

For example, consumers whose local stores ran out of milk may have tried plant-based alternatives for the first time, and others may be stocking up on vitamins and supplements, or other healthful products, to boost their immune systems.

“The question is: Will those products that we turn to in this time of crisis continue to have high levels of consumption?” Clarke asked.

Because the future path of the disease is still unknown — it could dissipate and return
in the fall, for example, or come back again next year — consumers who may have been
on the fence about switching to healthier diets could potentially change their shopping habits in the future.

In addition, as consumers increasingly turn to online shopping during the pandemic, those shopping habits can be expected to continue, Clarke said. “I think we have kind of turned to this new way of consuming.”

This will result in retailers and their supplier partners investing in more advanced online platforms for direct-to-consumer selling and customer data analysis, he said. Although retailers and suppliers might not be focused on technology investments at this point in the crisis, he said he expects that many emerging technologies, including the Internet of Things and artificial intelligence, will, in fact, accelerate because of it.

“I think these emerging technologies end up accelerating into the mainstream much more quickly,” he said. “It’s not as though we’re shifting 180 degrees. We’re just accelerating the linear paths to a number of things that we were anticipating were going to become mainstream in three to five years’ time anyway.”

Other innovations that Clarke predicted could see increased investment as a result of the crisis include:

• Voice-based technology: Concerns about spreading germs via POS touchpads — now found at nearly every retail checkout station across the country — could spur the adoption of voice-activated technology for such things as authorizing payments, Clarke predicted
• Automation of processes, which could result in store personnel being shifted to more customer-facing roles. “I see a combination of AI, IoT and robotics augmenting the unique skills of humans,” he said. “With machines increasingly equipped to handle labor-intensive and repetitive activities such as back-end order fulfillment and distribution, cleaning, inventory management and logistics, shelf stocking, and even checkout, there is an opportunity for retailers to repurpose and ‘upskill’ store associates to focus on higher-value, customer-facing activities, including personalized service and customer care, upselling and cross-selling.”
• Dynamic pricing, which allows retailers to adjust prices based on market demand and other variables. The coronavirus crisis illustrates the opportunity for this to be applied to ensure lower-income consumers have access to the products they need. “It’s going to be critical for retailers to come out of this as being good corporate citizens, being socially responsible and not opportunistic,” Clarke said