Trends for 2023 and Key Take Outs for POS

After two years disrupted by the pandemic, there was hope for a more settled year for retail in 2022. However, the unstable geopolitical environment and high rises in the cost of living, meant new challenges faced retailers and brands. As well as the cost of living crisis affecting consumer demand, businesses also saw running overheads rise sharply. According to the British Independent Retailers Association energy costs have increased on average by 400% and wages by 10%. In 2023 retailers and brands need to overcome these challenges whilst focusing on diverse shopper requirements to build effective campaigns.

Our 2023 trends document looks at the key trends affecting retail and explores:

·        Which trends are emerging and will continue to be built on?

·        What impact do wider world trends have on POS?

Trends explored include:

PRICE PRESSURE

Price pressure for consumers was difficult in 2022 and is set to remain at least for the first half of 2023. Retailers and brands need to focus on delivering value for money (which may not always mean the cheapest item). Footfall in-store will be driven through collaborations, exclusives and experiences to help shoppers feel part of something bigger.

LOYALTY

Retailers will have to work harder in 2023 to attract and retain customers as the rising cost of living puts loyalty to the test - Gartner found 56% of consumers are willing to forgo brands they’re loyal to for a good deal. Loyalty cards have been a staple for years but the trend will be for more personalised pricing and incentives matched to spending habits.

SUSTAINABILITY

Sustainability will remain a key focus throughout 2023. The cost of living crisis is likely to focus consumers on cutting back on unnecessary or wasteful purchases with people increasingly aware of the benefits for their wallet – and the environment. According to Attest, 40.7% of consumers say they are buying fewer things and consuming less – that’s an 8.5 point increase on last year.

DOING GOOD

According to Aflac CSR Survey, 77% of shoppers are motivated to buy from businesses that are committed to make the world a better place and 55% believe companies should take a stand on key environmental, political and social issues.

PERSONALISATION

Research from Deloitte indicated consumers are willing to pay a 20% premium for personalised products and in 2023, we expect to see more retailers and brands looking to enhance their offering in unique and personalised products that reflect consumers’ personalities, sense of style, and other needs.

SEAMLESS EXPERIENCE

It remains important to have a seamless presence across all channels. As the world experienced more normality in 2022 post pandemic, there was a shift away from e-commerce in many markets. In the UK, there were 10 consecutive months of decline in online sales as a percentage of total retail sales.* Shoppers are looking for retail to deliver an experience – and reflect their interaction with the brand across other channels.

WORKING SMARTER

Alongside delivering exciting and seamless experiences for shoppers, retailers and brands will be looking across their whole supply chain to drive efficiencies and reduce costs in the year ahead.

If you are a brand or retailer and interested in receiving the full report, please get in touch – info@teamfero.com