The 5 big challenges facing retailers in 2023, and how you can thrive despite them

Retail is a challenging industry at the best of times with so many variables- stock, sales, marketing, supply, returns, reviews, to name a few- and external factors that are out of your control, for example warehouse logistical issues, transport delays, postal strikes, customs checks.  It feels like an uphill battle, as if you are continually swimming against the tide. 

As I look ahead at 2023, here are my top 5 predictions for the challenges facing retailers in the short term:

1. Lack of brand loyalty from customers
2. The customer is alway right, and they want more seamless experiences, higher standards and accountability.
3. Marketing is becoming ever complex, especially via social media. 
4. Employee turnover- workers are leaving the industry in droves, and according to McKinsey, 83% of retailers are struggling to recruit the right people.
5. Consumers are slowing down their purchasing rate, looking to reuse, recycle and repair instead.

How can you mitigate these challenges?

• Be nimble and flexible so that you are able to react to the ever-changing retail landscape; buy in smaller batches, analyse your data before launching a new product, have a diverse suppler base.
• Be transparent with your values, sustainability credentials and corporate social responsibility agenda.
• Choose marketing platforms that work for your business.  Researching where you can reach and engage with your customers is a good place to start, and if you can, focus your efforts on building a loyal following in one place.  Also remember, social media platforms change, affecting your reach.  Always try and capture email addresses, perhaps through a newsletter or signup page, to ensure you can contact your customers.
• Give customers a behind-the-scenes peek at how your products are made.
• Consider innovative ways that packaging can be reused and repurposed so that customers can keep your brand in mind for longer.
• Train employees and actively engage with them.  Ask them what they need to do their best work for you, create a culture of inclusivity and value what they do; show them you care and they will go the extra mile for your business.
• Create brand loyalty by setting up a rewards scheme, or sending customers a voucher for their next purchase if they write a review.  You want to stand out from the crowd, so create an unmatchable customer service experience that exceeds expectations that your customer can share with you when you send a personalised follow-up email. Make your customers feel seen and heard, and they will join you on your long-term business journey.
• Create a seamless experience by keeping your branding consistent with your mission and message; this will differentiate your business. “Do what Amazon can’t do” is a piece of advice I always give; know your USP and your worth, and don’t be tempted to compromise. 

If you are looking to get ahead of the competition in 2023 and want expert advice on the current trends underpinning the retail industry, get in touch.  I can help with:

• Product, market and consumer research
• Creating a customer journey
• Business strategy
• Stock planning and management