RTIH flags up some of the trends that have been propelled by the pandemic and are set to remain once it is over. 

1. Convenience converts

Younger Brits have been driving a convenience store revival during the coronavirus outbreak, according to research from PayPoint.

The company surveyed 2,000 people and found that 56% visited their local convenience store for the first time after lockdown started on 23rd March, which rose to 68% among 18-24-year olds and 59% among 25-34-year-olds. 

51% plan to continue shopping in this way to support local small businesses post-lockdown. 66% agreed that their local store had a positive impact on the local area, and 71% thought of it as an integral part of the community. 

65% said their local had everything they need. This is supported by PayPoint’s EPoS data, that shows a significant average sales uplift of groceries (36%), bread and cakes (52%), alcohol (64%), and household items (75%) between March and July, compared with the period between November 2019 and February 2020.

Nick Wiles, Chief Executive at PayPoint, says: “As lockdown continues to ease, the data tells us that ‘convenience converts’ will continue to use their convenience stores for a range of services, from everyday food and drink purchases to parcel pick-ups and drop-offs, utility bill top-ups, cash withdrawals and much more.”

2. Subscription services

Boosted by the lockdown, the UK subscription economy is now worth £323 million, with spending on such services increasing by 39.4% year-on-year in July, according to research from Barclaycard Payments. 

This found that one in ten retailers launched their first sign-up service during lockdown, with a fifth looking to develop their offering in this space even as restrictions eased.

Kirsty Morris, Managing Director for Account Development, Barclaycard Payments, says: “While lockdown certainly provided a catalyst for the growth in subscriptions, our data shows the popularity of direct-to-door and at-home products and services is only set to continue.”

3. Grocery shopping goes digital

A new Waitrose report shines a light on how the coronavirus outbreak has turned the UK into a nation of online shoppers.

Based on OnePoll research of 2,000 Brits (not just Waitrose customers), it found that 77% of people now do at least some of their grocery shopping online, compared to 61% a year ago.

60%, meanwhile, purchase groceries online more frequently since the pandemic, with 41% citing convenience as the reason and one in five saying that they hadn’t considered it before Covid-19. 

The most marked increase is within the over-55 age group, where regular online shoppers have risen from 8% in 2019 to 23% in 2020. 

James Bailey, Waitrose & Partners Executive Director, says: “Even before the Covid-19 pandemic, there are few retailers that wouldn’t have predicted the continued growth of e-commerce relative to physical shops.” 

“But what would have previously been a gradual upward climb in demand has – with the outbreak of Covid-19 – turned into a trajectory more reminiscent of scaling Everest.”

4. Changing attitudes toward alternative payments

One in three UK consumers would like to see a further increase of the current £45 contactless spending limit, according to a YouGov survey of 2,081 people commissioned by ACI Worldwide. 

Among that group, 40% want the limit to increase to £100.

“The Covid-19 pandemic has been a massive accelerator and has led to behavioural change among consumers that normally would take years,” says Andrew Quartermaine,” Vice President, Merchant Solutions, ACI Worldwide. 

“As shopping habits have changed, so have the attitudes toward alternative payments. Our research indicates that this shift is not temporary but rather the new norm, and retailers need to take note.”

But don’t write off cash just yet. It will have an important role to play in a post-coronavirus world.

5. Stores increasingly being used as hubs for online fulfilment

Many retailers have seen a dramatic shift toward online shopping during the coronavirus pandemic.

We were seeing this trend before Covid-19 hit, but there has been an acceleration of using stores differently and meeting the omnichannel customer where they want to be met.

M&S, for instance, is tapping Doddle technology for two new Click and Collect trials: in-store contactless collection (at its Hempstead Valley, Camberley & Longbridge stores) and drive-up collection (at Camberley). 

Neil Phillips, Head of Digital Operations at M&S, says: “Great digital technology in our stores is really important for offering our customers a great experience and for connecting the online and in-store journey.” 

“These trials with Doddle offer market leading solutions for Click and Collect, a proposition which will only grow over the coming years as the trend towards online shopping continues to accelerate. We’ll be listening carefully to our customers’ feedback.”

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