The past three years has seen a vast change in the way that consumers spend money and engage with retailers. The era of COVID-19 forced many consumers to turn to e-commerce and online shopping like never before, regardless of whether they were ready or not.
Likewise, just as the pandemic started to recede, the war in Ukraine started, disrupting supply chains and kickstarting a lengthy period of inflation, which isn't showing any signs of dissipating.
What’s In Store For 2023?
The report aims to help organisations 'stay ahead of disruption, predict consumer shopping motivations and fulfil unmet consumer needs', according to Euromonitor International.
Top 10 Retail Trends For 2023
1. Authentic Automation
As helpful and innovative as technology can be, the report warns that emotional connections are not to be underestimated. Technology should aim to improve the shopping experience for consumers, not make it more complicated. Automation will be a big part of this.
With inflation still dominating the headlines, budgeting will be a big consideration for many consumers in 2023 – a factor that could weigh on retailer profitability, unless they box clever.
3. Control The Scroll
Consumers will not spend as much time on their devices in 2023, as they did during the pandemic. Retailers need to be aware of this, and curate an efficient, appealing digital experience.
4. Eco Economic
Sustainability and responsible business practices are taken far more seriously by consumers than they were a decade ago. Retailers should take note, because consumers may look elsewhere if they disagree with a company's ethics.
5. Game On
The gaming sector is now a mass-market opportunity that transcends the generational divide – and this is only likely to get larger. How can retailers capture some of this audience?
6. Here And Now
For retailers, it pays to be more flexible. In 2022, 'buy now pay later' services continued their ascent, reaching $156 billion (€144 billion) in lending value, according to Euromonitor International.
7. Revived Routines
The pandemic has changed routines for everyone, including consumers. The report suggests that 39% of consumers said more of their everyday activities will take place 'in person' over the next five years.
8. She Rises
Gender inequality, fair representation, equity and inclusivity, were big issues in 2022 and will remain so this year. The retail industry, like every other sector, will have to ensure proper guidelines are in place to stay ahead of these issues.
9. The Thrivers
There is no doubt that the past few years have been stressful for Europe. In 2023, it will not be surprising if consumers put their own needs first, according to the report.
10. Young And Disrupted
Gen Z is an increasingly important demographic to watch out for in 2023. Retailers should note that this is a generation that believes authenticity and social impact make a difference.
“The past few years have been anything but ordinary, and 2023 will be no exception,” said Alison Angus, head of innovation practice at Euromonitor International. “Companies should expect quite divergent behaviour as consumers cope with ongoing challenges while getting back in their stride.”
Retailers cannot control inflation or volatile global situations, but they can control how they approach these situations, and seek to maintain some equilibrium in a rapidly changing and unpredictable corporate world.