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5. Consumerism Curtailment - 2023 is the year that we will evolving consumer preferences require more effective analytics and
see consumers slowing down — in other words, a consumerism tools to build loyalty.
curtailment. Repair, recycling, reuse, and thrifting will grow. Simply put, Lupine and Nick believe there are three key areas that retailers can
consumers will buy less stuff and be more invested in understanding – and should – address now to create efficiencies while addressing the
the product life cycle. As Gen Z earns more money, companies changing consumer:
focusing on sustainability will win out. Pre-owned products, recycling, Last-mile capabilities - Seven in 10 leaders say they are very confident
and reusing are becoming more mainstream and increasingly expected that they will be able to deliver a seamless experience to consumers
by consumers. across channels, compared with only two of 10 laggards. To do so,
The Deloitte perspective piece ‘2023 retail industry outlook – retailers should consider creating more profitable last-mile delivery
Embrace the changing consumer to bolster growth in inflationary times’ solutions by investing in automated micro-fulfilment centres (MFCs).
by Lupine Skelly, Retail, Wholesale & Distribution Research Leader and Reverse logistics - Every return is an opportunity for retailers to save a
Nick Handrinos, Ice Chair & US Leader – Retail & Consumer Products sale. Retailers should look to take advantage of in-store reverse logistics
highlights that whilst change can be good, constant change can be capabilities. In-person returns satisfy customers’ desire for immediate
daunting. They go on to say that retailers today are feeling the hangover credit while reducing expenses for mailed return delivery. And with the
of such volatility occurring in the most condensed time frame of any growing popularity of return bars - stores that pack and ship returns for
recent business cycle. partnering retailers - there is an opportunity to drive additional store
Almost all retail executives expect inflation to pressure their profit traffic and expand the footprint of their client base, an ideal situation
margins. They’re also predicting hard times for consumers, with nearly during inflationary times.
all anticipating diminished consumption in 2023, resulting from rising Social commerce - Retailers should invest in technologies to provide
financial concerns. a seamless purchasing experience within social channels and shoppable
But the retail outlook is not all gloom and doom; retailers have learned media to nudge users toward purchases and create loyalty. Enabling
much about resiliency in the past few years. The massive demand shoppable tags with product information, embedding the brand website
fluctuations during the pandemic have forced retailers to rethink archaic into the social media app, and enabling in-app transactions can help
systems in favour of more pliable operations. They learned that rapidly reduce friction on the shopping journey.

FEBRUARY 2023 RETAIL & LEISURE INTERNATIONAL 31