40 Future Retail Trends to 2030

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 5 minute read

 

What you can get from this report

• We've identified 40 top trends for the retail industry towards the year 2030 to help brands future-proof their businesses in the turbulent years ahead.
• Some trends are already in place while others are still in their infancy. 
• We've then categorised them into four areas and summarised each trend.
• The aim is to provide a handy resource for executives, business owners and investors to be better able to navigate trends and spot key opportunities and threats as we move forwards in these disruptive times.

 

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This report is divided into six main sections:

• Introduction

• Section 1: Consumer Driven Trends

• Section 2: Retail Brand Priorities 

• Section 3: Operational Development

• Section 4: Structural Changes

• Conclusion

 

 

 

Introduction

The retail industry is undergoing significant transformation, driven by changes in consumer behaviour, technology, and the broader economic and geopolitical environment.

In this report, we highlight 40 key trends that will shape the industry towards 2030.

Our aim is to provide a useful resource in the form of a comprehensive summary of key trends that retail brands should be aware of. Here, executives, business owners, and investors can capitalise on many of these themes by spotting opportunities and risks to integrate into strategies aimed at driving growth.

The report will also provide a glimpse into what the industry may look like in the years to come, as many of the trends are still in their infancy, yet to fully impact the sector.

As the retail landscape constantly evolves, retailer brands must be prepared to adapt to changes to stay ahead of the competition. Customer journeys are becoming ever more complex with digital and physical touchpoints often becoming blurred at times.

The expansion of experiential retail and the increased use of artificial intelligence (VR, AR and machine learning) is having a profound impact on the retail industry. This will only increase in time. Arguably, we are at a critical juncture where technology and its application will likely determine those who outperform, versus those who will get left behind.

Retailers that understand and respond appropriately to developments within the industry will be better positioned to weather further disruption. By exploring emerging opportunities, carefully assessing risks and embracing new technologies, retailers can build stronger relationships with customers, drive growth, and ultimately increase profitability. Keeping a keen eye on other trends such as ESG, the circular economy and product rentals will also be critical.

The journey towards 2030 will be fraught with new challenges, but will present key opportunities to seize upon. However, equipped with greater foresight, organisations will be better placed to adapt and survive in a new age of retail.

 

Figure 1 – Retail industry trends quadrant

 

 

Section 1:

 

Consumer Driven Trends

Found in this section are 10 trends that are influenced by consumer behaviour.

Below are 4 of those 10 trends as an example of what you can find in this report.

 

Trend 1: Flight to Value

Consumers are reassessing their relationships with retailers and brands amid a cost-of-living crisis. Shoppers are trading off quality, experience and convenience in exchange for lower costs.

 

Trend 3: Channel Rebalance

Consumers are being encouraged to visit physical locations more to seek out deals and stretch their budgets. Online propositions may weaken as more retailers charge for delivery and returns as consumers avoid charges, wait for refunds and cash use increases while financial constraints restrict over-ordering.

 

Trend 5: Digitalised Customer Journey

There will be a heightened level of expectations regarding digital support throughout the entire customer journey: awareness, research, purchase, fulfilment and returns – accelerated by the impact of the pandemic.

 

Trend 7: Sustainability & Ethical Sourcing

Consumers’ minimum expectations continue to rise as they expect retail brands to adhere to higher standards for ethically and sustainably produced products. Resistance still remains in willingness to pay more.

 

 

These are only four of the ten trends analysed in this section, other trends include:

• Recessionary Behaviours

• Purpose of Stores

• Pre-Loved & Circular Economy

• Virtual Events & Live Streaming

• Social Commerce

• AI Awareness

 

 

 

Section 2:

 

Retail Brand Priorities

This section highlights another 10 trends relating to strategies that retail brands should be focussing on, exploring possibilities in these areas and asking themselves "what does this trend mean for us?".

Below are 4 of those 10 trends as an example of what you can find in this report.

 

Trend 12: Defining a strong value proposition

Brands need to deeply understand pricing power (including price elasticity of demand), customer segmentation (e.g. by profitability), and boost engagement through empathetic cost-of-living-focused communication.

 

Trend 15: Evolving Operating Models

Understanding how businesses will utilise mutually beneficial strategic alliances, how they will consider sacrificing margin in the pursuit of platforms that can grow market share, and leverage the scale of third party investment.

 

Trend 16: Data, Insights & Digitalisation

Being able to understand the return on digital investment and marketing spend in the context of a seamless omnichannel proposition. Also, how businesses need to use data and technology to maximise efficiencies. Understanding the impact, opportunities and threats of AI to your business including predictive analytics, personalisation, and chatbots like Chat GPT.

 

Trend 18: Direct-to-consumer (DTC)

There will continue to be a rise of DTC models with brands becoming closer to shoppers, collecting and leveraging customer data, restricting supply to distributors and taking a digital-first approach to the acquisition of property.

Examples: Nike, Adidas, Dyson, Gymshark, Levi’s, Harry’s, Bloom & Wild

 

 

 

These are only four of the ten trends analysed in this section, other trends include:

• Protecting Profitability & Strengthening Balance Sheets

• Reimagining the Customer Journey

• Digitalised Customer Journey

• Personalisation & Customisation

• Subscription-Based Models

• Labour Shortages

 

 

 

 

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