What\u2019s the future of retail? How will consumer behaviors change in 2023? What should merchants do to stay ahead?<\/p>\n
These are all important questions, and while we don\u2019t have a crystal ball that can tell us exactly what the future holds for retailers, we can look at the top industry trends to get a glimpse of what may lie ahead.\u00a0<\/p>\n
To help you gear up for 2023, we\u2019ve put together a roundup of Lightspeed\u2019s top retail trends and predictions for the coming year.\u00a0<\/p>\n
Let\u2019s take a look.<\/p>\n
When the pandemic hit in 2020, many assumed that most retail activity would move online\u2014and stay there. However, as the world opened up, consumers flocked back to brick-and-mortar stores, proving there is still a strong demand for physical retail.<\/p>\n
Meanwhile, ecommerce growth\u00a0slowed in 2022<\/a>, and retail giants like Amazon and Walmart scaled back their warehouse and fulfillment center expansion plans.\u00a0<\/p>\n In the midst of all this, a number of major retailers and brands invested more in physical retail. Ross Stores opened 40 new locations in September and October 2022 alone, and isn\u2019t showing signs that they\u2019ll slow down anytime soon. Similarly, DTC brand Warby Parker opened 13 stores in the third quarter of 2022, and Nordstrom Rack plans to open 8 new stores in 2023.\u00a0<\/p>\n All this to say that the death of brick and mortar has been greatly exaggerated. While customers certainly love shopping online, physical stores will continue to play an important role in their buying journeys.\u00a0<\/p>\n For the most part, consumers have returned to in-store shopping. However, certain pandemic behaviors\u2014i.e., the reliance on BOPIS and speedy delivery\u2014are here to stay.\u00a0<\/p>\n What does this mean for retailers like you?<\/p>\n If you\u2019re selling online and off (and you totally should) you must ensure that your physical locations support all the ways your customers want to shop.\u00a0<\/p>\n It\u2019s essential to have an engaging sales floor that facilitates the offline shopping experience. At the same time, your stockroom must be optimized for online order fulfillment\u2014including in-store pickup, shipping and local delivery.<\/p>\n A solution like\u00a0Lightspeed Retail<\/a>\u00a0can streamline your inventory and order fulfillment to ensure you have the right products both on the sales floor and in your stockroom. The platform\u2019s reporting features help you make smarter purchasing decisions and you can order and receive stock with ease.\u00a0<\/p>\n Lightspeed seamlessly syncs inventory, sales and order across ecommerce and brick and mortar, so you can manage your catalog across all channels. Plus, you can use Lightspeed\u2019s order management and fulfillment features to offer in-store\/curbside pickup, shipping and same-day delivery.<\/p>\n With shoppers using a blend of devices and platforms in their shopping journeys, it\u2019s vital to be present on multiple channels.\u00a0<\/p>\n This means having a marketing and communications strategy that covers both physical and digital channels\u2014including in-store, online, social media and SMS. It\u2019s also important to provide consistency with your multi-channel marketing efforts. Customers should have the same brand experience at every touchpoint.\u00a0<\/p>\n The best way to accomplish this is to use robust marketing solutions that enable you to run campaigns from one platform. For best results, integrate your marketing solution with your POS and retail management system, so you can better track your efforts and ROI.<\/p>\n Lightspeed Marketing & Loyalty by Marsello<\/a>\u00a0enables you to do just that. With features like automated email flows, loyalty marketing and SMS capabilities, you can stay in touch with shoppers on all channels while ensuring a consistent experience all throughout.<\/p>\n Inflation remains a major concern for shoppers, and it will continue to be top of mind in 2023.\u00a0Research by the World Economic Forum<\/a>\u00a0found that 7 in 10 consumers expect costs to rise in the coming year.\u00a0<\/p>\n Aside from reallocating their budgets to essential items, inflation will also prod more people to put purchases on their credit cards. Shoppers may also explore alternative payment methods, particularly ones that give them added wiggle room when strapped for cash.\u00a0<\/p>\n To that end, ensure that you\u2019re able to support the payment needs of your customers. In addition to accepting credit cards (and by extension mobile payments), consider offering services such as \u201cbuy now, pay later\u201d and layby\/layaway.\u00a0<\/p>\n If you\u2019re using Lightspeed, be sure to explore the platform\u2019s payment capabilities.\u00a0Lightspeed Payments<\/a>\u00a0offer integrated payments with simple pricing and no hidden fees. Plus, you\u2019ll work smarter with payments hardware, software and customer support in one place.