Over the last few years, we have seen a huge shift in retail trends. Here are 4 important trends to be aware of:

• Price Conscious Consumers

Record high inflation is changing consumer spending habits and retailers are having to adjust their strategies to remain profitable and meet customer expectations. According to a survey conducted by Ipsos at the beginning of 2022, 42% of people said they were shifting focus to look for products on promotion as a reaction to inflation.

Brands have multiple options on how to adjust their business to accommodate rising costs. We are seeing everything from Best Buy focusing on opening more outlet stores to brands reducing the size of their products while maintaining the same customer-facing price. With inflation set to maintain high through, at least, the end of this year, this will continue to be a key topic influencing strategy.

(If you want more in-depth info on consumer behavior driven by inflation, we wrote a blog about it!)

• Embracing Innovation

Retailers have shifted their focus to innovation, investing in technologies and looking externally in order to become more agile in the face of uncertainty.

We are seeing brands utilize artificial intelligence for everything from inventory accuracy to promotion planning and optimization.

• Emphasis on E-commerce

Since the dawn of the internet, brands with a strong online presence have had an advantage, but after essentially becoming the only eligible channel last year, it’s an absolute necessity. In fact, By 2040, it’s estimated that 95% of purchases will be facilitated by e-commerce.

• Ultrafast delivery expectations

Leading companies are making large investments in their infrastructure or forming strategic partnerships to reduce fulfillment time on customer orders.