Conclusion: Five strategic takeaways (COPY)

1. Stay agile

A huge number of businesses have reported drastic increases in agility. As Bestway wholesale, the owner of Costcutter, managing director Dawood Pervez says: “We have seen some amazingly increased agility that we’ve formed through what we call our rapid action team. Really getting the change embedded and pushed through quickly – and I think that is something that we are going to hold onto.” This agility helped firms galvanise in the face of adversity, and it will help retailers recover more quickly for those able to maintain it.

2. Embrace new ways of working

Dreams chief executive Mike Logue says: “I had never been a huge fan of working from home, previously, I just didn't feel we would be efficient. And I've learned we can be more efficient, I've learned a lot as a leader that we can be more effective working from home.” Bosses have had many assumptions challenged over the past 18 months, and those who retain this open-minded approach will be better leaders for it.

3. Communication is vital

Retailer leaders found it was impossible to over-communicate in 2020 and 2021, and many of the channels and methods they put in place should stick. One carpet retailer boss says: “It’s that daily communication, weekly communication, to everybody that we created during the pandemic that’s a huge benefit on alignment; planning and alignment of resource and motivation and engagement for the teams. We’ll absolutely continue with that communication, even when everyone is back to the office and back in-store.”

4. Focus on what matters most 

Our interviews show that several trends are developing more quickly than others, and are likely to stick following a chaotic 18 months. The need for agile, fast supply chains has become more crucial than ever, while the growth of ECG and sustainability continues to build momentum. Stratospheric digital growth means social media networks’ dominance of marketing spend is more entrenched than ever, while on the high street, the shift to local shopping seems here to stay.

“The transition to digital has been immense and has now reached far beyond the youthful generations to older consumers. We see the digital landscape as having permanently shifted. We will also see working from home continue to impact the locations on which we and other retailers open, and those stores will need to be increasingly experiential,” says Richard Hurren, senior vice president global direct to consumer, Levi’s.   

5. Think creatively

Testing times don’t have to be negative: they can also bring opportunities to do things in a new way, try new models or experiment with new ideas. New leaders can emerge and efficiencies can be found. As the leader at a grocery chain says: “Because it was unwritten what we needed to go through, people were far more willing to share and test ideas.” While no-one would want to go through a global pandemic again, many of the leaders we spoke to clearly feel excited for the future. The key to success will be to hold on to the sense of possibility these extreme circumstances gave people, and to remember what their team is equal to.