According to retail insight firm Acosta Group via the CSA, shopping patterns for 2024 will include the following five predictions – encompassing technology, marketing, and consumer trends.
1. Driving Growth
Although consumers are expected to continue being cautious with their spending, according to Acosta’s recent Retailer Confidential Report, 90% of the top US retail leaders are prioritising unit growth for 2024. The company recommends that retailers: a) create promotions that don’t erode margins for retailers, brands or shoppers; b) deploy/evolve revenue growth management programmes; and c) practise disciplined post-promotion analytics.
2. Seamless Retail
Innovative, disruptive technology aimed at making the retail experience ‘seamless’ for shoppers will continue to be important in 2024, noted Acosta Group. According to its own research, 63% of shoppers use an app on their phone inside a store while grocery shopping, with that number increasing to 80% for Gen Z and 81% for millennials.
The company recommends that retailers integrate trade, marketing and retail media spend, targeting specific shoppers and ‘need states’ with both in-store and online merchandising, to maximise budgets, grow sales, and improve margin. Retailers can also strengthen online product detail pages with searchable words, hero images – the first thing that visitors see on a website – infographics and more, while placing a strong focus on the ‘share of shelf’ and assortment optimisation, to meet shopper demand and keep shelves stocked.
3. Artificial Intelligence (AI)
Successfully applying artificial intelligence (AI) in 2024 will also be key for retailers, with Gen Z being the cohort most comfortable with retailers using the technology to improve their shopping experiences via personalised rewards and recommendations.
Acosta Group recommends prioritising the use of AI for supply chain and logistics efficiencies, implementing the localised assortment, and price/promotion optimisation, while using the technology to streamline overall operations.
4. Clean-Label Concerns
More and more consumers are concerned about processed foods, often opting for clean-label products. According to FMCG Gurus, 41% of consumers have heard of clean label, considering it natural and healthy, and 78% find it appealing when provided with a definition thereof.
According to Acosta Group, in 2024, retailers and brands will better understand that analytics segmenting key label attributes will be important, actively communicate what additives or chemicals aren’t in their products, and use social and digital media to educate shoppers while demonstrating the value of their products.
5. Focus On Foodservice
Finally, Acosta Group predicts that further competition between restaurants, convenience stores and retailers will shape foodservice in 2024. The group’s Retailer Confidential Report found that 71% of retail executives are expanding their fresh-food offerings.
In the new year, retailers should enrich the in-store experience and create reasons to linger, sample and dine, create cross-promotions to provide shoppers with meal solutions across all occasions, and elevate digital integration.
“While we expect 2024 to remain as complex as 2023, brands and retailers will have opportunities to better understand and meet the evolving demands of their customers, securing meaningful growth for their businesses,” said Colin Stewart, Acosta Group’s executive vice-president of business intelligence.
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