<\/p>\n Lightspeed\u2019s built-in layaway\/layby capabilities and integration with \u201cbuy now, pay later\u201d solutions like\u00a0Klarna<\/a>\u00a0enable you to offer payment options and flexibility to shoppers.\u00a0<\/p>\n The retail industry\u2019s labor issues will persist in the coming year.\u00a0According to the Washington Post<\/a>, roughly 70% of job openings in retail are unfilled and this will likely continue until at least early 2023.<\/p>\n If hiring is a top priority or concern for you, it\u2019s worth revisiting your salary and benefits packages to make sure they\u2019re competitive. Consider offering perks such as flexible work schedules to attract employees.\u00a0<\/p>\n Technology can also help you weather these labor challenges. Find ways to automate and streamline your operations to reduce manual work. Integrating your tools and systems will enable you to minimize admin work so you can save time.\u00a0<\/p>\n Want a competitive advantage in 2023? Recognize that\u00a0experiential retail<\/a>\u00a0is where it\u2019s at.\u00a0<\/p>\n This is particularly true for specialty, lifestyle and high-end retailers. It\u2019s all too easy for physical goods to be commoditized these days; the best way to compete is to offer experiences that shoppers\u2019 won\u2019t find anywhere else.\u00a0<\/p>\n Industry data supports this.\u00a0Research by the commercial real estate firm Unibail-Rodamco-Westfield<\/a>\u00a0found that 59% of consumers expect retailers to dedicate more space to experiences. The study also found that 81% of shoppers are willing to spend more in retail stores that offer rich shopping experiences.\u00a0<\/p>\n For this reason, it pays to have a strong experiential retail strategy. The right experience depends on your store format and customers. Some retailers find success by offering classes and events. Other stores elevate the shopping experience through immersive in-store design and merchandising.\u00a0<\/p>\n The best way to figure out what works is to gain a deeper understanding of your customers\u2019 needs. It\u2019s also a good idea to test different concepts and see what resonates most with your target market.\u00a0<\/p>\n The metaverse has been one the most hyped up topics over the last few years, with high-profile companies launching AR and VR projects.<\/p>\n In 2022, luxury brands like Balenciaga and Prada\u00a0partnered with Meta<\/a>\u00a0to launch a digital fashion marketplace. And in a separate initiative, Walmart\u00a0joined the metaverse<\/a>\u00a0with Roblox Experiences.<\/p>\n But fast-forward several months later, and it seems like these buzz-worthy launches haven\u2019t panned out. Meta recently\u00a0announced its largest round of layoffs<\/a>, with staff reductions across the company\u2019s AR and VR unit, Reality Labs. Meanwhile, Walmart\u2019s Roblox initiative was met with\u00a0lackluster response and low engagement<\/a>.<\/p>\n These developments tell us that while digital experiences like AR and VR seem cool, these technologies are still young, and most consumers aren\u2019t inclined to adopt them yet. So if you\u2019re planning to experiment with them, tread carefully. You need to have a clear proof concept and strategy behind your initiatives. Be sure to manage expectations and don\u2019t anticipate the metaverse to be a retail game-changer just yet.<\/p>\n Sustainability has been top of mind for a few years now, and it will continue to do so in 2023. We expect retailers to continue improving their sustainability and corporate social responsibilities (CSR) initiatives by selling ethically-sourced products, implementing green business practices and more.<\/p>\n Consumers are more inclined to support companies that invest in CSR.\u00a0Research shows<\/a>\u00a077% of shoppers are motivated to buy from businesses that are committed to make the world a better place and 55% believe companies should take a stand on key environmental, political and social issues.\u00a0<\/p>\n It\u2019s become quite clear that modern shoppers want to align with brands that share their values. That\u2019s why if you don\u2019t have CSR efforts in place, it may be worth exploring these things in 2023.\u00a0<\/p>\n Typically done in partnership with influencers, livestream shopping is the practice of promoting and selling products through livestreams on digital platforms. It\u2019s an interactive experience that allows viewers to ask questions in realtime and complete purchases on the spot.\u00a0<\/p>\n Livestream shopping has been a big thing in China for a while now, and it\u2019s started making its way to North America.\u00a0<\/p>\n 2023 could be the year it\u00a0finally takes off<\/a>\u00a0on this side of the world.\u00a0Coresight Research is estimating<\/a>\u00a0livestream ecommerce penetration to grow from $20 billion in 2022 to $57 billion in 2025.