Consumers’ relationship with brick and mortar stores has changed in light of the COVID-19 pandemic, and that’s putting it mildly. They aren’t frequenting stores as much, opting instead for the more convenient – and safer – online option. If they do go to stores, it’s primarily for a functional reason like saving time or money, and they want to get in and out quickly. On the other side of the pandemic, consumers will cautiously return to stores and will continue to look for cleanliness cues to make them feel safe. Forced adaptation will mean the brick and mortar retail landscape will emerge to be leaner, include next-gen store concepts, small-footprint locations and even dark stores. Technology will shape the future of the store, and help to streamline and improve the supply chain, providing better inventory visibility. Consumer-facing tech such as click and collect options and cashierless/contactless tech and payment options will streamline in-store transactions while modernized store concepts and formats will make physical retail more inviting, fun and experiential again.

• The impact of COVID-19 on the retail industry, and specifically consumer behavior related to in-store shopping

• How brick and mortar retailers will adjust to the changing role of value

• Key drivers of in-store shopping now, and in the future

• Types of in-store shopping experiences that consumers favor

• Types of emerging technologies that consumers are interested in

This Report focuses on what drives consumers to shop in-store and what they are looking for from the shopping experience. It will include a look at how brick and mortar retailers are evolving the store experience in the midst of a changing retail landscape including digital innovations, customer service and new forms of convenience. It will also cover the interplay of the in-store and online shopping environment.

This Report includes research conducted in November 2020 amid the continuation of the COVID-19 pandemic. The impact of COVID-19 and ensuing implications for the retail industry in general are provided.

The first COVID-19 case was confirmed in the US in January 2020. It was declared a global health pandemic and national emergency in early March 2020. Across the US, various stay-at-home orders were put in place in Spring 2020, and nonessential businesses and school districts closed or shifted to remote operations. The remainder of 2020 saw rolling orders, as states and local governments relaxed and reinforced guidelines according to the spread of the virus in each region.

Vaccine distribution began in December 2020, and it is expected take until anywhere from July to December 2021 for 70-90% of the population to be vaccinated to reach herd immunity. Mintel anticipates business operations in the US will remain in a state of flux through 2021 as the vaccine is widely administered.

Mintel’s economic assumptions are based on CBO estimates released on February 1, 2021. The CBO’s previous forecast for US GDP to fall by 5.8% in 2020 was revised after a stronger second half of the year, and the updated estimate indicates negative 3.5% GDP for the year. The CBO forecasts GDP to grow by 4.6% in 2021 and projects unemployment to continue to fall to average 5.7% for the year.