Published: February 07, 2024 | Updated: February 16, 2024
Read time: 5 minutes
2023 was the year of the resilient consumer. 2024 will continue to see consumers around the globe flexing their resiliency as they define exactly what they want from their favorite brands. See what strategies retailers should take as retail industry trends reflect this shift towards a more customer-centric and digitally driven landscape.
Global retail economy
With many economies seeing prices for products and services starting to shift, consumers may prioritize their spending away from experiences and more towards things, forcing retailers to compete for consumer love as they rebalance priorities.
What are some economic factors impacting the retail industry in 2024?
Inflation will ease in most economies around the world
As inflation cools more than wage inflation, consumer purchasing power should increase
Consumer spending on experiences and things may track more similarly than in the past few years, particularly in real terms
Read the Retail trends to watch in 2024 report to explore how economic factors vary from region to region.
Understanding and connecting with consumers
Consumers will be reprioritizing their spending and engaging with brands through new channels. In response, many retailers will rely on analytics and testing to determine the most effective pricing strategies, promotions and channel investments.
Strategy
How can retailers navigate this trend?
Test new pricing and promotional strategies in a subset of locations or with select customers to determine how to optimize the strategy
Use consumer spending data to inform where to allocate marketing dollars or invest in new stores
Expand, grow and differentiate consumer communications through retail media networks, marketplaces and social commerce channels
Turning consumers into loyal customers
It’s no surprise that consumers today want brands to care about them. As the bar continues to rise in 2024, consumers have grown to feel entitled to certain perks, so retailers will look to embed their offerings into customers’ daily lives and provide an authentic experience.
Strategy
How can retailers navigate this trend?
Provide utility beyond points by making loyalty programs less transactional and more experiential
Explore paid loyalty and subscriptions to engage top customers and create a new revenue stream
Stand out among the competition by deploying gamification tactics to engage consumers
The shopping experience
The lines between online and in-store continue to blur as the consumer will navigate between the two becoming one cohesive and seamless experience that is consistent regardless of the format. The empowered consumer is now looking for the best product at the best prices and are willing to look and wait for the right time and place.
Strategy
How can retailers navigate this trend?
Supplement the online shopping experience with services provided by brick-and-mortar stores and vice versa
Get creative with pricing and promotions across all channels
Adapt store strategies at a moment’s notice as flexibility can create a distinctive customer experience
Evolving ways to pay
As retailing environments evolve and choices in ways to pay expand, retailers and consumers are looking for more seamless, secure and innovative checkout experiences.
Strategy
How can retailers navigate this trend?
Turn to biometrics as a secure, engaging and convenient way for consumers to pay for purchases
Integrate loyalty programs into the checkout system for faster, more tailored offers at purchase
Reduce online cart abandonment by investing in online checkout solutions, such as Click to Pay
To learn how Mastercard is helping brands and retailers with data and insights, personalization and loyalty solutions, and experimentation and consulting, contact your Mastercard representative here.
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