What will be in store for retail in 2024?
As 2023 draws to a close, experts in the retail space have shared their thoughts on what next year might look like for the sector.
Erin Brookes, European retail and consumer lead at Alvarez & Marsal, told City A.M the sector will continue to evolve next year.
“Shoppers are being increasingly selective, balancing value, quality, and environmental impact,” she said.
However, Brookes said that there is a growing divide between retailers who “strike the right balance with stock and staffing.”
“There’s a growing divide: retailers who strike the right balance with stock and staffing, often embracing enabling digital tools and technologies are pulling ahead, while others who are lagging contemplate decisions about where to invest across their often multichannel landscape,” she explained.
“This is unfolding against a backdrop of enduring technology innovation, the battle for customer loyalty, increasingly ethical consumerism, and the cost-of-living crisis.”
“Shoppers are being increasingly selective, balancing value, quality, and environmental impact.”
She added: “The line between struggle and success for retailers hinges on their ability to adapt and excel in delivering compelling products and a great shopping experience.”
“Those unable to meet these standards may find themselves struggling to keep pace in an increasingly competitive and differentiated market in 2024.”
Meanwhile, Matt Hildon, retail portfolio director at consultancy Kin + Carta said that loyalty schemes will play a pivotal role next year.
He said: “Loyalty schemes will become the differentiator for retailers in 2024.”
“Budgets will be increasingly focused on getting people into their loyalty ecosystems which will in turn see brands start to focus their spend on retention of customers via highly personalised offers, rather than spending advertising pounds often at a high CPA.”