Retail has come through major changes over the last three years. COVID-19 has changed consumer behavior, forcing them to use online shopping more actively. Amazon's net sales have increased by 38% compared to the previous year. Continuous development of e-commerce, social networks, and entertainment platforms is influencing customer preferences and changing their purchasing habits.

In 2022, the War in Ukraine, inflation, and possible deterioration of economic conditions couldn’t but affect manufacturers, suppliers, and end sellers all over the world. That’s why 2024 will show curious tendencies in retail development. They will show up differently in various markets, but the key elements will have an impact on the entire industry. Read more and discover the trends that are already gaining momentum and will remain relevant in 2024!

Trend #1. Communication strategies and community formation around the brand
Retailers are gradually shifting from dealing with separate buyers to selling to their audience. It is both a challenge and a new opportunity at the same time. Brands must stay active on all social networks, monitor customer relations dynamics, and provide them with the value they can never get from online shopping.

Trend #2. Understanding the needs of low-budget customers
The decline in purchasing power is forcing middle-income people to cut back on spending. Retails must consider it and prioritize their pricing. Increased prices and the burden of expenses laid upon customers is not an option. They can always find a cheaper alternative. The answer is to adapt to different customers, optimize chain supplies, and seek new solutions to make great offers without losing income.

Trend #3. Retaining regular customers
It is always cheaper to retain loyal clients than to engage new ones. Loyalty programs and personalized offers based on data from various sources will bring fruit.

Trend #4. Personalized shopping experience
Customers want to receive selected recommendations on the products they often buy or are interested in. They are also looking for personalized offers and live communication in problematic situations. Data from various channels and AI can help retailers with that.

Trend #5. Highly convenient omnichannel shopping
Omnichannel shopping allows customers to interact with the brand through numerous online and offline points of interaction, such as physical stores, websites, apps, social networks, etc. According to
Insider Intelligence, modern shopping is like a journey between a physical store and the Internet. People can start searching in one place and make a purchase in another.

Source: Insider Intelligence.

Retailers need to know where their audiences come across the products, where they search for information about them, and where they make purchases. Even if these are different channels.

Modern consumers are in a constant hurry and want to spend as little time on shopping as possible. That’s why the retailer’s task is to make it fast and easy. With e-commerce being a main competitor of physical stores, they need to exceed customer expectations. Otherwise, companies risk losing customers who will find more convenient options. What can retailers do to compete with online stores? They need to provide buyers with:
- convenient websites and mobile apps with personalized offers;
- multiple delivery [fast if possible] and pick-up options;
- simple ordering and purchasing princess [online, in-store, BOPIS, etc.];
- multiple payment options [bank cards, cash, bonuses, using QR-code];
- easy return through various channels.

This will provide customers with a seamless shopping experience — in brick-and-mortar stores and online [website or app] — and demonstrate that you care about your customers' needs.

Trend #6. Increasing social commerce
According to McKinsey analysts, social commerce is the future of customer interaction with brands. First in Chinese, the social media shopping boom has begun to grow rapidly in the US. According to Insider Intelligence, US retail social commerce sales will total $82.82 billion in 2025.

Source: Insider Intelligence.

Trend #7. Audio ads and interactive solutions
Physical stores are the points of contact with customers and require innovative solutions to attract customers’ attention. It can be achieved through audio advertising and digital solutions.

According to the Dentsu research, audio advertising [including podcasts, radio, and music in retail spaces] attracts more attention than other advertising tools:
- the average attentive seconds per (000) APM for audio advertising is 10,126 [Dentsu norms are 6,501 APM];
- 41% of audio ads generated correct brand recall.

Digital elements — sensor screens, video walls, digital screens with dynamic ads, Lift & Learn systems, etc. — gain popularity. They draw attention to goods, present products in an interesting way, increase customer service, affect the decision-making process, and transform physical stores into a world of impressions.

The main tendency for retail in 2024 is customer satisfaction. Though you cannot catch up with all trends, focusing on key tendencies will help capture new opportunities, form successful sales strategies, adjust them if needed, and leave your competitors behind.