Retail undergoes unprecedented transformation: 5 years in 5 months

The intensity and speed of the changes that are being needed to deal with the pandemic make "5 years in 5 months" not a force of expression. In the wake of these changes, digital has gained a strong momentum. "Digital channels such as e-commerce, social networks and messaging applications have shown vigorous growth during quarantine and are expected to consolidate in the post-Covid period. This will be the great positive legacy of the current moment", said Eduardo Terra, President of SBVC, on the last day 30, during live promoted by Dotz. According to Terra, the share of e-commerce in Brazilian retail, which closed 2019 at 4.5%, is expected to jump to somewhere between 6% and 6.5% by the end of this year. But online sales are the tip of the iceberg. "In the post-pandemic, all engagement and relationship with the consumer will be done differently. Promotional levers are increasingly digital and buying behavior has changed to no longer go back to what it was before. Collecting data and generating insights to understand this new consumer will be critical," he explains. For Renato Meirelles, President of the Locomotive Institute, the change in consumer habits was generated by necessity. "Research shows that 64% of Brazilians have had losses in income and 58% are in arrears, with an average of four accounts per person. Everyone will need to make the money more, and this creates a new logic of consumption", he says. In this new logic, tools such as loyalty program awards, cashback and coupons will gain space. In addition, changing consumer priorities, with greater concern for product hygiene and safety, will generate new challenges for retail. "If consumers are going to have more concern about safety, full stores will be avoided and sanitizing places will gain traction in decision-making. All this comes to stay, are structural changes in retail", comments Meirelles. At the moment, retail needs to digitize its business – and fast. This does not mean, however, that it should put aside excellence in execution. "One of the big risks is doing the scan poorly done. Not necessarily those who have a good physical supermarket can reproduce this online. A bad experience can drive the customer away not only from the channel, but also from the brand," terra says. Another important factor is information security. "This is not a small risk: we have seen cases here in Brazil of retailers being invaded during the crisis, since, in the rush to migrate the entire operation to digital, security was in the background. Companies need to do their homework," he warns. For the president of SBVC, while it is necessary to take care of the current moment, it is necessary to plan for the future. "A big challenge is balancing the short-term agenda, preserving cash, with the long-term vision, of making the necessary investments for the future," he says. The consumer already demonstrates, for example, a willingness to avoid physical contact at the point of sale. "Touch retailing will gain a lot of momentum with the valuation of contactless payment means and self-service systems. Companies will need to rethink the POS, incorporating digital elements and taking into account health issues, even after a vaccine is developed against the virus", analyzes Terra.