The cost-of-living crisis and the continued threat of recession are impacting consumer spending, as is evident from today’s results. We predicted the pandemic would be the biggest thing to affect retail in recent years. Yet, we are now in the midst of the most uncertain time that is shaping up to be the worst in a generation.
But retail is resilient, and it wouldn’t be surprising if we see a significant amount of technological innovation out of necessity to keep costs down, improve efficiencies, and reduce waste. Supply chains need to be overhauled and brands will need to strive to become more agile and flexible than ever to successfully map out the customer journey.
Spending will continue to slow for some time, but those that focus on price, convenience, and availability while improving processes will have the best chance of succeeding. Downturns don’t last forever, it’s how they are managed which makes the difference.