How will you use 2024’s retail trends this year?

As we recover from a challenging final quarter of 2023, we are promised that 2024 will be a much brighter year for consumer spending and the retail industry.

Let's take a look at some of the suggested trends that will emerge in retail this year.

Home & DIY

Home and DIY retailers are expected to face another challenging year ahead. This comes as the market continues to struggle with the aftermath of the pandemic home improvement boom. Consumers spent over £110.3 billion on home improvements, a 30% increase compared to the previous year. The effects of this boom will continue to have a significant impact on the industry, posing various challenges for retailers in this sector. However, not all home brands will suffer. Reports from the end of 2023 showed that IKEA and department stores like John Lewis saw increased spending in the second part of the year after making some commercial changes. Retailers will need to assess their offering, customer profile, and position within the industry to thrive in 2024.

Seasonless Fashion

Last year's unpredictable weather, coupled with budget and environmentally-conscious shoppers, will make "seasonless" fashion one of the leading trends this year. The unusually mild end of the year and more conscious shopping decisions resulted in a much lower demand for autumn/winter products.

This trend is likely to continue this year. Shoppers will continue to invest but will be more mindful of buying products that can be worn throughout the year and in multiple ways, increasing the average "cost-per-wear." Many consumers are now looking at resell platforms before heading directly to the original brands.

Loyalty Programs

Last year saw a record number of loyalty schemes launched, with retailers revamping existing schemes or creating new ones to attract new consumers to their brands.

As consumer spending continues to be tight, shoppers will be looking for ways to make their money go further. Personalized offers and discounts based on previous spending habits are likely to make loyalty programs successful in 2024. Despite concerns of this becoming a "coupon catastrophe," at Strut, we believe that savvy retailers can differentiate themselves from their competitors by creating loyalty programs that enhance the customer journey, excite and inspire, and make customers feel valued and recognized.

Content Creators Supporting Consumer Decisions

The growth of content creation in relation to retail sales is undeniable. Content creators have found new and inspiring ways to connect consumers to products in a meaningful way, making shopping simpler. In a world with too many options, too much choice, endless scrolling, and retailer noise, content creators have made decision-making much easier, allowing consumers to connect with products through authentic and meaningful connections.

The Strut team encourages retailers to embrace this way of connecting their products to customers in 2024, as it will continue to gain momentum and prove successful. However, we challenge retailers not to rely solely on outsourced creators. It is the job of a great retailer to understand how to connect their products to the desired customers, creating meaningful, emotive, and inspiring connections within the customer journey. Content creators can play a role in this, but we believe it should be rooted in the internal functions of the business and aligned with its "why" and core values.

The Alpha Shoppers...

The next generation of shoppers is on the rise, and retailers need to be aware of their desires versus their needs. These shoppers are seen as well-traveled humanitarians who use their voices and digital platforms to encourage positive change. Retailers should focus on meeting their higher service expectations and providing smooth customer journeys. The Alpha generation has experienced a pandemic, climate crisis, and social isolation (through social media), so they actively search for ways to make their lives happier and easier. Unlike previous generations, Alphas will be more proactive and have higher expectations for the brands they shop with.

Retailers need to seriously consider these factors when building their journeys, products, and marketing strategies. These shoppers represent the immediate future of consumers.

These are just a few of the retail trends we see taking shape in the early part of 2024, but we will continue to keep you up-to-date on emerging ideas which will hit the industry. Join our mailing list to be the first to read the latest journals from the Strut Team.