We hit April and for most retailers it is the start of their new year. With the cost of living crisis, we are definitely aware of the implications that this could have for retail across the board. For brands, this year is pivotal in guiding the industry to understand what consumers want and encouraging brand loyalty in a time of financial uncertainty. We have noticed several predictions that have been mentioned across the board for the coming year in retail. .
Articles are collating the trends that they believe will navigate the retail sector in the coming months. Retail Gazette has noted that shoppers will be trading down but trading in. It has been noted that around 38% of shoppers are already buying cheaper essential products from their usual retailers, whilst 13.8% are switching to cheaper chains, according to Global Data.
With this in mind, factors such as the cost of living and the climate crisis are at the forefront of a company's attitude towards transportation and the impact they can have in their customer’s purchasing habits and on their emissions. With this being heavily publicised consumers are paying more attention to what they’re purchasing more than previous years.
For retailers, sustainability is often thought of as a badge of honour. When the fact is, we should all be more mindful of what we purchase and the impact it has environmentally for the sake of future generations. As financial issues for most continue, it is thought that this will help support people’s considerations in their buying choices.
Accenture’s retail strategy lead for Europe Kelly Askew says retailers have an opportunity to make this lifestyle as easy as possible for shoppers by educating them on how to shop economically and offering bundles and discounts on sustainable products.
Companies that have incorporated the element of education into their practice are Primark , who recently introduced a successful new pilot scheme. That entails their stores holding free clothing repair workshops throughout the country to encourage customers to repair rather than to throw and repurchase . Safe to say, Primark are doing all they can to enable their customers to feel like they’re getting the most of what they purchase in a time of financial difficulty for all.
The majority of younger consumers have had the continued impact of the media and platforms such as Instagram, Facebook and TikTok. One important trend for this year is the importance of being unfiltered and natural, as a way of body positivity, inclusivity should be promoted at all times, not just in their brand messaging, “65% of people with a disability have abandoned a purchase due to poor accessibility” further supporting the idea that these changes could increase sales in areas that wouldn’t have otherwise.
For the wider retail industry it is often considered that this year is poignant in gaining brand loyalty and widening their customer base, in a highly competitive industry. With different aspects of the business being reviewed such as environmental and economical factors. Brands are continuing to see competitors evolving so with factoring in price exclusivity it definitely incorporates not only the economical but the sociological factors that are used when making business decisions.
Price exclusivity is often thought of as a luxury to customers, giving a feeling of importance when purchasing. Retailers will have to be working harder this year to retain their clientele due to the cost of living crisis. However, it has already been found that 56% of consumers are willing to forgo brands they’re loyal to for a good deal. Kantar has predicted that they will see more businesses stepping into the loyalty card exclusive prices. It is interesting, do you think you’re more likely to shop somewhere if it has a loyalty scheme that could eventually lead to a pricing discount on your most shopped items?
Tescos’ Clubcard has been the leader in loyalty schemes, with their sales reported to have increased by 9.8% year on year in its most recent half. Naturally this has seen other retailers throw their hat in the ring, with Sainsbury’s introducing “my Nectar Prices” and Boots to have a loyalty card exclusive pricing with their price advantage system.
This year is a questionable one for us all, with many factors having to be reconsidered in our normal buying habits. We have only touched on a small minority of the trends that’ll be shaping the retail industry. Are there some factors that you’re now thinking about when buying in stores or online? We thought it was great to see so many companies trying to embrace difficult periods of uncertainty.
Maybe now, you’ll sign up for your latest loyalty programme after all!
Retail PR