6 · S A N TA C L A R I TA VA L L E Y B U S I N E S S J O U R N A L
T
J U LY 2022
Future Retail Trends and Forecasts for 2022-2023
he retail industry, in particular, received a huge blow as brickand-mortar stores had to close. It also meant that businesses had to step up their online game to continue engaging and attracting customers despite the ongoing pandemic. Their rate of adaptation could be the thing that allows them to overcome the challenges brought about by the lockdown. Whatever the case, technological and social shifts are unearthing several retail trends. These can shape the way global consumers buy things — or even what they buy. These shifts in retail are less of a seismic shift and more of a gradual change. The change of direction of retail in the coming years is, surprisingly, not just because of technology but due to changes in consumer behavior. While analysts used to be so sure that e-commerce is the future, the rapid adoption of broadband technology and the shift in “experience over material” commodities have just made e-commerce another channel to shop in. It’s a big channel, though. Our retail statistics reported that global retail e-commerce sales grew by 27.6% in 2020 compared to the previous year, with a total of $4.280 trillion. This doesn’t mean that brick-and-mortar is dead, however. In a survey published by the University of Arizona, a majority of respondents thought that traditional retailers are part of the social fabric and
Sources of Customer Information Retailers Increasing Use to Drive Sales 50%
Transition Data
36%
Traffic Hours
27% Consumer Insight (Social media, online comments)
20%
20%
Loyalty Problem
Online Shopping Information
9% Location-based Technology
DATA COURTESY FINANCES ONLINE
their demise will be bad for the economy in the long run (ScienceDaily). However, store closures, of which there were 11,000 in 2020 — up from 9,300 in 2019 — show how the pandemic has shortened what was supposed to inevitably occur in the long-term (Talk Business & Politics, 2021). 1. Shifting customer behaviors Over 60% of lead US marketing professionals said that their businesses were af-
fected by the pandemic. And yet, 43% of them are not sure whether the changes in consumer behavior will hold after the pandemic (Forbes, 2020). But according to McKinsey, more than 60% of consumers adopted a new behavior plan to stick with even after the pandemic (Fortune, 2020). This might hold true for people who had to resort to shopping online for groceries and other necessities. A survey showed that there was up to a 40% net increase in intent to continue purchasing
Seniors in the US are becoming savvier shoppers, according to Forbes. Because of the pandemic, they are forced to learn how to shop online.
goods online even when the pandemic is over (McKinsey, 2021). In the UK, 5.7 million households shopped for their Christmas groceries online. This could be seen in Tesco’s online grocery sales that reached more than $1.38 billion during the 19-week period. Sainsbury as well had a great Christmas and announced a 128% growth in online grocery sales (Econsultancy, 2021). Moreover, it looks like seniors in the US are becoming savvier shoppers, according to Forbes. Because of the pandemic, they are forced to learn how to shop online and to do consultations over the air. Additionally, demand for smart home devices and assistive technology is anticipated to go up, as seniors are avoiding going to nursing homes. Some are even thinking about spending their savings now. Businesses will do well to target them in their marketing strategies since consumers aged 50 years and older represent 71% of the nation’s wealth. See RETAIL, page 26
