1. Calculated spending

Shoppers are expected to prioritize value for money, with discounts and deals remaining significant. Brands may need to emphasize product longevity and durability, while the growing trend of re-commerce indicates an increasing number of consumers buying and selling second-hand items.

2. Unconscious shopping

Consumers discover and purchase products while engaged in other activities, whether on social media, gaming, or streaming content. This trend calls for retailers to prioritize creating immersive experiences in-store.

3. AI as a co-creator

Artificial Intelligence is expected to play a growing role in product development, serving as a co-creator rather than replacing human designers.

4. AI and cosumer data

Additionally, AI is leveraged to enhance customer experiences through shopping assistants providing personalized recommendations, sparking concerns about consumer data privacy.

5. Retail media comes to the store

Retail media networks, previously digital-focused, are expanding into physical stores.

6. Increase in medium-term pop-ups

The report predicts an increase in medium-term pop-ups, offering brands the benefits of physical retail without the long-term commitment. These pop-ups, lasting 2-3 months or even a year, provide valuable insights into consumer behavior.

7. Radical transparency

Bands will prioritize radical transparency, openly sharing details of sustainability efforts and calling out other brands and government policies.

8. Brand-led positive change

Brands are expected to focus on helping customers address challenges through sustainable products without significant price increases.

9. Supply chain resilience

The volatile global situation emphasizes the importance of resilient supply chains. Retailers invest in automation and explore local and non-traditional sources to reduce reliance on overseas suppliers.

10. Inventory management

Shifts in consumer behavior lead to longer buying seasons, prompting retailers to invest in technology for real-time stock data and dynamic pricing. Businesses adopt a little and often buying behavior to manage inventory and cash flow effectively.

In conclusion, the top 10 retail predictions provide an comprehensive overview of the European retail landscape, guiding brands on key trends to navigate and capitalize on in the upcoming year.

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Source Fashion takes place on 18th – 20th February 2024 at Olympia London.

Source Home & Gift takes place on the 4th – 7th February 2024 at NEC Birmingham.