6 Ways Retail Will Look Different This Sales Season
Experts reveal how consumers will shop, spend and save – so you can get ahead of the curve and maximize sales.
Amid a pandemic, war and economic turmoil, we’re living in unique times. Consumers are being hit by the rising cost of living, while businesses are navigating supply chain delays, shipping issues, and rising costs of materials and commercial rent.
But it’s not all bad news.
In the U.S., recent Coresight Research data showed that more than 75 percent of consumers feel ready to shop, and only a small minority are avoiding shopping centers and malls since the pandemic.
That said, 2022’s unique circumstances set the stage for a unique sale season in many ways. Here, experts weigh in on the current retail landscape – and share how merchants can adapt and thrive this holiday season.
1. Christmas will come early
With inflation rising, budget-conscious shoppers are likely to be anxious to get in early to beat the crowds and avoid price hikes and shipping delays. This means merchants need to be well-prepped for the season in October, if not before – read our small business checklist for the sales season here.
While Black Friday falls on November 25 this year, many businesses are rolling out sales earlier and earlier, even in October. This pull-forward strategy might help merchants stand out from the crowd. Of course, if you go too early, you’ll miss out on shoppers who are holding out for a better deal.
The secret may be “leaking deals” through your EDMs and social media in October, teasing customers to drive excitement for your November sales, and even doing the random flash sale on a particular product or line. Plus, you’ll want to keep an eye on when competitors go on sale.
With inflation rising, budget-conscious shoppers are likely to be keen to get in early.
2. Shoppers are ‘trading down’
As inflation bites, shoppers will start to see their spending power falter. “Retailers will have to work harder to show both the quality and value of their goods,” says Helen Dickinson, chief executive of the British Retail Consortium. “Many households are already finding themselves ‘trading down’ – buying the cheaper ranges of goods – meaning that retailers must either show the value of higher-end brands, or expand their existing affordable ranges."
The Black Friday/Cyber Monday (BFCM) and pre-Christmas periods are an opportunity for merchants to cater to cautious or cash-strapped shoppers with slashed prices.
But between sale days, not every business can afford to be the cheapest on the market, especially when competing against retail giants. One way to retain customers in this landscape without constant discounting is to look to offering exclusive products. “Offering exclusive products makes price comparisons difficult,” explains Marie Driscoll, Coresight Researcher. “Exclusives, limited editions and collaborations with exciting brands drive shopper engagement and traffic.” Another option is a free gift with purchase [link]
3. Shoppers' loyalties are changing
Research suggests that, worldwide, we’re in the midst of a “loyalty shakeup” with more consumers switching to different brands in 2022 than in 2021 or 2020, according to McKinsey research.
Hold on to your high-value customers by granting them early access to sales events or special discount codes – and think about how to take advantage of customers’ willingness to try new brands. How can you encourage consumers who haven’t shopped with you before to purchase with you for the first time? Make sure the path to purchase is as smooth as possible – that your website is fast, customer service is on hand and that you offer a buy-now-pay-later service like Afterpay.
“Retailers will have to work harder to show both the quality and value of their goods."
4. Consumers are craving positivity
A few years ago, a sale banner or discount email might have been enough to land a transaction, but customer behavior and desires have changed. Today’s financially squeezed shoppers need more – including a reason to feel good.
“If you go right back to why it is that people shop, it’s never just about getting a product; it’s the way that it feels when they [shop],” says retail expert Ingrid Maynard, director of The Sales Dr.
“How do we make sure that at every step along the way, however [customers] choose to purchase, they have a positive experience? This year, in particular, it’s about linking spending money [with positivity], instead of triggering stress.”
Consider how to communicate the benefits of your products (via signage, social media, EDMs). Value is an obvious one, but think beyond this – for example, how will shopping in your sales make your customers’ lives easier? Can they check off their Christmas list early? Enjoy free or fast shipping? Or feel less overwhelmed as the calendar turns to December?
Bob Phipps, a U.S.-based retail educational specialist who helps businesses better understand customer behavior, emphasizes that this year, merchants shouldn’t be too pushy with their sales. Cramming customers’ inboxes with discounts and coupons throughout the holiday season could be overwhelming for shoppers, plus it teaches them to always wait for a better deal.
5. ‘Wow experiences’ will attract shoppers and drive sales
Online retail has been growing consistently for more than a decade, but it was the pandemic-induced lockdowns of 2020 that saw the explosion of e-commerce.
The upshot is that brick-and-mortar stores have their work cut out for them, and they will need to create environments and experiences that customers want to try in order to lure them off the couch and into stores.
“With the COVID scare abating, we’ve seen consumers returning to stores showing a pent-up demand for the social side of shopping, which includes in-store events as well as occasion-driven promotional activity,” says Driscoll, who recommends creating a “festival-like” atmosphere around BCFM sales.
In-store offerings to entice and delight shoppers include access to experts in-store (such as brand founders or influencers); free product demonstrations (especially for beauty products); gift-wrapping facilities; personalization for leather goods; and frictionless pay, including the option to buy now and pay later.
"We’ve seen consumers returning to stores showing a pent-up demand for the social side of shopping."
6. Customers will expect multiple delivery and return options
Whether your business is online, brick-and-mortar or both, offering a range of delivery and collection options will be essential this year. Store pickup, for example, was normalized during pandemic lockdowns and is now widely expected by shoppers (especially those who leave their shopping to the last minute).
Driscoll believes that businesses should provide a “consumer-centric omnichannel strategy” through which customers can receive their orders in multiple ways. Examples include BOPIS (buy online, pickup in-store); curbside pickup; and buy online and return in-store.
Another option is the “find in store” function, where online shoppers can check stock levels for a particular product online, and then go to a store and view it or try it on in person.
Each of these methods creates a “crossover experience between online and in-store,” Maynard says, not only making the customer’s life easier, but reducing shipping costs, minimizing online returns, increasing foot traffic and driving up cart size. According to the International Council of Shopping Centers, more than half of adult shoppers use store pickup, with 67 percent of them adding additional items to cart when they know they can pick them up immediately.
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