<\/p>\n Moreover,\u00a0research by The Influencer Marketing Factory found<\/a>\u00a0that 36% of consumers in the US and 25% in the UK have purchased something during a livestream. TikTok, Amazon Live, and Instagram are the top platforms for livestream shopping.<\/p>\n While not exactly groundbreaking numbers, the data shows that consumers are open to the concept. Livestream shopping could be worth exploring, particularly if you already work with influencers and have a strong presence on social media.\u00a0<\/p>\n In 2023, we\u2019ll see more retailers go from being purists (i.e., retail-only<\/i>\u00a0stores) to become hybrid locations that have other offerings beyond inventory. We can see this in action in retail stores that set up services, event spaces and even coffee shops within their locations.\u00a0<\/p>\n At the same time, companies in other industries are adding retail components to their businesses. Whether it\u2019s a spa or salon selling beauty products on-site to pop-up exhibits adding a store on the way out, businesses are finding ways to maximize revenue through retail.\u00a0<\/p>\n Hybrid retail locations lend themselves well to unique experiences, which we already know shoppers love. As such, we will likely see more of this trend in 2023 and beyond.\u00a0<\/p>\n Forecasts and predictions aren\u2019t set in stone. If there\u2019s one thing we know for sure, it\u2019s this: 2023 will have some curveballs, and the most successful retailers will be the ones who can navigate these changes.\u00a0<\/p>\n To that end, retailers must equip their businesses with tools that can help them quickly adapt to the market. Such tools include:<\/p>\n Lightspeed\u2019s all-in-one commerce solution offers all of the above and so much more. Lightspeed is a platform designed to grow with you. Built-in features and modules enable you to scale and adapt. Plus our easy-to-use software, pro services, etc empower retailers to implement technology quickly so you\u2019ll never get left behind.<\/p>\n Now that we\u2019ve covered our top industry forecasts, let\u2019s answer common questions people have about retail trends.\u00a0<\/p>\n Retail trends are consumer behaviors and market changes that indicate the state of the retail industry. Some trends (e.g., online shopping, BOPIS, etc.) are more significant than others and can shed light on the long-term direction of industry. Meanwhile, other trends may be classified as fads that don\u2019t enact long-term or meaningful change.\u00a0<\/p>\n The primary way to spot trends is to conduct market research. By observing and collecting data on the behaviors of consumers and businesses, you can identify trends and draw insights and conclusions.\u00a0<\/p>\n Looking at the challenges retailers face can also shed light on where the industry may be heading. Based on what we\u2019ve seen in 2022, retailers today struggle most with rising costs, labor, and higher shopper expectations.\u00a0<\/p>\n The future of retail is bright for customer-centric merchants who are continuously leveling up their operations and finding ways to do better with less. At Lightspeed, we\u2019re committed to serving ambitious retailers who want to succeed and thrive\u2014now and in the future.<\/p>\n <\/p>\n What\u2019s the future of retail? How will consumer behaviors change in 2023? What should merchants do to stay ahead? These are all important questions, and while we don\u2019t have a crystal ball that can tell us exactly what the future holds for retailers, we can look at the top industry trends to get a glimpse […]<\/p>\n","protected":false},"author":34640,"featured_media":219694,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[611],"tags":[21788,21913,22036,3315],"class_list":["post-219698","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ecommerce","tag-e-commerce","tag-lightspeed","tag-retail","tag-small-business"],"acf":[],"yoast_head":"\n2. Physical retail stores need to support sales\u00a0et<\/i>\u00a0fulfillment<\/strong><\/h2>\n
3. Omnichannel marketing will be table stakes<\/strong><\/h2>\n
4. Consumers will increasingly expect payment flexibility<\/strong><\/h2>\n
5. Retailers will continue to grapple with labor shortages<\/strong><\/h2>\n
6. The demand for experiential retail will grow<\/strong><\/h2>\n
What about digital experiences like the metaverse?<\/strong><\/h3>\n
7. Expect a bigger focus on sustainability and corporate social responsibility<\/strong><\/h2>\n
8. Livestream shopping will continue making inroads<\/strong><\/h2>\n
9. Retail will permeate other industries and vice versa<\/strong><\/h2>\n
10. Nimble and flexible retailers will flourish<\/strong><\/h2>\n
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Retail trends FAQs<\/strong><\/h2>\n
What are retail trends?<\/strong><\/h3>\n
How do you spot trends in retail?<\/strong><\/h3>\n
What are retailers\u2019 biggest challenges in 2023?<\/strong><\/h3>\n
Prepare for the future of retail<\/strong><\/h2>\n
Originally posted by Lightspeed\u00a0sur ce site<\/a>.\u00a0<\/h3>","protected":false},"excerpt":{"rendered":"