The first quarter of 2020 saw the pandemic’s arrival to the US, the introduction of various countermeasures, and vast changes in consumer behavior. But in encouraging news, 54% of retailers reported increased employee headcount since the start of the pandemic.

These increases were more pronounced in larger companies (1000+ employees), with 60% reporting increases, versus 49% of smaller companies reporting hiring gains. That aligns with findings from the Bureau of Labor and Statistics, which noted an uptick in jobs for retail trade at the end of 2020, and a slow but steady decrease in retail unemployment between April and December 2020.

A staggering 93% of respondents reported taking on additional responsibilities in 2020—even as their companies hired more people in 2020.

Nearly half of respondents reported taking on additional projects or programs (46%) and covering a broader range of functions (44%). And nearly one third reported increased supervisory responsibilities (31%).

In the radically altered retail landscape of 2020, retailers reported a vast increase in the reliance on digital tools. Nearly four in five reported a substantial (40%) or moderate (39%) increase in digital tools over the course of 2020.

And making more use of digital tools is paying off. Increase in tool use correlated with similar gains in productivity, with 84% of retailers reporting that digital tool use made them more productive while working remotely.

That’s especially true for those at the manager level and above. Among managers, VPs, and executives, 87% feel digital tools increased productivity while working remotely in 2020. That uptick could be tied to their job responsibilities, since those at senior levels have a broader view into how tooling impacts productivity at large (not just at the individual level).

The more likely companies are to invest in tools, the more likely they are to see those gains. Amongst companies that increased their use of digital tools, 91% of employees felt their productivity improved.

On the flip side, at companies that maintained or decreased tool use, 70% of employees felt a lift in productivity.

So what tools, exactly, are retailers looking to invest in? We asked software decision-makers which digital software tools they want to invest in over the year ahead. The biggest winners were tools aimed at enabling remote collaboration at scale, like:

• Cloud storage (63% want to increase investment)
• Video communications (54% want to increase investment)
• Workflow & app development (54% want to increase investment)

This trend is even more pronounced in companies with strong eCommerce businesses. Companies with a high share of eCommerce revenue (70% to 100% of total revenue) are more likely to already have access to:

• Cloud storage (86%)
• Video communications (79%)
• Document/visual collaboration (75%)
• Chat for office communications (75%)
• Workflow and app development (71%)
• Task and project management (65%)

Looking past the pandemic, 56% of respondents expect their companies to rely on a mix of remote and in-office work. While few respondents expected a return to an entirely on-site work experience (23%), even fewer foresaw a move to remote-only work (16%).

Post-pandemic, we may come to see the hybrid work model as a best-of-both-worlds scenario. After all, as we look past the pandemic, no two employees’ individual needs will be the same. Differences in health vulnerability, living situations, and at-home responsibilities may necessitate a broader spectrum of working environments and options. A hybrid approach—instead of an emphasis on all in-office or all remote work—could be the key to accommodating those needs. 

Retailers are confident in their trajectory for 2021. Overall, 63% expect hiring to increase and a similar number (64%) expect bigger budgets for their teams.

However, IT workers were even more confident than their colleagues in store operations and customer experience (CX). While 79% of IT workers expect their teams’ budgets to increase over the next year, fewer of our respondents in store operations and customer experience (CX) expected headcount and budgets to grow in 2021 (41% and 34% respectively).

Constantly evolving restrictions on brick and mortar business and the rapid realignment of consumer priorities  made for an uncertain environment in 2020. But overall, retailers are optimistic about the year ahead. 65% of respondents described themselves as moderately or very optimistic about the economic climate for retail industry in 2021.

And those that feel positive about the economic climate feel even better about their company’s chances of success. For example, 29% of retailers feel “very optimistic” about the economic climate—but 36% feel “very optimistic” about their company’s success.

This prevailing optimism is a surprising, but impressive sign coming out of a year of incomparable challenges. While we may not know exactly what the “new normal” will look like long-term, retailers’ confidence in the road ahead is a hopeful signal.