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Retail's New Abnormal: Why We'll Never Return to Pre-Pandemic "Normal"
The Destabilization Economy and What It Means for Brands
Five years after we all locked down, emptied store shelves of toilet paper, and discovered the joy of curbside pickup, here's the billion-dollar question:
Is retail back to normal?
The short answer: No. And it probably never will be.
While we've left behind the days of masked shopping and six-foot floor markers, today's retail landscape is anything but stable. The pandemic didn't just interrupt retail – it fundamentally rewired it.
Consumer Power Has Returned (With a Vengeance)
Pre-pandemic, consumers were already calling the shots. During COVID, that power temporarily shifted as shoppers accepted limited options and higher prices just to get what they needed.
But now? Consumer power is back and supercharged.
"The consumer is really flexing their might and using that power right now — and they truly are fed up with how much stuff costs and what their perceived value is that they're getting out of it." — Joe Schmitt, BRG
Today's shopper is more demanding, more price-sensitive, and less loyal than ever before. The pandemic taught consumers they could live without many things they once considered essential. Now brands must constantly re-earn their place in customers' lives.
The In-Store Experience Expectations Gap
The strangest post-pandemic paradox? Shoppers returned to stores, but many retailers weren't ready for them.
"I was definitely worried the last couple of years... I thought retailers could really screw this up if they don't reinvest in stores," notes Nikki Baird of Aptos.
The pandemic accelerated digital by a decade, but physical retail didn't evolve at the same pace. Now shoppers expect digital conveniences in-store – and many retailers are still playing catch-up.
The Destabilization Economy
Perhaps the biggest barrier to "normal" isn't pandemic aftershocks, but the constant barrage of economic and political uncertainty we've experienced since.
First it was supply chain chaos, then inflation, then labor shortages. Just as inflation finally eases, new concerns about tariffs and policy shifts have consumer confidence plummeting – down 22% since December, reaching a three-year low.
Greg Portell of Kearney puts it perfectly: "We have entered a period where destabilization should be expected."
In other words: the new normal is no normal at all.
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The Retail Strategy Playbook
How can brands thrive in this perpetual state of uncertainty?
Build Flexibility Into Everything
From supply chains to labor to store formats – the ability to pivot quickly is now your most valuable asset.Focus on Value Perception, Not Just Price
As consumers scrutinize every purchase, clearly communicating your value proposition becomes essential.Create Stability Where You Can
In an unstable world, brands that provide consistency and reliability will stand out.Don't Wait for "Normal" to Return
The brands still waiting for things to stabilize are falling behind those embracing constant change.
The Bottom Line
Five years after COVID lockdowns, we're not witnessing retail's return to normal. We're witnessing its evolution into something entirely new – a landscape where change is the only constant and adaptability is the ultimate competitive advantage.
The brands that will win aren't those hoping for stability to return, but those building organizations designed to thrive amid perpetual disruption.
Until next time...