Top three retail industry trends of 2022 & 2023 – MSDynamicsWorld
The store industry is in a period of uncertainty and hope. Countries across the globe are trying to recover from the pandemic and return to normal. But what does this normal look like when so many customers have been pushed to adopt mobile technology and remote services like never before?
Early in the COVID pandemic, McKinsey predicted that the retail industry stood at the particular top of the list in terms associated with digital adoption by consumers. The online purchase of goods such as apparel grew by 40% while groceries shot up 100%. To put it bluntly, the virtual genie is out of the bottle and store companies possess begun investing in novel technologies and automation systems to stay relevant and in competition.
Before making any sort of investment, it is imperative for retailers in order to be aware of the industry trends of 2022 plus 2023. Let’s take a look at three of the biggest retail industry styles today.
New workforce challenges
Even a year ago, the labor problems prevailing in the retail industry today would have looked unlikely, given where the particular economy was headed and how common workforce lay-offs were. With the horror plus uncertainty brought on by the pandemic, many predicted that no one would quit a job voluntarily without having another opportunity at hand.
But numerous retailers have got found the realities associated with today’s labor force to present surprising challenges. In fact , 83 percent of retailers are investing heavily in recruiting and retaining employees. Because it will be quite evident that work issues are usually among the key industry difficulties, retailers should reset their thought processes regarding their own employees to be able to prosper in the particular near future. While salaries might be one of the major reasons for the particular “great resignation, ” the issues are far more profound. Frankly speaking, employee priorities have changed, especially around work culture, flexibility, and DEI (diversity, equity, and inclusion).
Around 70 percent associated with retailers state that labor shortages, especially hourly-wage jobs, will be a roadblock in order to retail growth in 2022. Having said that, the biggest pain point for retailers stands at the store level, where 74 percent anticipate shortages in customer-facing jobs. Furthermore, 56 percent of retailers expect shortfalls within the hourly supply chain, distribution, and logistics positions in the warehouses.
What ought to retailers do to address these risks?
- Retailers should invest in a workforce focusing on software and technologies instead associated with relying only on physical labor. At present, it might sound a little strange, but more than half of retail giants believe that will staff-free stores will be a common thing over the next five years.
- Adopting the latest technology to compete with far more tech-savvy industries is usually a must for merchants. Retailers must establish why they are more attractive and lucrative compared to Big Tech for high-demand workers.
- The current store workforce structures clash along with evolving employment expectations. Merchants must appear beyond pay for ways in order to enhance the day-to-day workforce experience. They must find ways to infuse flexibility, culture, and purpose to employ plus retain employees.
- What’s more, evolving priorities mean suppliers need to tackle how they are representing themselves in the marketplace – from a diversity associated with suppliers to career progression for historically marginalized groups. It can help make vendors, workers, and customers feel included and connected with the retail brand.