Trends that are shaking up the retail sector

“Uncertainty becomes a habit that must be dealt with“, announces Sandrine Préfaut, General Manager Europe of Locala. After a phase of rebellion to protect the purchasing power of a consumer who is more than ever in difficulty in a context of price wars and cost battles, new retail is becoming the norm. It now imposes its standards : digitalization, omnichannel, unified commerce, hyper personalization, proximity, sustainable business models… have become essential.

Also, at the end of a summer season marked by a mixed atmosphere, with a significant drop of 7% in attendance at points of sale in June compared to 2023, the start of the school year promises to be a crucial moment for retail players. With Paris Retail Week scheduled for September 17, 18 and 19, it is the ideal opportunity to analyze the evolution of the sector and prepare for the challenges to come. So, In the fourth edition of its “Retail Insights” barometer, Locala takes stock of retail trends in France and internationally and deciphers the changes that are shaking up the sector. 14 underlying and emerging trends emerge from this new edition and some of them have a strong impact on the French and European retail landscape. Among these trends:

• Good deals, new shields. The price war is raging and brands must find a balance between a quality offering and competitive prices. Moreover, our study shows that more than 90% of Europeans pay more attention to prices and promotions. 78% of consumers regularly use brand mobile applications to obtain personalized offers and deals.

• Omnichannel efficiency is no longer an option. More than ever, consumers want to be able to move from one channel to another easily during their purchasing journey. Moreover, we observe that 73% of consumers make their purchases using several channels. According to our study, 67% of French people prefer to go to stores to make their purchases and 33% prefer to buy online. This figure demonstrates the diversity expected by consumers, phygital is becoming essential.
• Sustainable development, an unavoidable constraint. Conscious Retail has become tougher and has become an obligation under pressure from consumers and regulations. This phenomenon now concerns all generations. Indeed, even if Gen Z is even more aware of this cause with 71% of them saying they buy sustainable products, boomers are not left out since more than half also say they buy sustainable products. Companies must therefore engage with transparency, which is leading to a rapid evolution of retailers’ business models around the concept of the circular economy..

• AI: from buzz to reality. AI is entering our daily lives and penetrating all sectors and all retail professions. The success of AI can be explained by the multiple opportunities in terms of operational applications, particularly in logistics and customer service. The study reveals that retailers who have already adopted AI and machine learning technologies have doubled their sales growth rate in 2023 and forecast profit growth for 2024 would be almost 3 times that of their competitors.