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The scary nature of change

by | Oct 31, 2022 | Blog

Change, one of the scariest things to us as humans. So, why are we driven to fear change? Well, our brains are designed to find peace in knowing, and with change the outcomes of our actions are always unknown. However, it is said that resisting change is one of the most single business limiting moves you can make.

For those operating in retail, it only means one thing, change is inevitable. In fact, hardly any other sector has or will experience change, transformation and evolvement as much as todays retail industry. It’s a very exciting, but scary place at the same time to be!

Retailers have already been challenged to their limits to adapt to some of the most uncertain circumstances in the past few years, the fear of change for them is real and is only set to grow. 2020 saw a Worldwide Pandemic, 2022 brought a Ukrainian War, Cost of Living Crisis, rising Inflation and a threatened Recession. It’s hard to imagine exactly what 2023 is going to bring. But, we can make a good prediction.

One thing for sure is that consumers themselves are ever evolving, always surprising and are the driving force behind change. Retail success now stems and relies on the ability to re-imagine, adapt and embrace change at pace, for all the potential opportunities that await to be able to meet the unmet needs within the market.

The key for 2023 is to be ahead of the game. Upcoming trends are going to be clear markers and indicators, as to where retailers should place their attention and divulge their investment choices and decisions. How we did things this year, won’t be the same next year therefore the ability to continuously develop strategy still lies at the heart.

 

Consumers remain key in retail and always will. There is huge pressure to personalise but effectively, delivering products and services how and where they want them, at a price they will pay, at a value they accept.

In 2023 the war on customer loyalty will grow, communicating with audiences as collaborators rather than just customers, which is a new mindset larger retailers will need to replicate. They need to be asking themselves what do I need to know about my customer both now and in the future? As obtaining the right data and information is going to be essential when it comes to truly personalising consumers retail experiences next year.

The focus needs to remain on providing increasingly differentiated experiences, and finding useful ways to use space within the store to help play a clear role for consumers.

When it comes to supply chain operations, retailers will need to broaden their options to decrease risk, seeing more hybrid models. Innovative technology should continue to lead the way and influence this through focused AI and robotic solutions, to help increase competitive advantage and consumer demand.

 

– Stuart Smith, Tessiant Managing Partner, Ex COO Tesco & Morrisons

What are some of the retail trends and changes can we expect to see in 2023?

  • Ecommerce – the uprise will continue, as its very much here to stay and will account for a large proportion of retail sales.
  • Concious Consumers –  their perspectives will shift again, on the digital, cost and environmental front.
  • Consumer Research – consumers will research more and spend less, so marketing content needs to immediately demonstrate and hit them with the value.
  • Safety – a growing concern to most consumers, in terms of how their data is being collected and used.
  • Self Service – utilising technology to offer more options to consumers, to boost convenience, speed and efficiency.
  • Chatbots – there will be a rise in  these, since they are predicted to become one of the main customer service tools, that gives consumers a way to communicate with retailers 24/7.
  • In Store Appointments – giving consumers exclusive time to themselves in the store environment, personalising the experience at new and greater lengths.
  • Omnichannel – the boost in this is set to continue, working on integrating store and online even more seamlessly.
  • Transparency – when it comes to shipping, retailers will be held even more accountable, they need to set clear and realistic expectations for consumers.
  • Waste – reducing waste is a priority now to a lot of consumers, they want to see retailers using recyclable and sustainable packaging as much as possible.
  • Supply Chain – retailers will need to work on becoming even more flexible and agile than ever before to continue to meet demand.
  • Livestream Shopping – this is just starting to take off, and set to be the hottest trend in ecommerce e.g. Amazon Live and Tik Tok Shop.
  • Influencer Marketing – starting to form long-term influencer partnerships to boost engagement.
  • Same Day Delivery – set to be the new ‘norm’ in retail offerings in the upcoming year, to further meet consumers growing expectations.

 

Looking to embrace change and transformation instead of fear it? Want to get ahead of the game in terms of the challenges and opportunities retailers are set to face in 2023? Eager to work alongside our team of talented senior retail professionals like Stuart? Get in touch with a member of our team https://tessiant.com/contact/