The Rise or Fall of Retail: The Impact of COVID-19 on Fashion

This year has been unlike anything most of us have experienced in our lifetimes. COVID-19 has wreaked havoc and devastation across the world, costing lives, livelihoods and putting life on hold. As time moves on, a number of questions have been raised as to how we are going to navigate through the current situation and plan for the future. There are a whole host of economies and industries that have been decimated by COVID-19, some irreparably so, others in need of alteration to repair or survive. Businesses and industries are, as is so frequently said, going to have to adapt to a ”new normal” in order to survive, and the fashion industry is no different.

Already we have seen some of the implications that COVID has brought to the fashion industry at all levels, from cancelled events and decline in sales to store closures and job losses. Some have managed to plough on, turning the attention of their production lines to PPE and hand sanitizer or coming up with creative ways to keep fashion alive and relevant in lockdown. Others have become another name on the list of businesses who have succumbed to COVID.

It is the latter, the loss of high street stores that were once so popular, that has further highlighted one of the most vulnerable and endangered part of the fashion world: Retail.

Retail is a side of the fashion world that, even before the pandemic, had been suffering for some time. Now, with lockdowns being imposed worldwide and shops being forced to close their doors, the situation has only been exacerbated. The rise of online shopping over the last decade has seen a dramatic drop in footfall for retail stores across the entire spectrum of the fashion pyramid. Be it high-street, designer or anything in between, the shopping habits of consumers have changed and retailers remain locked in an ongoing battle to bring customers back to their stores.

In an ever increasing digital age online shopping and e-commerce has been both a blessing and a curse for brands. Social media in particular has had this effect: targeted advertisements, Instagram stores and celebrity discount codes can make a brand, but they also perpetuate a cycle of online shopping, making it increasingly easier and quicker to make a purchase. When a few taps of a phone screen can ensure an item arriving at your door within 3-5 working days, many have traded the hustle and bustle of the retail world for the comfort of their own home.

What many retailers are beginning to realise is that, in order for retail to not only work but thrive, they are going to have to change the approach that worked before the digital age and opt for a more experience driven one that offers consumers more than just the clothes that are available online. As time has progressed materialism has often been replaced by experience driven consumerism and as such, retail needs to embrace the notion not of merely shopping, but an entire shopping experience.

Of course, there is no clear or exact path that retailers can take to increase store footfall. Over the past few years numerous different routes have been taking with varying success. One avenue of approach adopted by many retailers is through the medium of food, or more precisely, restaurants and cafes linked to flagship stores and other outlets where it would feasibly succeed. Whilst this line of thought isn’t a new one, BIBA’s Kensington flagship store and its 1970s Rainbow Restaurant being the most infamous of examples, it is one whose revival has had success. The likes of The Blue Box, Tiffany and Co. Cafe in Harrods or the Gucci Cafe, with Chanel, Burberry and Ralph Lauren also following suit. Not only does it add an extra sense of luxury, but these additions entice the consumer, inviting them to spend hours with their favourite brand.

The latest trend and experiment amongst brands, is to combine the two, offering an additional digital in-store experience that helps gather traction online and entice consumers to enjoy the experience themselves first hand. Take Burberry, whose takeover of the Selfridge’s Corner Shop saw an immersive winter-themed installation, with scannable QR codes conjuring an augmented reality experience, which brought the store’s installation to life. They have continued this trend in their Shenzhen store, this time the QR codes providing additional content and stories behind each of their products. Whilst augmented reality and digital in-store experiences may, on the surface, appear to be a luxury that only designer stores can afford to implement, retailer Zara is proving that augmented reality is a viable option for high-street brands. Zara’s innovative scannable shop windows, which provide images of models wearing this seasons trends straight to your phone, show that incorporating the digital into retail store life is not just afforded to the more luxurious brands. Stores at all levels are capable of providing that experience that might just make the difference in attracting consumers back into stores and away from online shopping.

Whilst times are hard and money is tight for many businesses, now has never been a better time for retail stores to embrace innovation and commit to the experience driven trend that could be retail’s salvation. COVID-19 has wreaked havoc on business and livelihoods, but as time goes on and we learn more about this virus, hopefully we can find a way to return to some form of normality and retail could be a huge part of that. Everyone’s lives have been put on hold and the world teeters in and out of lockdown, but we have come to learn the pleasure in simple things that pre-COVID we took for granted from hugging our loved ones, to travelling abroad, eating at nice restaurants and, yes, going shopping. Retailers may find, that as we learn to transition into this “new world” that we’re all a little more keen to support businesses where we can, to save jobs and have a little fun whilst we’re doing it.

For retail, it‘s time could very well be coming.