The Top 10 Retail Predictions for 2024
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No-one wants to read about omnichannel, personalisation and convenience yet again. Take those as a given for the next 12 months – just as they were the last year and the one before that.
In our list of 10 retail predictions for 2024, we’ve tried to go a little deeper than single word concepts to get to the heart of what’s going to be affecting the industry, the customer, and the way you do business.
Some of our predictions for 2024 in retail are large shifts. Some are smaller and quieter trends that will have a big impact. Some are an opportunity to get ahead of the competition.
All of them should be on your radar for the coming year.
Consumer Behaviour
1. Calculated Spending
With the economic outlook for 2024 not looking any brighter, shoppers will remain conscious about what they are spending over the coming year.
Value for money is the name of the game, but the definition of value will be different for individual shoppers and may change depending on the product category.
Discounts and deals will still be a priority for many. Retailers like Tesco and Boots are tying their best prices to their loyalty schemes, which sees consumers trading their data for a better deal. It’s likely that other brands will follow the same approach.
For some consumers value for money will lie in product longevity and durability, which creates an opportunity for brands with a reputation for quality and reliability. Others will treat more expensive purchases as investments, looking for items that hold value and can be resold in the future.
Product story is another way brands will prove value to the consumer. With shoppers being more calculated with their spending, retailers may need to make a strong emotional case for non-essential purchases.
The economic environment will also fuel the ongoing growth of re-commerce – not only consumers buying second-hand but also more and more moving into selling unwanted items to make money.
The visibility of re-commerce will grow as retailers look to expand the options for customers to keep buying from them – even if they can’t justify constant new purchases. H&M has just added pre-loved items to its Regent Street store in London, including brands and designers outside of its family of brands, and we expect other mainstream names to do the same.
2. Unconscious Shopping Takes Over
Shopping used to be a conscious action. The consumer was deliberately looking for something they wanted or needed – whether shopping in store or online.
Now consumers are increasingly buying and discovering products while doing other things, such as browsing social media, playing games, and streaming content. This shift towards unconscious shopping will continue to grow in 2024.
Unconscious shopping is all about discovery, so brands and retailers will increasingly develop content and experiences that have this in mind. Humans also love to talk about the things they find and love, so creating community spaces where consumers can share discoveries will also be key.
Although a lot of unconscious shopping happens digitally, it also includes in-person events where the store is a stage, like the raves held by IKEA in Milan and Flannels’ Beyonce exhibition.
Notably, Netflix has recently announced plans to open themed spaces in 2025 that combine retail, dining, and live experiences related to its most popular content. The media giant already hosts a pop-up restaurant –Netflix Bites – in Los Angeles that serves a special tasting menu from the chefs behind its biggest food shows.
Instead of ‘experiential’ retail stores that function like a traditional store with a small experience added on, retailers embracing unconscious shopping will increasingly flip this model and put the experience first.