In a climate of rising inflation & economic uncertainty, retail is suffering

BRC’s latest sales growth figures have shown a slow down in January – as consumers cut back on spending. In a climate of rising inflation and economic uncertainty, retail is suffering. The cost-of-living crisis continues to cast a shadow over the sector which will surely extend over much of 2023.

Consumers are a lot more selective with what they spend their money on, and for good reason. It is no longer about what they want, it’s about what they need. Everything else becomes secondary. Brands can no longer rely on high discount prices or other short term incentivisation tactics. Non-essential retailers have fewer opportunities to stand out and leave a long-lasting positive impression with consumers.

Customer experiences and loyalty will make all the difference. Retailers must ensure they are aligned with their audience’s point of view, managing expectations whilst personalising the customer journey to connect with their audiences. They cannot settle for being ‘one-hit-wonders’ and alienating consumers. The focus should be on nurturing their relationships to cement their loyalty for long-term success.