Retail Trends Shaping 2022

In this article, we explain what are the retail trends that will shape 2022 and how they will affect the retail and e-commerce world.

The retail industry is rethinking every detail of the shopping experience, redefining not only how we shop and sell, but also the incredible advantages that local, independent retailers currently enjoy. The boutique on your city’s high street, the shoppable post that appears on your Instagram feed, and the marketing email that sends you to an online store can all come from the same retailer. And that retailer works very differently now than it did before the pandemic.

Retail trends that will shape 2022

Local and independent retailers are increasingly turning to digital technologies. New opportunities are emerging for local retailers to make a name for themselves and take on bigger competitors.

A survey of 1,000 consumers and 500 retailers conducted by Wakefield Research revealed the transformation of the shopping experience and illuminated why 2022 holds huge opportunities for local retailers.

Retailers move online to take on bigger players

Independent retailers can connect with customers locally and gain an advantage by selling online as well as maintaining a local presence. Today, consumers make 43% of their monthly retail purchases online and 88% of retailers are meeting this need by selling online. As many retailers are changing their business models, going online increases the chances of success. Online retailers generate 58% of their revenue from online sales.

Blending online and physical store shopping creates more meaningful experiences

Despite the massive shift to e-commerce, nine in 10 consumers still crave the thrill of shopping in a physical store. Nearly half of consumers say they miss being able to browse products and leave the house, while two in five say they miss being able to pick up and use their purchases instantly. Online experiences do not replace face-to-face interactions, but rather complement them. Customers still want to experience the joy of walking into a store and finding exactly what they want on the shelf, or the thrill of stumbling across a product they want by pure chance.

Same-day delivery can give local retailers an advantage over big chain stores

Three in four consumers prefer same-day delivery when shopping online. However, only 37% of retailers offer same-day delivery. While shipping delays and supply chain issues are now more common, local businesses have an opportunity to gain an edge over the big e-commerce players by offering same-day delivery. Local retailers are closer to customers and can drive more sales by putting systems in place to get products to customers faster.

Social selling and e-commerce complement each other

Local retailers have a deeper understanding and appreciation for their communities. They can therefore connect with local customers better than their competitors. Whether through a fully shoppable store or a flash sale, social selling is made possible through e-commerce tools, helping local retailers reach more customers. Online shoppers say they buy an average of eight products on social media sites each month. 43% of retailers who sell on social media say that half or more of their revenue comes from social media sales.

Virtual experiences bridge the gap between the online and physical parts of a store

As customers become more comfortable buying on social media, new ways to engage through these platforms are emerging. This year, one in three retailers will invest in live streaming shopping, while 35% plan to explore ways to sell through virtual reality (VR). These investments can lead to richer experiences for customers and more informed purchasing decisions.

One way for retailers to engage with customers virtually is through live streaming, which involves sharing products with customers via live video. Whether it’s using an iPad to show customers what’s happening in store through a virtual shopping appointment or using Instagram Stories to showcase newly arrived stock.

Virtual reality is another strategy retailers are using to help customers experience products before adding them to their shopping carts. As consumers now need more options to confidently try products before buying, VR technology can be an effective way to improve the overall try-before-you-buy experience.

Blurring the boundaries between sectors

The pandemic has not only accelerated business pivots, but also the cross-industry convergence that is already happening. Three in five customers say they are likely to buy from retailers and restaurants that sell different products than they usually do. For example, the value and meaning of cross-servicing is increasing, such as a restaurant whose food is beloved by locals offering cooking tutorials on Zoom while it was closed due to pandemic restrictions.

Real-time views of store inventory open up new possibilities

From selling on Instagram to opening an online store, retailers are experimenting with various ways to meet the changing needs of customers. Retailers are realizing that control over inventory is the only way they can continue to sell across channels.

More than half of retailers say inventory management is more difficult due to the pandemic. Not only are consumer needs changing, but supply chain issues are slowing down the ordering process, making it harder to determine the exact amount of inventory you need and then communicate that information to customers. To combat this growing complexity, 74% of retailers plan to invest in real-time inventory management software to get clearer information about their stock.

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