Consumer optimism despite inflation encourages competition

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Retail sales rose by 0.3% in May despite persisting inflation. Prices are still high, and budgets are still being squeezed, however optimism from the good weather and bank holidays is helping to stimulate the economy. But what we’re seeing are hyper-sceptical consumers who look for more than price value in their purchasing decisions, and they are more than ready to do away with brands who disappoint.

It’s never been more important for retailers to prioritise their customers’ needs, enhance loyalty programs, and provide next-level seamless experiences if they want to remain competitive at this time of high consumer confidence. To do this successfully, it’s about streamlining processes wherever possible – these improvements will remain beyond the period of inflation and ensure agility and resilience in the future.

Finding micro-efficiencies in sourcing, supply chain, logistics, and in-store processes can help retailers save on operating costs and build customer loyalty in the long term. Identifying them can be difficult, so retailers need to connect all data streams and eliminate silos, so they have one central and accessible place for all their data. From there, they can better plan inventory and stock ordering, as well as making the right decisions by their customers. At a time when budgets are constrained, now is the time for businesses to make a change.