Commentary

With Asia’s inflation rate seen to soar to  4.5% in 2022, consumers have become more mindful of their budgets and spending priorities. While decreased discretionary spending spells bad news for retailers, the holiday season provides a window of opportunity for brands looking to recover from the sales slump in the past quarters – if they know how to connect and engage with consumers the right way. 

As Singapore tentatively eases COVID-19 restrictions, the Lunar New Year tunes and décor may signal a returning to life for in-store retail. This should be exciting news for many brick-and-mortar retailers and consumers who have been deprived of in-store shopping experience. In a recent Sensormatic Solutions study, almost one third (30%) of Singapore consumers said they missed shopping in physical stores.

As we kick off 2022, e-commerce continues to gain momentum with retailers refining their strategies and upgrading their capabilities to address the ever-evolving landscape. Chinese New Year is right around the corner and other shopping events will instigate fierce rivalry as online and in-store retailers compete to out-perform one another by providing consumers better discounts, more personalised deals, and various payment methods and fulfilment options.

As the holiday season revs up to its climax, retailers have much to celebrate even as they prepare themselves for one final last-minute Christmas shopping spree.

The COVID-19 pandemic has had a profound impact on all facets of life, the grocery and retail sector included. Consumers have increased their online interactions with retailers and brands and will continue to do so long after the pandemic is over. 

Since the first lockdown in 2020, many retailers had to pivot to e-commerce for the first time in a bid to help their businesses survive.

A Guide for Brands to Win the Mega Sale Season

The Covid-19 pandemic has driven the market and led to major shifts in consumer spending in the past 12 months. The grocery sector is one to watch, as more than half (54%) of Singaporeans spent more on groceries in the past 12 months, according to Worldpay from FIS’ 2021 Generation Pay research. The grocery boom is poised to continue, with 9 in 10 consumers expecting to spend the same or more on groceries in the upcoming year.

If it sounds like we’re going around and around in circles, we are!

To say that the retail sector in Singapore has been hard hit over the past year will be an understatement.

Across the globe, COVID-19 interrupted almost everything in the physical world with some activities and sectors saved only by digital. The technology players could bring new advantages and opportunities as business operations and client engagements all migrated successfully online. Inevitably, the retailers in mega malls and hospitality sectors faced the most significant challenges with numerous players either ceasing their operations or had to shift to a virtual alternative.

Many retailers, especially fashion retailers, are stuck with excess amounts of inventory meant for their stores over the pandemic. However, with the high seasonality of fashion products, retailers are now being faced with ageing inventory and cash tied up in stock that is becoming obsolete.

Stores have always been at the epicentre of retail disruption, be it the onslaught of digital or the recent pandemic. Despite ominous predictions, stores have risen like a phoenix to cater to shifting business landscapes and shopper behaviours. Retailers who view their stores through a new lens will realize endless possibilities because:

Modernization of commerce has emerged as a fundamental need for the future of retailing.

It is a tough time for the retail industry. 2019 saw retailers struggling to make ends meet as sales fell consecutively for seven straight months. Meanwhile, the year 2020 has brought COVID-19 and widespread lockdowns that may well be the death knell for brick-and-mortar retail businesses. 

The iconic Great Singapore Sale (GSS) goes online this year as the retail industry creates a “new normal” shopping experience amid the COVID-19 pandemic. This may well be a sign of more disruption to come as consumer habits evolve and retailers recalibrate their business strategies.