2022 was an incredibly important year for the retail industry as it works to establish itself in a new era after two years of constant fluctuation. And 2023 will be no different. We’ll begin to see the benefits of some of 2022’s choices and how we could better learn from some of these decisions in the future. From hybrid storefronts to a surge in sustainable products, there are a number of things to look out for this year when setting your retail strategy. Here are 5 trends that we think will truly define the success of retail in 2023.
1. A Continued Rise in Retail Media Networks
Retail Media Networks (RMNs) provide a chance for brands to market at a highly targeted level. These opportunities have continued to grow as the world returns to normalcy from the COVID-19 pandemic due to the new ways that customers engage with their brands of choice, as well as marketers’ newfound problem of often not having access to cookies and other data that had previously been readily available to them.
Selling advertising space on a retailer’s app or website to interested vendors has proven to be increasingly popular among retailers not just for as a new source of revenue, but also for it ability to strengthen partnerships with the brands interested in buying into this space. In fact, in a recent study by GroupM, Retail Media Networks were estimated to account for about 11% of all advertising spending in the world. Every sign seems to be pointing toward the idea that RMNs will continue to grow and become an even more important factor in the retail marketing space.
2. Rethinking the Customer Experience
As mixed-use retail spaces have gained popularity, so too has experiential shopping. In essence, companies today are reevaluating — almost from the ground up — what their customers are looking for and how they can precisely tailor their physical and digital storefronts to give it to them.
The design of brick and mortar stores will be a particular point of interest as retailers experiment with the size and layout of their stores. Some, like Target, has opted to try to increase their physical footprint, offering larger and more all-inclusive storefronts. Others, on the other hand, have experimented with smaller, experience-based alternatives. These more intimate spaces allow customers to focus on the overall experience with the retailer rather than the actual product itself, helping to stand out in a world of neverending products. Unibail-Rodamco-Westfield recently found that 81% of shoppers are willing to spend more in retail stores that offer rich shopping experiences. These can be anything from offering in-store classes to immersive storefront designs and merchandise.
With this in mind, we also believe we’ll start to see more retailers begin to work in a hybrid — or mixed-use — environment. Where previously these stores had been purely for retail, they will likely now begin to incorporate service offerings, events, dining, and more. Imagine sipping craft cocktails while shopping for a new spring wardrobe, or a virtual reality experience that allows you to place new furniture in your living room before you buy it. These ideas are just scratching the service of what is possible within this growing sector of retail.
3. Environmental Consciousness
With Millenials and Gen Z accounting for more and more of the money being spent, retail providers have been searching for some of the things that matter to them that may not have been quite as important for previous generations. One thing that has definitely struck a chord: sustainability.
Young people tend to gravitate toward brands and services that promote recycling and reuse, which has led to a rise in retailers offering pre-owned items to their catalog. 77% of retail customers are motivated to buy from businesses that are committed to make the world a better place. The overwhelming support of this stance has made the secondhand apparel market expected to be worth as much as $82 billion by the year 2026.
4. The Return of Offline Shopping
Though online shopping obviously experienced an enormous surge during the pandemic-filled years of 2020 and 2021, retail customers have over time shown their willingness and even excitement to return to traditional brick-and-mortar storefronts. In fact, online shopping growth rates actually slowed in 2022 leading to many major retailers investing in their current and future physical retail spaces. So, while just two or three years ago, it might have seemed in-person shopping was on its way out the door, in actuality, it’s proved its immense staying power as it clearly isn’t going anywhere.
5. Flexible Payment Options
As you’re likely already aware, 2022 was filled with historic levels of inflation. Though it seems to have leveled off, its effects will likely be felt throughout 2023. In times of drastic inflation, customers tend to put more purchases on their credit cards. However, they’ve also been known to actively seek out alternative payment methods that may help them stay within their budget. This could be something like “buy now, pay later” or a layaway service. Or it could be Prizeout, one of the best ways to instantly stretch your money even further with over 1,300 of the world’s most popular brands. Whatever the case, customers will be looking for these options and could have their shopping preferences swayed by retailers offering flexible payments.
Check back with Prizeout to stay up to date on the latest tips and trends in the world of retail, as well as countless other industries. To learn more about us and for inquiries into working with us, feel free to visit our website.