Sales growth slowed in January, with the cost-of-living crisis and post-Christmas slump encouraging consumers to tighten their purse strings. Despite spring around the corner, the months ahead are still uncertain as consumers reign in spend to cover higher energy bills and food costs.
Cost is the ultimate driver of purchase decision-making right now – but that doesn’t mean expectations for great experiences have dwindled. Businesses need to offer great prices but combine them with great communications and transparency, especially with higher return rates likely after the January sales. Purchasing a product or service is much more than just a transaction, and retailers can use the opportunity to reassure customers that they are on their side, and willing to go the extra mile to look after them.