Brands will need to be extremely sensitive with their messaging surrounding price hikes. In cases where the jump is quite noticeable, if retailers can’t find ways to take on some of that burden themselves, they would be smart to acknowledge the situation and provide services where possible to avoid impacting consumers’ loyalty.
“As well as product price increases, retailers are also facing cost pressure from rising energy prices, higher shipping rates and ongoing labour shortages – all of which are being passed on to consumers. This will further complicate the direction of consumer spend in the months ahead.
“Despite this, physical retail, supported by e-commerce and apps that keep consumers apprised of real time inventory levels, is sure to make a comeback over time as the weather begins to warm up in the spring and shopping can go back to more of a social event.