Ending The Retail Apocalypse And The Next Era Of Post-Pandemic Retail Innovation: Insights From IKEAs Chief Digital Officer – Forbes

Closed for good? Not so fast...

As we walk past so many stores with for lease signs in our neighborhoods, its tough to be optimistic about the future of retail. The slow, but inevitable erosion of traditional shopping experiences, aka the retail apocalypse, was long catalyzed by digital Darwinism. The consumerization of technology and its effects on consumer behaviors, preferences, and loyalty has been disrupting retailers going back to the 90s and the launch of Amazon.com. With every new digital trend, retailers and all players in the retail industry were forced to adapt or die. Unfortunately, many moved too slow or in unproductive directions, hastening demise rather than adaptation. Then came Covid-19.

Since the early days of the pandemic and the forced lockdowns of non-essential in-store shopping, retailers were dealt a blow that only deepened years of disruption. With the enduring outbreak, digital commerce soared, shoppers tended to stay home for their safety, and the rolling lockdowns only advancedthe effects of digital Darwinism. These disruptive factors not only curbed physical shopping behaviors, they birthed a new genre of digital-first, conscious consumerism, and opened the door to a new world of hybrid retail opportunities for a post-pandemic economy.

Even with vaccines in circulation, an alternate retail universe continues to emerge and it represents a ctrl-alt-del moment for the future of retail. Whatever innovation plans that were in place prior to March 2020, are now outdated and irrelevant. The next normal as it takes shape will now solve the ills of retail that were long unfolding. In the U.S., for example, there was just too much square footage against too little differentiation and allure for an evolving customer. But, a unique opportunity exists now to get to know who your customer is becoming and innovate in a way that meets and exceeds their demands, online and in store.

The Future of Retail isnt What It Used to Be

The reality is that digital isnt new. Its been chipping away at traditional retail for over 20 years. The pandemic, though, forced 10 years of e-commerce adoption and consumer change in the span of just 90 days at the dawn of Covid-19 according to McKinsey research. And, according to Salesforce research, 88% of customers now expect companies to accelerate digital initiatives. Those that do not, will fall to digital Darwinism.

More than 60 percent of global consumers have changed their shopping habits, and they intend to ... [+] stick with them.

McKinseys research found that the pandemic is accelerating further disruption beyond store closures. Customers are, en masse, seeking better, more intuitive, and digital native experiences. Retention and loyalty are on the line now as never before. In the U.S., according to McKinsey, 73% of customers have tried new shopping behaviors. This includes shopping for new brands, sites, and retailers. Whats more, 75-83% report that they intend to continue their newly adopted behavior. This pattern is consistent in countries around the world.

The future of retail then comes down to 1) personalized acquisition and retention at scale, 2) continually earned loyalty, and 3) adaptability and innovation.

Those retailers who prioritize customer experiences over shareholders and quarterly performance can officially break the shackles that hold them to the past. Leaders must quickly learn how to organize around customers, shift how they understand and how they attract them, and uncover creative, modern, and experiential ways to shop and get goods into their hands.

Were talking about sweeping operational business model innovation and digital transformation for a new world. This takes creating a customer 360, data-driven culture to better understand shoppers as they evolve. It means empowering digitally-literate teams to reimagine physical, digital, and hybrid shopper journeys, and continually piloting promising experiences to learn what customers seek-out, time and time again.

IKEAs Chief Digital Officer Offers a Glimpse into Rapid Transformation and Innovation

Recently I had the opportunity to interview Umesh Sripad, Chief Digital Officer, USA of IKEA, at AppsFlyers virtual digital transformation series, Retail Rebooted (its available to watch on-demand).

IKEA is a global retail brand that was massively disrupted by Covid-19 and found a future forward through data and innovation.

Heres what I learned from Umesh...

Five steps toward reimagining retail innovation and customer experiences:

Customer-centricity, cultures of data and innovation, and the practice of creativity and discovery are critical enablers of a future of retail without using yesterdays playbooks.

The pandemics effects will be with us for quite some time. But digital Darwinism, too, will only persist with every new technology trend. Its never-ending. You can see it as disruption or as an opportunity to take this time when everyone is disrupted, and change the game moving forward.

The good news is that technology and innovation are already on your side to bring to life new experiences in store, online and in hybrid applications. It all starts with a customer 360 perspective, creativity and imagination, and the ability to test and learn.

Just look at the incredible list of disruptive technologies that are in play now, Edge computing, IoT and IIoT, 5G, computer vision, augmented reality, virtual reality and mixed reality, deep learning, real-time and predictive data analytics, AI, automation, cognitive computing, and modern CRM and cloud computing represent the future of retail and business, today. Imagine creating stores, sites, augmented and virtual experiences, and digital-first journeys that personalize engagement online and in the real world, every step of the way.

Its already happening. Now, imagine your role in shaping retails future.

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Ending The Retail Apocalypse And The Next Era Of Post-Pandemic Retail Innovation: Insights From IKEAs Chief Digital Officer - Forbes