How Retail Businesses Are Pivoting in a Changing World

The retail environment is evolving due to various factors, including customer preferences, lifestyle changes, COVID-19, and technological advancements. Retailers, as providers of solutions to their customers' needs, must adapt as customer expectations shift. Here’s how six key industries are embracing change:

1. Restaurants
   Technology has provided restaurants with innovative ways to ensure safety and appeal during COVID-19. Hand-held menus are being replaced with QR codes, and online ordering is becoming increasingly popular. Restaurant layouts are being redesigned to facilitate social distancing, and contactless ordering systems are being implemented. These adaptations can reassure customers, making them more likely to dine out and ensuring long-term sustainability.
2. Fuel
   With more people working from home, fuel consumption patterns are changing. In response, the fuel industry is innovating to attract new revenue streams by offering pharmacy goods, Wi-Fi access, and electric vehicle charging stations. Companies like Refuel are leading the way with app-based services that deliver fuel directly to customers' homes or offices, creating a win-win scenario for both retailers and customers.
3. Hair and Beauty
   As more people stay home and use fewer makeup products, the industry has shifted its focus to self-care and wellness, leading to increased sales in these areas. Technology is enhancing this shift by providing immersive experiences through virtual reality try-ons, online masterclasses, and tutorials. These innovations help customers visualize how they can engage with products, increasing the likelihood of conversion to actual sales.
4. Automotive
   The automotive industry is pivoting, as seen by the rise of eco-friendly car wash franchises that use sustainable cleaning products and low-waste systems. Mobile and pop-up car washes are becoming more popular, offering convenience to clients while reducing overhead costs. Additionally, as customers keep their cars longer, car repair franchises are thriving by assisting with regular maintenance to keep vehicles running smoothly.
5. Clothing Retail
   During the COVID-19 lockdown, the online retail sector grew by an impressive 40%, as customers discovered the convenience and safety of e-commerce. Investment in technology and supply chains has surged, allowing clothing retailers to attract customers online while maintaining their physical stores. Moreover, consumers are becoming more conscious of their purchasing habits and environmental impact, leading to a rise in sustainable fashion. Local brands promoting pre-loved designer and streetwear items or “slow fashion” are becoming increasingly popular, as customers seek quality over quantity.
6. Building and Hardware
   The pandemic has underscored the need for safe and adequate housing, prompting government plans to invest R139 billion in housing projects, many financed by private-sector partners. This investment will benefit the building and hardware industry. Additionally, as consumers spend more time at home, there is a growing interest in DIY projects and home improvement. Building and hardware businesses are adjusting their product lines to cater to this market, hoping to capitalize on the DIY trend.

The Bottom Line
While the world is changing through natural shifts in thinking and in response to the pandemic, entrepreneurs are remarkably adaptable. To pivot successfully, businesses should understand their sector, assess ongoing changes, and align these insights with their product offerings. This approach can uncover innovative strategies for thriving during uncertain times. If you need quick funding to kickstart your next project, reach out to us to explore how we can support your ambitious growth plans.