Retailers need to keep their finger on the pulse of society

396 Views

Consumers are feeling the full effects of rising inflation, and we’re unsurprisingly seeing the knock-on effect on consumer spending, falling by 1.1% in May compared to 2021.

Retailers need to understand current consumer decision making, to ensure they’re offering the right goods at the right time. This month, those selling seasonal items like summer clothing and holiday accessories were the winners. But what will the next trend be? Retailers need to tap into the current context – keeping a finger on the pulse of society is the key to modern retailing. For example, during the jubilee celebrations alone the total number of consumers visiting shops rose by 17% – those who forecast and prepared for this are now reaping the rewards.

Just increasing prices to mitigate inflation is not an option, else retailers risk alienating consumers altogether. Brands need to seriously invest in technology and automation to reduce fixed costs (employee, rental etc.) and make smarter, more streamlined inventory decisions to make the most of seasonal peaks and stay resilient through the troughs.