Retail Insights Barometer 2023 by Locala:
The New Retail is Rebelling in Response to the Impact of Economic Challenges on Consumer Behavior
Paris, June 29, 2023 – Locala, an ad tech company specialized in geotargeting launches the third edition of its Retail Insights Barometer. Conducted in partnership with the Paris-based research firm Marketing Insights, this retail trend report is based on a survey conducted among a panel of 3,000 Europeans.
Among the 15 trends emerging from this new edition, 3 particularly stand out with similar results across Europe:
1. The economic crisis has a significant impact on consumer buying behavior and retailer strategies.
According to Sandrine Préfaut, Europe Director at Locala, ” Two thirds of European respondents are increasingly focused on budget restriction and “smart & useful” purchases.” 74% of surveyed Europeans believe in buying low-cost products. “We have indeed entered the era of the ‘price war’“, she notes”.
“Price has become the foremost concern for consumers, surpassing quality, choice, and fast delivery” she notes.
This trend, driven by inflationary pressures, encourages retailers to adopt a strategy of “discountization” with price competitiveness as the primary goal.
“For 38% of retailers, committing to low prices is the most effective action to increase their sales,” adds Sandrine Préfaut.
In this context, retailers’ strategies are being disrupted, and the focus is on regaining performance.
2. Profitability models are being overturned, and retailers are streamlining operations by entering a cost battle.
The current economic climate compels companies to invest primarily in supply and technology to control their costs.
After a year in 2022 where warehouse automation and digitalization became the pillars of business operations, companies continue to rely on new technologies to remain competitive, accelerate processes, and reduce errors.
“This trend is reflected in our retailers’ interviews.” A furniture sector advertiser told us, and I quote, ‘We are even more careful in managing cost control on every line'”, explains Sandrine Préfaut.
This cost battle is also expressed through new models aimed at achieving profitable and sustainable growth.
3. The “re” trend is becoming widespread: retailers are adopting new profitable and sustainable models.
Not surprisingly, the purchasing power crisis has given rise to what is known as the “re” trend: reusing, recycling, refurbishing, reselling, or repairing.”
49% of British people state that they are resorting more to second-hand and refurbished products,” notes Amaury Laurentin, Director of Marketing Insights, to illustrate this trend.
While eco-responsible consumption offers a competitive price alternative for consumers, it is also driven by a genuine search for sustainable consumption patterns. “According to our study, 52% of British people believe that we should no longer consume products that lack transparency in their manufacturing cycle,” highlights Sandrine Préfaut.
The COVID period clearly marked the emergence of a “New Retail” and the economic crisis that followed forced the sector to adapt to new consumer behaviors. In the face of the crisis, the New Retail is rebelling.
Locala is the world’s leading commerce media platform, leveraging consumer insights and location data to increase brand awareness, drive consumers to store, and deliver smarter business outcomes. Our proprietary technology enables local advertising and insights at scale, all while meeting the highest user privacy standards in the industry.
Senior Global Communications Manager