Acosta Group, a business services provider with a focus on marketing, retail and foodservice, has announced its 2024 retail predictions in a market that is still subject to the effects of larger social, demographic and economic dynamics that have made consumers more conscious of how they shop.
The predictions fall under five themes:
- Driving Growth Will Take Standout Creative Measure. Strong promotions will be key in another year of cautious spending, channel shifting, private label purchasing and value messaging. Circumstances will enhance the value of retail media networks that deliver measurable ROI as they expedite promotions.
- Seamless Retail Redefines Shopper Delight. Making shopping easier, with less friction and more opportunity to shop anywhere, anytime for anything, will become more important as retailers invest in both store and digital upgrades to meet shopper demands.
- AI Propels Retail Efficiency and Shopper Experience. Successful AI applications will drive efficiencies that improve productivity as they benefit shoppers with an enhanced, more customized shopping experience. As such, retailers targeting Gen Z, the generation most comfortable with artificial intelligence, can use AI to improve the shopping experience for younger consumers via personalized recommendations and rewards.
- Shoppers Prioritize What’s NOT In Their Products. Clean label trend in the U.S. sparked by the passing of The California Food Safety Act of 2023, which takes effect in January 2027, will increase interest in product ingredients.
- Retailers Turn Up The Heat To Attract Diners. Retailers will compete more intensely with restaurants and C-stores in edible innovation, further blurring the line between the channels and making affordable convenience meals and snacks a more important factor in drawing consumer traffic.
“Consumers will respond to bold, creative promotions that provide them enriched value,” said Kathy Risch, senior vp, thought leadership and shopper insights, at the Acosta Group. “Smart retailers, brands, delivery services and restaurants are stepping up to create promotions that resonate.”
Colin Stewart, Acosta Group executive vp, business intelligence, noted, “While we expect 2024 to remain as complex as 2023, brands and retailers will have opportunities to better understand and meet the evolving demands of their customers, securing meaningful growth for their businesses.”
