The Future of Retail 2030: Affordability is front and center to consumers

The road to 2030 is paved with uncertain economic markets, fluctuating employment rates, and waning consumer confidence. Retailers need to prioritize affordability to stay relevant, let alone competitive.

我们的博客系列《 2030年零售业的未来》概述了消费者趋势和必备策略零售商需要理解以保持竞争力，以保持竞争力。随着市场状况快速变化和消费者的喜好，许多零售商都在努力跟上，而落后的风险只会增加。

消费者对负担能力的关注不断增加

Although consumers always have and always will consider a product’s pricing before purchasing, a volatile market is leading more customers to focus on affordability more than ever.Nielsen’s researchinto shopper trends revealed nearly 80% of consumers were consciously monitoring their spending in 2021, up from 50% before 2020.

The budget-driven consumer is reacting to several factors.

Employment fluctuations

2020年和2021年完全改变了“正常”时间的概念。在COVID-19大流行开始时，企业暂时关闭以减慢传染率的速度变化了许多人。生产摊位导致创纪录的失业率。收入有限，必需品的价格点通常比任何其他因素都更重要。尽管失业率降至流行前水平，但经济仍未完全恢复。

Economic uncertainty

In fact, some believe the United States is on the brink of a recession.Forbes reportedresearch indicating the U.S. is already in a recession. The indicators noted include low consumer confidence, artificially high gross domestic product (GDP), and artificially low unemployment.

Consumer confidence is how the common consumer reports feelings about the current economy and their outlook on future income and employment. According to the same Forbes article, consumer confidence dropped a whopping 2.3 points from 2020 to 2021. Consumers also contended with 7% inflation in 2021, indicating consumers’ caution with their dollars will compound in the coming years if inflation continues at the same rate.

Recessions can last for years, so retailers need to prepare for long-lasting shaky economic ground as 2030 approaches.

Retailer influence

Consumer decisions aren’t made based on the economy. Retailers affect shopper behavior in multiple ways. Considering consumers’ desire for more convenient one-stop shopping, retailers are meeting the challenge by offering more variety in one place. Competition is fierce. To lure shoppers, retailers need to be competitive on selection, inventory, and price in an environment with wary spenders with more options about what to buy and where to buy than ever before.

Cost-conscious consumers aren’t only shopping around at local stores. Even big box stores are facing more competition, with Amazon profit increasing by 220% during the pandemic. The ability to purchase goods from multiple independent sellers at price points lower than domestic retailers from the comfort of home is very appealing to today’s consumer. Although pricing strategies vary, Amazon seller softwareJunglescout笔记57% of highly successful sellers sell an array of products at less than $30.

Cost-conscious consumers aren’t only shopping around at local stores anymore. In 2030, consumers will have all the online retailers that are available today, and likely more, offering products at competitive prices.

Preparing cost and margin for the future of retail 2030

Retailers cannot silo their functions. End-to-end visibility from all vantage points within the company is no longer a luxury. It is a necessity.

By connecting key planning teams, retailers can have real-time data informing critical decision-makers. For instance, finance and sales can track category performance to identify areas of risk and opportunity. With this information, leaders can set pricing strategy to stay competitive while protecting margin, even when there are market fluctuations or deviations from performance forecasts.

营销可以对提供最多收入的产品产生更多的需求，供应链可以切换库存水平，以减少剩余的库存和降价。供应链还可以与第三方合作，以确保正确的消费者的正确区域正在进行合适的产品的制造。零售商共同可以无缝地工作，以保持竞争力，韧性和敏捷性，以克服障碍并在出现时抓住机会。

With close end-to-end collaboration, retailers can pass any uncovered cost savings along to today’s budget-conscious consumer.

结束

Very few consumers shop without a budget in mind. Retailers have always considered competitive pricing, but with the expansion of online retailers, cheaper and faster ways for shoppers to get their products, and consumers’ need for affordable items, pricing is more complex than ever.

没有能力连接整个组织的关键功能，零售商将面临多个机会的机会。随着零售迫在眉睫的未来，无法与销售，营销和供应链同步定价的零售商将错过维持或提高利润率的机会，同时为消费者保持竞争力。

In our final blog in our Future of retail 2030 series, we’ll explain consumers’ expectation for hyper-customization during their shopping experiences. From omnichannel interaction to personalized shopping carts, retailers need to find ways to connect with the consumer to build brand loyalty and repeat sales.