After almost two years of upheaval sparked by the coronavirus crisis, what comes next for retail? From climate change to customer service, purpose to personalisation, bosses of some of Britain’s biggest retailers predict the trends and themes that will dominate 2022. 

Jason tarry

Jason Tarry, chief executive UK and Ireland, Tesco 

“Convenience and great value will continue to be really important to our customers, and so they’ll remain a strong focus and commitment for Tesco too – value not only in price for our customers, but also in the value we can add by supporting local communities; ensuring healthy food is accessible to everyone; and by making responsible, sustainable decisions as a business to help protect our planet.”

Thierry Garnier

Thierry Garnier, chief executive, Kingfisher

“We expect continued growth of on-demand ecommerce across industries. Our own Screwfix Sprint service is an example, offering delivery of orders within an hour across 30 UK towns and cities, with good early results. The Boots link-up with Deliveroo is another similar initiative. We will also see more ecommerce product marketplaces.”

JO WHITFIELD-42

Jo Whitfield, chief executive, Co-op Food

“Climate change will be the defining theme for the next generation, not just next year. COP26 has reinforced the need for us all to take urgent action to limit global warming or face further catastrophic consequences to communities around the world and to our food security. Our customers are more aware of the impact of food operations on the planet and businesses need to innovate to promote more sustainable choices and work collaboratively to reduce carbon emissions.”

Paul Marchant - credit Anthony Woods 3

Paul Marchant, chief executive, Primark

“Far more than a trend, sustainability is increasingly important to consumers and will continue to be at the centre of thinking for all retailers next year. Earlier this year, we launched our new Primark Cares sustainability commitments to reduce fashion waste, halve carbon emissions across our value chain and improve the lives of the people who make our products. We know it’s what consumers expect from us, and so retailers will continue to adapt because it’s the right thing to do. 

“More broadly, customers continue to expect innovation whether that’s in new products or collaborations, we’ll continue to challenge ourselves to innovate and surprise our customers.”

Alex Baldock - Hi Res-1105

Alex Baldock, chief executive, Currys

“In our space, I think the big picture is technology playing a much bigger role in millions of lives. We’ve seen that during the pandemic and we expect to see it more next year - people are leaning on technology to stay connected to friends and family, to work from home, to homeschool, to keep healthy and fit. We expect these trends to stick - people will continue working from home, gaming will get bigger, and people will replace their technology more often.

“Secondly, omnichannel is proving itself as the winning model. It had the mother of all stress tests over the last couple of years and it came through it. The sweet spot for retailers is giving customers the benefit of both channels on any given day. 

“Finally, there’s a lot of talk about ESG. I think what you’re going to see is more businesses finding ways to build sustainability into their business models. We strongly believe that profit and purpose need to go hand in hand, otherwise one of them simply won’t last. We need to give customers’ products longer life as well as selling them the shiny new ones.”

8. Graham Bell

Graham Bell, chief executive, B&Q

“There are three main trends set to continue throughout 2022; first, with more people working from home, fully or partially, customers continue to adapt their homes; we’re seeing younger customers’ confidence to try more home improvement projects grow; and customers will be wanting more digital, physical and fulfilment service options to suit their varying needs.”

Murray Lambell

Murray Lambell, vice president and general manager, eBay

“We’ve seen a few big trends emerging in 2021 which, despite the uncertainty brought about by the pandemic, will continue to grow in 2022. Chief among these is the rise of what we call conscious consumerism – or shopping with purpose – driven by a collective want to make our lives more sustainable. Major socio-political moments, like COP26, accelerated the growth of the trend.

“We’ve also seen a significant rise in the supply and demand of pre-loved, refurbished and second-hand products, with many recognising the win-win of buying the brands they love at a lower cost to them and the planet. Many brands have responded by growing their offer of end-of-line and dead-stock ranges, so it’s clear this trend is here to stay.

“For businesses, that means assessing their supply chain and looking for opportunities to be part of this movement. Whether it’s finding ways to repurpose old inventory, using more sustainable materials, or investing in new technology, there is no doubt that businesses need to double-down on sustainability to stay at the forefront of consumer expectations. At eBay, we have been helping brands large and small tap into this new wave of conscious consumerism, providing an outlet to extend the lifecycle of their products, while also providing clear avenues for consumers to shop in ways that are more aligned with their values.”  

