The New Normal in Store-based Shopping for Fashion and Luxury: What Does the Future Hold?

November 2020

Channel shifts accelerated by the Coronavirus pandemic has led to significant changes taking place across the fashion retail landscape with retailers being forced to adapt to these new consumer demands and behavioural shifts. This report examines the impact on store-based shopping during the height of lockdowns to help companies adapt their strategies in a post-pandemic world where digital is now playing a more prominent role in what is traditionally an industry so reliant on physical stores.

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This report comes in PPT.

Key findings

The spread of COVID-19 accelerates again

As the northern hemisphere approaches winter, the number of COVID-19 cases has been rising again since mid-September - particularly in Europe and North America, with several countries now heading into further lockdowns.

There is no back to “normal”

As consumers continue to isolate during the COVID-19 pandemic, this period has changed our shopping behaviours and accelerated e-commerce adoption to such an extent that the gap between physical and digital in fashion and luxury is becoming increasingly narrower. The chance of a return to “normal” is looking less likely and these channel shifts and new behaviours look set to remain.

Slowdown in discretionary spending and shift to new values and spending criteria

Lower disposable incomes and economic uncertainty will accelerate the value shift away from the accumulation of material things which were previously seen as middle class markers of success. The wealthy and affluent are also not exempt from the adverse impact of COVID-19 with the world’s top three wealth segments set to decline

Diversification at the core of recovery efforts

In order to adapt strategies and remain competitive in a post-pandemic world, luxury and fashion retailers will need to explore the shifts in shopping behaviours that took place during this period of abrupt change. Diversification is at the core of these efforts and retailers will need to quickly enhance capabilities and maximise efficiencies across their store-based operations. Technology and innovation will be fundamental to win.

Personalised service and experiential retail a key differentiator to help the physical store

E-commerce will undoubtedly grow as consumers continue to enjoy the convenience of online shopping, and the shift to learning, working, eating, shopping, playing and socialising moves further to the home. Physical retailers will need to go above and beyond to create new bonds and build loyalty with customers who will be looking to be entertained, rewarded and valued.

About this report
Key events so far
Key drivers shaping new “normal” in store-based shopping habits
Luxury and fashion industries among the hardest hit
Assessing consumer appetite in fashion and luxury post-COVID-19
Brick-and-mortar outlets still vital in luxury and fashion
Digital sales continue on major growth trajectory but remain small
Temporary store closures hit store-based fashion hardest
Global travel shutdown leads to dearth of inbound shopping
Digital divide and low e-commerce penetration increase exposure
Further disruption in store-based sales from digital transformation
Retailers seek to reduce in-store shoppers’ anxieties
Is this the end of “extreme consumerism” and fast fashion retail?
Revival of the Pop-Up
COVID-19 rewrites experiential retail in store-based shopping
Virtual try-on features introduced into the store-based channel
Burberry ahead of the curve in store-based digital innovation
Consumers see greatest value from checkout-free options
Touch-free technology gives customers more peace of mind
From flagships to suburbia
Rise in store vacancies leads to a wave of new pop-ups
Fashion retailers are engaging the queue with a “ phygital ” approach
The physical store as a hybrid event space
Is “showrooming” the future for store-based fashion retailers?
Key findings
Market overlap
Overlap matrices
About Euromonitor International’s Industry Forecast Model
Soft drivers and the Industry Forecast Model
Growth decomposition explained
Significance and applications for growth decomposition
Key applications for Industry Forecast Models
About Via Pricing from Euromonitor International

Luxury Goods

This is an aggregation of: Personal Luxury, Fine Wines/Champagne and Spirits, Luxury Cars and Experiential Luxury.

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