The world of retail is constantly evolving, and the trends that are shaping the industry today are more dynamic and diverse than ever before. From the rise of eCommerce and online marketplaces to the increased focus on sustainability, personalization, and the need to deliver engaging retail experiences, the number of challenges facing retailers intent on staying ahead of the curve have never been so vast.
As consumer preferences and shopping habits continue to evolve, retailers must stay on top of the latest trends to remain relevant and attract new customers. We at Frontier have a wide variety of top retail clients, giving us a front row seat to the radical evolution taking place in the retail industry today. In part one of this blogpost, we’ll take a closer look at some of the most important retail trends in the areas of technology and sustainability.
Data and Technology
One of the biggest trends in retail is the use of data and technology to personalize the shopping experience and improve inventory management. Savvy retailers are using data analytics to gain insights into customer behavior, shopping preferences, and demographics, and using that information to create highly targeted marketing campaigns and product offerings.
Retailers are also using technology such as RFID tags and sensors to track inventory in real-time, making it easier to restock popular items and avoid stockouts. Nowhere is this trend more fascinating than in the grocery business, where long-standing brick-and-mortar brands are adjusting to Amazon’s aggressive moves into the segment.
Online and Offline Integration & BOPIS
Another trend that is gaining traction in the retail industry is the integration of online and offline channels to provide a seamless experience for increasingly digital-first customers. Sophisticated retailers are looking for ways to connect their physical stores with their online channels, such as their websites, mobile apps, and social media accounts. The strategies they’re employing include mobile app integrations that allow for mobile checkout and personalized offers, in-store kiosks, augmented/virtual reality, and perhaps most important, the concept of “buy online, pick up in store” or BOPIS.
BOPIS service allows customers to enjoy the convenience of online shopping while also allowing them to see and handle the products in person before making a final purchase. BOPIS can also help to reduce delivery times and costs for the customer, as well as helping to drive foot traffic to physical stores. BOPIS also allows retailers to better manage inventory, as it lets them fulfill online orders using items that are already in stock at their physical locations. Far from a pandemic fad, BOPIS retail sales are forecast to continue to grow at over 15% through 2024.
Sustainability and Ethical Sourcing
Sustainability and ethical sourcing are also increasingly important in the retail space, as consumers are becoming more conscious of the environmental and social impact of their purchases. This is particularly true among younger consumers, as the notion of ESG is impacting many industries, including financial services.
Retailers are responding by offering products that are made from sustainable materials, and by transparently communicating their sourcing and manufacturing processes to consumers. This includes using sustainable packaging and merchandising display materials that help promote a circular economy. Compostable packaging and “mushroom” leather are just two of the interesting examples of what’s out there.
Be sure to check out our second part of “Retail Trends for 2023” coming out soon.
Retail merchandising is a constantly evolving field, and retailers must stay on top of the latest trends to remain competitive and attract new customers. Frontier Retail was founded 15 years ago with one simple goal—to elevate the customer retail experience by staying on the leading edge of merchandising trends and technology. We design head-turning, engaging displays and fixtures for brands like Adidas, Under Armour, Converse, Estee Lauder, Chanel, COACH, and more. Experience the Frontier difference for your next retail project.