While consumer outlook is better than when inflation reached a 40-year high last year, inflated retail prices, higher interest rates, and depleted savings may affect spending in 2024, according to our analysts.
That means retailers and brands must lean on strategies that bolster customer loyalty.
“Loyalty is such an important component of retail … [and it starts] with making sure that you have unique value propositions,” our analyst Suzy Davidkhanian said during our “Ask the Analysts” session at the “Attention! Trends and Predictions for 2024” summit.
Focus on affordability: “Price and value and understanding what that means to your consumer is going to be even more important in 2024,” Davidkhanian said.
Lean into unique: “You need to offer unique experiences or unique brands like private label, [which] is a great way to have [customers] coming back,” Davidkhanian said.
Explore tech tools: Retailers should think of customer pain points and see how technology can provide solutions, said our analyst Yory Wurmser.
“At the end of the day, it’s truly about having something unique,” Davidkhanian said. “Otherwise, people are going to price shop other retailers, which means that you’re not going to win necessarily on price if you don’t have unique things.”
This was originally featured in the Retail Daily newsletter. For more retail insights, statistics, and trends, subscribe here.
One Liberty Plaza9th FloorNew York, NY 100061-800-405-0844