Retail is one of the sectors most impacted by the global pandemic. Over the past year, the trends of retail 2022 have gradually changed and directed retailers and consumers to new experiences. In this article, let’s look back at 5 retail trends in 2022 that drive new imperatives.
5 retail trends in 2022
Consumer spending: changing shopping behavior and rising expectations
Retail 2022 recorded a significant change in consumer spending. They tend to change their shopping behavior and increase expectations after the pandemic. This is a time when sales are heavily influenced by digital trends. This trend is likely to continue in the coming years. However, some retailers still have difficulty managing and aligning sales channels to deliver a consistent customer experience. Besides, personalization is also the needs and expectations of consumers, so businesses need to pay attention to this factor.
Supply chain management: disruptions and constraint-based planning
In 2022, one can observe market volatility and sudden shifts in consumer behavior impacting supply chains and forcing retailers to redesign order fulfillment models, streamline their portfolio and rethink their supplier network to meet consumer demand. Supply chain disruptions can continue for quite some time. As a result, retailers must prepare for that disruption of supply logistics. Retail supply chains will need to be reconfigured because of these global disruptions. Effective retail supply chain management can bring many benefits to businesses. Therefore, they need to align planning decisions with demand forecasting and inventory management to promote a seamless supply chain.
Retail 2022 is greatly affected by the precarious economy. Consumer spending has been influenced by inflation. This has had a negative impact on the revenue of some retailers. For other retailers, it causes product switching and increased costs. From there, they face a squeeze from consumer expectations and retail business costs. With retail inventory planning and management, leading companies determine product assortment, placement, pricing, promotions, and life cycles to achieve maximum profitability at a time when productivity and profit is most important.
People and productivity: attracting and retaining talent
Operating processes including labor, purchasing, forecasting, and sales must adapt to meet new consumer expectations. Businesses have to implement programs to attract and retain talent. However, this is increasingly difficult. They need to establish a modern and attractive workplace, where employees have the right tools, automated workflows, and the data they need to do their jobs.
Meeting and measuring ESG and sustainability goals
More specifically, businesses are aiming to meet and measure ESG (Environmental, Social, Governance) towards sustainability goals. This is a goal that is expected to be embedded in every business process a retailer does from the way they plan, buy, move, sell, and attract customers. What customers expect more is that the product material they buy must be safe for the environment and long-lasting.
From the above trends of retail 2022, retailers’ new imperatives are first and foremost to become closer to the customer. To accomplish this goal, businesses need a data model to better understand the wants and preferences and use of customer data throughout the process. Besides, what brands need to do is build a blueprint for flexibility because retail markets and trends are constantly changing. More than that, creating space for innovation is just as important. However, this requires freeing up resources to help drive innovation.
Retail 2022 has witnessed a significant change in consumer behavior and trends. This has led to predictions of future trends for retailers. If your business is in need of assistance with retail management, feel free to contact us.