Deloitte retail trends for 2021.
We believe great minds do think alike and below we share Phoenix Wharf’s thoughts around some of these trends, using our own examples.
1. Net zero retail…now!
Moving from aspiration to implementation across the whole value chain.
Phoenix Wharf is working on a modular retail design concept called Project Reflex which captures the essence of flexibility. Big flagship store formats are too expensive to run and we believe that the local smaller neighbourhood high streets’ popularity is here to stay. Using our knowledge in retail and exhibit design, we are currently exploring a low investment and scalable retail kit which can help brands or small independent businesses have a physical presence on a much smaller footprint but still be impactful. We are aiming for the kit to be manufactured from recycled material and can be either resold to another brand or fully recycled at the end of its lifecycle. Watch this space...
Image copyright: L’Occitane
2. Digital by design
A digital first approach is rapidly transforming retail.
2020 proved to be a transformational year for retail – offering a compelling case for a digital first approach as stores closed due to COVID-19 restrictions and consumers were told to shop from home. To reach locked-down consumers, retailers had to take advantage of the only channel available, scaling their online capability. This has led more and more retailers to adopt a digital first approach.
Phoenix Wharf’s thoughts on Digital Dreaming focus on the ‘phygital’ area in-between, as retailers shadow customers moving from e-search to physical spaces in increasingly sophisticated ways and consumers use tech to impact on what they find when they get there
3. Thoughtful experiential
The re-birth of the store.
The growth of online has forced retailers to reassess the true value and role of their stores. In 2020, experience-based retailers struggled with a lack of footfall and opportunity to engage consumers. We believe experience remains essential to the future of the store – but it needs to be more thoughtful.
Phoenix Wharf believes there’s still potential in these great central locations for something new and exciting: lifestyle-oriented bazaars that move with and beyond the lessons of online shopping to offer a wide range of both established and unexpected brands to a broader demographic, whilst organising products and floorplans in a completely different way. Read more about our thoughts on the Future of the Department Store.
Image: Future of the Department Store
4. Re-localisation
The polarisation between real destinations and hyper local shopping.
Lockdown and the growing number of people working from home has led to a return to local shopping, which Deloitte believe will continue beyond the pandemic. They think the market will polarise between real destination stores that will continue to attract consumers and "hyper local shopping", which bodes well for the future of the high street.
Phoenix Wharf’s recent work with The Bristol Loaf epitomises ‘hyper local shopping’. The project won Gold at the London Design Awards for our ethical, accessible, community-oriented supermarket design for The Bristol Loaf in the city’s Bedminster area, celebrating the best local produce and ingredients by bringing together a café with retail offers including its own bakery, cheeses from Two Belly, new wine offer The Bristol Vine and fruit and veg from Hugo’s Greengrocer.
Image: The Bristol Loaf
5. Health becomes the new battleground
Competition in the $4.5trn global wellness industry is heating up.
One of the most notable changes in consumer behaviour last year was the increased focus on health and wellness. This has created increased demand for wearables and data-services to provide personalised programmes. Consumers have dedicated more time and more money to looking after themselves and this has created a big opportunity for retailers.
Phoenix Wharf believes there is a gap in the market for a new generation of wellness centres, taking up some of the space left by the high street retail casualties of the last 12 months, encapsulating everything relating to the mind, body and spirit in a single location. Read more here
Image: New generation of wellness centres
6. Lead with purpose…
…and create a culture of inclusion.
Last year Deloitte said that they believed that purpose was the new digital. They expected purpose to be as disruptive in the next ten years as digital has been in the last ten. In 2021, it will be more important than ever before to lead with purpose and create a culture of inclusion. Just as with digital, we believe retail leaders need to ask themselves: how do we embed this into our business?
Phoenix Wharf’s design philosophy has always been to create Substance with Soul for our clients, linking our clients’ brands and environments with their purpose and bringing this to life in their physical environments and communities.