UK Retail Trends 2023

How will your retail business attract and retain customers in what is set to be a challenging economic environment? Cost challenges and consumer behaviour changes mean retailers must adapt to survive.

BearingPoint’s Top 5 UK Retail Trends for 2023 highlight five focus areas to foster customer loyalty in the coming year.

1. Omni channel approach

A seamless and integrated experience across multiple devices and touchpoints. As shopping habits change, retailers will need a digitised and flexible supply chain plus a single view of stock and customers to deliver a truly omni channel approach.

2. Hybrid Experience

Stores are evolving to provide increased customer experience. Expect to see more innovation as customers seek immersive and fun ways to shop from interactive kiosks, avatars to AR Apps and social media shopping streams, with stores evolving into community hubs.

3. Sustainability

Two out of three consumers consider themselves to be belief-driven buyers. It’s important for retailers to have a robust ESG Strategy. Consumers want to see actions, transparency and accountability for how companies are caring for people and the planet. Those leading with purpose will be rewarded with increased loyalty, but brands must avoid greenwashing.

4. Data & Marketing Transformation

Adults in the UK spend over six hours a day on digital media, retailers will capitalise on this. Due to the phasing out of third-party identifiers, we will see an increase in retailers developing their own customer data platforms and prioritise first party data. Mobile accounted for 63% of online Black Friday sales, expect this to continue to grow as consumers absorb more content on the move.

5. Metaverse

The continually evolving phygital space where users can work, play and shop. The future of the metaverse is relatively unknown however Gartner predicts 25% of people will spend an hour per day in the metaverse by 2026. With the return of Metaverse Fashion Week in March we can expect more retailers to expand their offerings through digital marketplaces.