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GLOBAL 2023 RETAIL FORECAST

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There’s no way around it, the last few years have been tough for retailers, e-commerce brands, hospitality
operators and F&B concepts around the world. Firstly a worldwide pandemic brought the industry to its
knees and then just as things began to return to something resembling normality, an unstable geopolitical
environment and sharp rises in the cost of living in regions around the globe exacerbated the problems that
already existed and created a difficult trading platform. As a new year begins, businesses are starting anew
and we spend the next few pages taking a look at the trends that will reinvigorate the industry.

ndustry professionals know all too well that the Covid-19 stream for retailers and allows them to deepen their relationships
pandemic, followed by the global recession changed the course with business partners.
Iof business and growth operations in the long-term. In the past 2. Social Media Sentiment Monitoring - Social media
few years, companies around the world have faced difficult conditions sentiment monitoring is collecting and analysing information on
amidst the wave of an unpredictable virus, its resurging variants and how people talk about a retailer or brand on social media. Actively
raising inflation. engaged on social media, retailers can better understand data about
What many didn’t predict however was that 2022 would not be the their customers’ sentiments, preferences, and attitudes toward
return to normal the majority expected. While the last 12 months may their company and its competitors.
not have been as difficult as the pandemic times, the new issues that 3. Hybrid Shopping and Seamless Shopping Journey -
have arisen have led to different problems that many will be looking to Retailers want to deliver a seamless experience across all shopping
overcome as they look to 2023 with renewed optimism. methods, including online, in-store, mobile devices, social media, and live
streaming. However, providing a holistic view of the shopping journey
Retail Sector requires that retailers merge the siloed data across every business
Retailers and brands are coming out of a pandemic that has essentially function into a synchronised format that all groups can view within an
lasted three years. Over the past year, challenges across the supply organisation, including merchants, marketing, store operations, digital
chain, inflationary pricing, economic uncertainty, and geo-political teams, human resources, and finance.
factors have taxed retailers and squeezed the financials. With the start 4. Store Design Shifts and Mixed-Use Spaces - Store designs
of a new calendar year, however, there is a positive outlook and focus have been imperative over the past two years as retailers adjust store
on the customer shopping journey. As retailers adjust to a new normal, sizes and dabble in experiential retailing. Larger format stores like Walmart
a seamless experience and hybrid shopping are shaping the future of and Target have tested smaller formats like the Target Campus stores
retail. This is the view point of Shelley E. Kohan, Senior Contributor or Walmart’s Neighborhood Markets. At the same time, Target recently
– Retail at Forbes in her article ‘The 5 Biggest Retail Trends For 2023’. announced it plans to invest in larger stores that offer 20,000 more square
feet of space than its average store and include new store design features.
The five retail trends that Shelley lists are the following: Many retailers are adding features to support new shopping initiatives
1. Retail Media Networks - Physical retail stores and websites such as curbside pick-up, fulfilment from stores, and pick-up in-store. Ulta
are becoming increasingly crucial as advertising sources for their Beauty recently announced its store redesign that will put forth its beauty
vendors. Selling marketing space to vendors is a growing revenue point of view through merchandising and design elements.

30 RETAIL & LEISURE INTERNATIONAL FEBRUARY 2023