#1.

Selling online is non-negotiable — no matter what you sell

Online shopping is essential for consumers and table stakes for retailers.
Today, shoppers make 37% of their monthly retail purchases online, and
many retailers are meeting those needs in stride. Independent retailers can
connect with customers locally, and they can also extend their reach by selling
online in addition to maintaining their local presence.
As many retailers are changing their business models to find new revenue
streams, going online can increase the odds of success. In fact, among
retailers selling online, 51% of their revenue now comes from online sales.
Moving to the first new channel also underscores the importance of using
digital tools to help retailers continue to innovate. “That is the tipping point
where you really need to run the operations of your business digitally,” says
David Rusenko, Head of eCommerce at Square.

#2. Omnichannel tools are creating more meaningful shopping experiences — but
education is key
Despite the mass move to eCommerce and, therefore, the importance of having
an omnichannel strategy, 32% of retailers say not knowing their options keeps
them from selling items through newer online or social channels. And 29% say
delivering consistent shopping experiences across online and physical
channels is a challenge.
Even though retailers are digitizing their operations, it’s not an all-or-nothing
situation, which raises the importance of education around the Omni channel
selling solutions available. “Consumers clearly value and use flexible
omnichannel experiences like buying online and picking up or returning in
store,” says Roshan Jhunja, GM for Square for Retail. Shopping habits are
evolving, and an integrated solution that ties multiple channels together,
streamlining front- and back-of-house operations, can help retailers find
success.
“An omni-literate system will help you fulfill your omnichannel sales and keep
your products moving while minimizing excess inventory sitting around,” says
Jhunja.

#3. Automated technology is helping retailers get a handle on the labor shortage
Nearly one in three retailers are worried about being able to attract and retain
staff in 2022. To combat the increased complexity caused by the labor
shortage, 72% of retailers are using, or planning to use, automation to
decrease their team’s time on hands-on work.
Streamlining efficiencies for tasks like tracking orders, managing customer
loyalty programs, and communicating with customers are the top three areas
where retailers say automated technology will help fill staffing gaps. Retailers
should consider investing in automated software or upgrading what they
currently use to meet the changing needs of the hiring landscape.

#4. With supply chain issues continuing, same-day delivery is giving retailers a clear
advantage
Nearly two out of three shoppers prefer delivery over pickup when shopping
online. However, only 38% of retailers are offering same-day delivery. While
shipping delays and supply chain issues are more common now — and 48% of
retailers expect to continue facing supply chain delays — local businesses
have an opportunity to get products out faster than big eCommerce players
by offering same-day delivery.
Local retailers are closer to customers and they can set up the necessary
systems to get products to customers faster. “What often happens is that
when you start to offer something like same-day delivery, it encourages larger
basket sizes,” says Dave Rusenko, GM for Square eCommerce.
There are also multiple fulfillment options beyond delivery that will last well
beyond the pandemic. Nearly one in five shoppers say a lack of buy online,
pick up in store (BOPIS) options would make them avoid certain retailers,
proving how crucial the added flexibility has become.

#5. Social commerce is one of the biggest digital trends in the retail industry — and it’s
booming
From selling on Instagram to launching an online store, retailers are experimenting
with multiple ways of meeting the evolving needs of customers. This new
omnichannel landscape is thrilling, with 75% of retailers surveyed now selling
on social media.
Whether it’s through a fully shoppable store or flash sales, social selling is
made possible by eCommerce tools, helping retailers reach more customers at
a time when people may be even more glued to their devices. And it’s
working, with 43% of retailers who sell on social platforms saying half or more
of their revenue comes from social media sales. Retailers are earning the
most revenue from Facebook, Instagram, Twitter, and TikTok, respectively.
If you’re interested in trying out social selling, see how Square can help you
quickly get started, using the products you already rely on.
#6. Interactive retail experiences are bridging the gap between the online and offline parts
of a store
As customers get more comfortable buying products through social media, it
also opens up a whole new way to interact through those platforms. Enter
virtual experiences. Over one in three retailers are going to invest in livestream
shopping in 2022, while 30% are also going to implement virtual reality (VR)
shopping.
These investments can lead to richer experiences for customers and more
informed purchase decisions. And they’re more accessible than you might
think.
Livestreaming is when products are shared with customers over live video. It
can be as simple as using an iPad to show customers what’s in-store through
a virtual shopping appointment, or by using Instagram Stories to showcase the
new stock that just arrived.
Virtual reality is another strategy retailers are using to help customers
experience products before adding them to their carts. Online shoppers want
a deeper understanding of products before adding to their cart, and VR tech
can be an effective way to improve the overall try-before-you-buy experience.

#7. The borders between retail and other industries continue to blur
The pandemic not only sparked business pivots, but fast-tracked industry
mashups that were already taking place. Mixed-use concepts like restaurants
selling branded merchandise and retailers offering digital services are
increasingly normal.
Over one out of four shoppers say they’ve purchased retail items from a salon
or spa during the pandemic, while 44% have purchased services like meal
and cocktail kits and online cooking classes from restaurants.
“We’re seeing that the defined, straight vertical lines of your retail business
versus your restaurant versus your services business are all blurring,” says
Rusenko. “You’re seeing restaurants selling groceries (which are a typical
retail offering) or retail businesses selling services like online cooking classes
or Zoom calls and so on.”

#8. Community investments from retailers may be here to stay

Communities breathe life into local businesses, and both customers and
owners recognize that harmony.
Retailers are deepening their connections to the areas they call home through
a variety of ways. Sixty-eight percent of retailers are planning on participating
in more community initiatives in 2022, with around one in three saying they’re
going to partner with local businesses, provide supplies for local events, and
donate supplies to community organizations.

Retailers are tapping into the qualities that make them unique, reworking
them, and using them to their advantage as consumer needs have
flipped. The future of retail in 2022 lies in the power of local businesses.
To incorporate these retail industry trends into your business, consider
digitizing your operations and then trying out new ways of selling. When you
find what fits, you can give customers exactly what they need while giving you
the room to try new things. And when you get to that space where you can
pull the levers that work for your store, your future is wide open.