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Retail’s still getting physical not phygital John Ryan heads to the US to discover what might be in store in retail’s future, and discovers that bricksand-mortar players have every reason to remain optimistic
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t this time of year, you will invariably stumble across predictions about what the year ahead holds, and although I’m a little late to the forecaster’s party there is some justification to what follows, largely owing to the fact that I’m recently back from both CES and NRF. ‘What and what?’ you’re probably saying. Well, CES is the Consumer Electronics Show. It’s in Vegas (baby) and is the biggest of its kind in the world. NRF is the National Retail Federation and it’s a bit like CES, except that it’s solely for retail. Both took place in January and, for a glimpse of what’s to come, it was worth the trip. So, what was new and what (in spite of the Covid-related diminished numbers at both events) did the punters reckon to what was on show? Well, if you’re in the business of selling toys in a store you might want to know which parts of your shop could be considered hotspots and which are not. Customer counting and monitoring is certainly one way of doing this, but is about as interesting as watching the proverbial paint dry. Unsurprisingly, there are now widgets that do the job for you. But what is surprising is that they needn’t be the stuff of big outfits. Microelectronics are relatively cheap, so knowing what’s happening is possible and worth the effort. Then there’s the matter of ‘phygital’ which for some means looking in-store and perhaps browsing online while you’re there. This can, of course, be done by phone. But in these pandemic-darkened days, what truly fastidious person would want to touch an in-store screen? You don’t have to. There are now screens that feature a camera that maps your hand to create an on-screen avatar, which mirrors what your hand does, without any requirement to actually touch anything. But then why bother going into a shop if all of this is the norm? Wouldn’t it be better to dive into the ‘metaverse’ and just become a virtual customer in a virtual store? Well, maybe, and there was a good deal of talk about this at both CES and NRF. But nothing was really landing, and there was rather more hope (on the part of the vendors) than any kind of digital reality, as it were. This is probably good news for those whose business it is to operate out of bricks-and-mortar shops. And if there was a single thing that emerged from both shows, it was that physical retail is worth designing new things for, and it’s to be expected that this state of affairs will continue for the foreseeable future. The prediction for 2022, therefore, is one of steady
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state. The worst is behind us and while we kept on getting hit, we’ve shown an uncanny ability to pick ourselves up and get on with it. All of which sounds pretty rosy when set against what we’ve been through, but there remains an elephant in the room: the economy. At the time of writing, the news was that inflation in the UK had hit a 30-year high and is currently running at over 5%. That sounds bad, and when coupled with the Bank of England raising interest rates, there will be less money all round over the next 12 months for the average man (or woman) in the street. Practically, this means that discretionary spending - and toys and playthings fall firmly into this category - may be hit. Except that as every consumer behaviour analyst will point out, spending on products that will bring a smile to the faces of our children is one of the last things that goes under the hammer. So, will 2022 be any good if you want to sell toys? The answer would appear to be a qualified yes. The tech merchants are certainly banking on it being so, and maybe they’re in the know (although hope does always spring eternal in this neck of the woods). As far as shops are concerned, if only a small fraction of what was on show at NRF and CES makes its way into the retail mainstream, then it’s reasonable to think things will be better for shoppers. And that in turn will feed through into sales, at the least, not going backwards. Oh yes, and if gaming is your thing, or you’re in the business of selling add-ons to what you currently show, look out for haptic suits. These are pieces of clothing that you wear while playing a video game, which react to what’s happening on the screen, allowing you to ‘feel’ the action. This was everywhere at CES and was one of the most sought-after items. It’s a fair bet that Christmas lists will include haptic vests, gloves, whole body suits or similar. Be of good cheer then! It’s a new year and although I’m stating the obvious, things really are very different from this time in 2021. Inflation will certainly be troublesome, but if you want a summary of 2022, it will be a year of recovery. Learning to live with Covid has meant accepting that while things are different (and will continue to be so), life does not have to grind to a halt. It hasn’t, and the retail shakeout that has marred the last two years looks to be at an end. Things are already better.
If there was a single thing that emerged from both shows, it was that physical retail is worth designing new things for, and it’s to be expected that this state of affairs will continue for the foreseeable future
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John Ryan is Stores Editor of business magazine Retail Week. He has worked for the title for more than a decade covering store design, visual merchandising and what makes things sell in-store. In a previous life, he was a buyer.
