Shops popping up again as customers once again crave the in-store experience

However, demand for quick convenience and speedy delivery also continues to grow adding to the pressure on businesses, writes Fiona Mckinnon

The Covid-19 pandemic forced the retail industry to adapt with more high street businesses opening online and click and collect orders gaining popularity.

Consumers became completely connected with the convenience of online sales and quick delivery – regardless of the sales channel they were using.

It seems that these retail trends are here to stay but are consumers getting more comfortable with being in person again?

To succeed in the future of retail, you must enhance your online offering but also your in-store experience. This means making it more memorable, offering unique services, having highly trained instore staff and using technology to ensure a consistent shopping experience across online and offline channels.

We will likely see shorter and more flexible lease terms with popup shops and short term commercial leasing allowing new entrants to test physical retail.

According to multi-national e-commerce company Shopify: “In the United States, 81 per cent of Gen Z consumers prefer to shop and discover new products in store and more than 50 per cent use instore browsing as a way to disconnect from the digital world.”

The demand for quick convenience and speedy delivery continues to grow and puts pressure on businesses to meet this demand.

As more restaurants expand their delivery offering through apps, we are seeing operators such as Mcdonald’s having to refit many of their restaurants to enhance the customer experience for both the walk in customers and the now huge online delivery demand.

Operators including Scotmid recognise that reliable delivery is now an essential part of the business for food retailers and has teamed up with online apps to guarantee shopping delivery within the hour.

This is proving popular across their Scottish stores as another way of connecting with and serving their customer base.

Free and fast delivery significantly impacts on purchasing decisions, according to a consulting study conducted on behalf of Shopify, which found that 75 per cent of global shoppers want free shipping, while 58 per cent of consumers expect free next day delivery. Also, 68 per cent of shoppers want to know the estimated delivery date upfront.

For those returning to the high street, it isn’t just about finding space, it’s the right space in the right location, at the right size.

Optimal space is coveted – we’ve witnessed this with Gordon Ramsay opening his first restaurant in Edinburgh’s ever popular St. Andrew Square.

The return of his brand to Scotland has been hugely successful, and even during 2021 there was still high demand for that optimum restaurant space.

In 2022 we expect the healthy living trend to continue through wellness foods. We are seeing many new restaurants deliver ‘functional food pairings’ for a positive impact on physical health and wellbeing.

Restaurants such as Choppaluna, Dishoom, Wagamama and many more will be innovating their menus to adapt to this trend.

Consumers are increasingly conscious of the source of their purchases, and millennials in particular are seeking out brands which align with their values.

This has created a growing sense that a brand’s social responsibility and reputation has at least some influence on their purchasing decisions.

So, offering transparency into your business practices, good employee treatment and retention, and the organisation’s social and environmental awareness is important.

It can help to grow trust in your brand while increasing customer loyalty and advocacy. Many in the retail and restaurant sector are already doing this, and many more will follow suit.

Fiona Mckinnon is a Partner and commercial retail expert with Anderson Strathern