With the new year came a new lease of life for retail footfall – as sales rebounded, increasing by 1.9%.  But against a backdrop of rising inflation and consumer anxiety, this boost is likely to be short lived and a reflection of consumers choosing to spend more ahead of further price rises.

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.

We will have to wait and see if Covid continues to reach a more stable spot or if there will be another surge in cases, complicating once again which direction consumer spend goes. Regardless, 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.