Rachel Osborne

Rachel Osborne, chief executive, Ted Baker

“In addition to engaging with customers in exciting and innovative ways, how we unite and engage with our people will also be critical to success. Teams on the front line, head office and in our warehouses will need to work closer together to deliver a seamless customer experience. Creating an inspiring purpose, delivered with shared values, will be key to that.”

Brian Duffy

Source: Beth Walsh

Brian Duffy, chief executive, Watches of Switzerland

“As we leave yet another ‘unprecedented’ year, my view is that changes to retail have been hugely accelerated by Covid.

“For 2022, ‘personalised client service’ will be the key. At the Watches of Switzerland Group this means ‘by appointment’ - we are doing almost half of our business today by appointment and luxury concierge. We have teams of fully trained sales colleagues providing online support and advice, all supported by CRM, so we know our clients’ interests and preferences.

“The shopping experience now is decided by the client, not the retailer.”

David Robinson

David Robinson, chief operating officer, Pets at Home

“Businesses will need to be increasingly agile to offer the convenience consumers demand, as well as continuing to offer the great value they’ve come to expect. This will require a combination of digital solutions, such as click-and-collect and same-day delivery as well as great service in stores. Consumers will also want to spend their hard-earned money with businesses that share their values and act responsibly.”

Kenny Wilson

Kenny Wilson, chief executive, Dr Martens

“I think we will continue to see strong growth in ecommerce. During the pandemic we have seen a rapid acceleration, with many people shopping online for the first time, and we expect it to be a habit that many stick with.”

Paul Hayes, CEO, Seasalt

Paul Hayes, chief executive, Seasalt

“Customer experience will be the battleground both on and offline. It’s how brands will be able to truly stand out and how they will be held to account. 

“That hints at an even bigger theme, which is about the integrity of the brand full stop. It includes sustainability claims, but also the way you communicate with customers, suppliers and third-party partners. 

“I believe brands that build trust and are transparent in their communications will be the winners in a difficult environment. Those that fail to do that will struggle.”

Mehta, Shimona

Shimona Mehta, Managing Director EMEA, Shopify

“In 2022, we’re likely to see more brands go DTC than ever before. Instead of renting relationships, brands need to truly own their customer relationships – this means owning their own data to understand who their customers are, to segment them, and build relationships with them to maintain loyalty. Having a direct line to their customer has never been more essential.

“Additionally, brands can no longer rely on one-way advertising due to increasing costs. The future of commerce is a two-way street – meaningful engagement between brands and consumers will be key in 2022. Live selling is one example of the innovation we expect to see. From August to October 2021, Shopify saw installs for live selling apps increase by 40% compared to the previous three months – and we expect to continue to see this evolve in 2022.”

John Mewett

John Mewett, chief executive, Screwfix

“Tradespeople across the UK and Ireland are busier than ever, and convenience will remain a key part of their purchasing decision. We expect to see continued growth in digital and the use of mobile to allow customers to purchase the products they need at the touch of a button, for click and collect and super-fast delivery.”

Gavin Peck

Gavin Peck, chief executive, The Works

“Consumers today don’t just want to buy a product, they want to buy into a brand with a clear purpose. This means businesses will increasingly seek to demonstrate how they are more than just a retailer, whether that’s improving people’s health and happiness, supporting the environment or creating a community. Retailers need to not only be clear about this purpose but actively deliver on it too, because customers can easily change their buying habits.

“For The Works, this means inspiring our customers by showing them what they can ‘do’ – make, create, read, learn – and empowering them to do that. Retailers that get it right will drive increased brand loyalty and deeper connections with their customers.”

Rob Parker

Rob Parker, chief executive, Topps Tiles

“I think interest in the environment will be the defining trend or theme for 2022. Customers are increasingly going to expect retail businesses to be very clear about their environmental credentials. 

“The short term impact will be one of transparency in communications (including understanding the impact the business is having) and over time this will be about making businesses more sustainable and reducing the scale of that impact – including within the supply chain.”

Sarah Clark

Sarah Clark, chief executive, Frugi

“The COP26 climate change summit has helped catapult sustainability up retail’s ‘to-do’ list. This is because it has captured the imagination of more consumers, especially the parents of young children, and businesses will need to make it a top priority.”