Tackling the cost of living crisis, adapting to AI opportunities and getting to grips with shoppers ditching loyalty will be some of the top challenges for retailers this year, according to a new report.
The findings have been published in a new report, Retailers Share Top Predictions for 2023, by ecommerce specialists, Remarkable Commerce, which draws on the expertise of retail experts to share their key predictions for 2023 and the trends and challenges retailers can expect to face.
Online shopping is fast becoming the preferred method for consumers, and ecommerce sales are only expected to grow. According to Morgan Stanley, the market could increase from $3.3 trillion to $5.4 trillion in 2026 – making it a key time for businesses to stand out.
The cost of living crisis is continuing to impact retailers with rising costs in rent, energy bills and transportation fees leading to higher product prices. As a result, customers may be likely to favour more affordable options when it comes to choosing where to buy from.
Paul Adams, head of enterprise retail at Trust Payments warns: “Retailers will need to be resilient over this next year as the cost of living crisis puts pressure on the purses of both retailers and consumers. Inflation isn’t going away anytime soon, which means businesses have to find a balance between the need to keep prices affordable for customers versus diluting margins as costs increase.”
Another consequence of the cost of living crisis is that online shopping will become more competitive, John Place, head of trading at Cherryz says:
“The market will become hugely competitive due to the fact that customers will simply have less money to spend. More shoppers will ditch loyalty to shop around more to get the best prices on their essentials, which is why many opt to shop on an app or online. Those that do best for their customers will survive, those that lose focus and ignore the trends we’ve outlined will have a tough time of it.
Embracing new trends will bring in more opportunities according to Matt Pyke, managing director at Fly High Media:
“Thanks to advancements in augmented reality technology, shoppers will be able to experience products like never before in 2023. Merchants can create immersive AR experiences that allow customers to “try on” clothes, accessories, and other products before making a purchase. The brand’s job is to provide enough information and resources to help consumers make informed decisions.”
As yet another major recession looms, Brad Houldsworth, head of strategy, at Remarkable Commerce shared the importance of creating bespoke systems for the business and the customer:
“With rising rent and energy costs, this year will be challenging for many businesses. If brands hadn’t before, now is a good time to reassess your website and see what is and isn’t working and easily adapt your website as you scale to meet the demands of the customer across all channels.”
Click here to view the full report, Retail Experts Share Key Predictions for 2023.