Global retail trends for 2023
Global insight provider IGD has identified six trends set to influence the global retail landscape in 2023. With inflation driving a significant increase in production costs and retail prices across most major markets, there will be an intense focus from retailers and suppliers on driving out costs, improving the efficiency of supply chains and delivering value to consumers in new ways over the next 12 months.
Toby Pickard, Global Insight Leader at IGD, said: “While many of these initiatives from businesses have been reactionary, they are helping retailers to reset the cost base and develop go-to market models for the future.
“Alongside this, retailers will continue to progress their key initiatives centred on health and wellness, sustainability and digitisation. Progress in these areas is incremental but we predict it will drive significant long-term change in the shape of our industry.”
IGD’s six global retail trends for 2023:
- The efficiency imperative
With cost pressures mounting and retailers having to strip out complexity from their businesses, efficiency is a priority. Technology, automation, collaboration, new ways of working and a fresh approach to marketing all have a role to play. But caution is required as some cost-cutting initiatives are at the expense of the shopper experience.
- The new value equation
Value is not synonymous with price. Both brands and retailers need to factor in a broader set of variables when trying to create value for shoppers. Other factors like experience, rewards, time and doing the right thing can move the narrative beyond price alone.
- The magic of stores
Retailers must delight and surprise their shoppers. But this does not mean by theatre and entertainment alone. Time, convenience, checkout, value and range are areas that can be optimised, in-store and online.
- Force for healthier futures
Interest in improving health remains elevated, and the grocery industry’s remit and responsibility continues to grow. Building trust and making healthy choices affordable and appealing have potential for great positive change. Meaningful progress in 2023 would lay the foundations for future generations’ health.
- Savings for the planet
Retailers will persevere with their ESG objectives as they make their operations more efficient and resilient. Conversely, retailers will be forced to make tough decisions between achieving ESG targets and cost implications.
- Task technology
Retailers have unprecedented access to new technologies, enabling them to operate faster, more efficiently and at lower cost. Ongoing innovation will redefine retail digitisation, underpinning the development of new propositions and business models.
A preview of the report can be downloaded at IGD Retail Analysis.
