The global crisis only amplified retail challenges. Since March 2020, at least 347 US companies cited the pandemic as a factor in their decisions to file for bankruptcy. Among them was Guitar Center, whose executives said its e-commerce sales couldn’t replace the experience of musicians trying out instruments in person. Some businesses are finding new ways to cope— or perhaps come out of the crisis in better shape than when it began. In 2021, it appears many retailers are ready to shift the way they do business.
MIT Technology Review Insights, in association with Oracle, surveyed 297 executives, primarily financial officers, C-suite, and information technology leaders, about their organizations’ plans for big business moves. These include new business models, mergers and acquisitions, and major technology changes, such as automating financial and risk management processes.
According to the research, 83% of executives across industries feel upbeat about their company’s ultimate objective for 2021, expecting to thrive or transform— that is, sell more products and services, or take up new business practices or sales methodologies. Overall, 80% of organizations made a big move in 2020 or are planning at least one in 2021.
The road ahead for retail
The shopping process will be different in 2021, says Mike Robinson, head of retail operations at The Eighth Notch, a tech platform that connects shippers and retailers, and former digital business leader at Macy’s. Among the hard-to-answer questions retailers are asking: “How can stores reassure people that it’s safe to return to congregating in places again? How can consumers trust that the store is doing the right thing from a cleanliness perspective?” Nobody has definitive answers, Robinson points out, but at least they’re asking.
