The retail industry has experienced considerable changes in the past few years, and 2023 is on track for continued transformation. Retail companies can expect to see several key trends impacting businesses this year, including the growth of e-commerce, the focus on personalized experiences, and a shift to adopting sustainable practices. Below we discuss the key trends that are affecting retail businesses.
An Increase in E-Commerce
Online shopping escalated dramatically during the Covid-19 pandemic, and it doesn’t appear to be slowing down anytime soon. Online shopping provides consumers with convenience, access to wider ranges of products, and competitive prices. If they haven’t already, retailers need to embrace the new e-commerce era and optimize their online shopping experiences to level with customer expectations. Even strictly brick-and-mortar stores should think about offering best-selling products in an online storefront.
Additionally, a continuing e-commerce trend can be seen in the integration of social media commerce and marketing strategies. Social commerce lets customers buy products directly through social media platforms, sometimes with the assistance of influencers or brand ambassadors, and it’s an ideal way for retailers to interact with clients and drive sales.
Personalized Experiences
Retailers will need to create a special in-person shopping experience in order to compete with online shopping, increase customer loyalty, and drive sales. This can include online pre-order and curbside pickup as well as personal shoppers who guide customers through the store to offer personalized product recommendations. For example, if a customer is keen on a particular fragrance, the salesperson can point them toward different products with the same fragrance, making sure the customer is aware of any sales, promotions, or customer loyalty rewards programs. A personalized shopping experience elevates the shopping trip for the customer in a way that is difficult for e-commerce stores to do.
Automated Technology
Automation in pricing and inventory management systems is on the rise, which helps retailers lessen staff labor. As the industry continues to experience labor shortages, more retailers will be investing in these technologies. And more companies that specialize in automation solutions are popping up. Implementation of pricing automation can balance profitability and revenue growth, while inventory management systems can pinpoint an accurate amount of inventory to have in stock.
Sustainability
Consumers are becoming increasingly conscious of the environmental impact of the products they purchase and bring into their homes. Retailers and brands can reflect this by offering products that use recyclable or biodegradable packaging materials. They can also take steps to reduce their carbon footprint by embracing more sustainable transportation operations and working with suppliers that have environmentally-friendly practices. Finally, retailers are seeking ways to use more sustainable packaging materials, such as biodegradable packaging and plant-based plastics, and reduce packaging overall.
