With 2023 being a year of significant transformation post-pandemic, retailers have experienced first-hand trends as a result of how consumers shop and interact with brands.
Here is our look-ahead on the top trends reshaping the shopping experience in 2024:
1. Omnichannel: bridging online and in-store
One of the most pronounced trends continuing to rise is omni-channel retailing.
This approach seamlessly integrates online and in-store experiences, offering customers a cohesive journey across different platforms. Retailers are leveraging technology to provide a unified experience, whether the consumer is shopping from their smartphone or in a physical store.
Almost all consumers now use at least three channels for their purchase journeys, and 75% want seamless omnichannel experiences, but only 25% are satisfied with the retailer experience. The trend will persist well into 2024 as consumers plan to continue using the channels they tried during COVID-19, such as grocery delivery or social commerce.
2. Ethical shopping: a commitment to sustainability
Ethical shopping has taken centre stage, with consumers increasingly prioritising sustainable sourcing, green shipping, and circular retail models.
Retailers are responding to this latest trend by adopting eco-friendly practices and promoting transparency in their supply chains. This shift towards sustainability is not only a moral imperative but also a business strategy, as more consumers align their purchasing decisions with their values.
With mounting efforts to better manage costs and carbon emissions, forward-looking retailers are already reducing mileage from supply chains.
As Europe moves towards circular economies, 35% of retailers are aiming to decrease operating costs by cutting miles from their supplier chains.
3. Experiential retail: beyond transactions
The concept of experiential retail is transforming stores from purely transactional spaces to immersive, experience-driven environments. Retailers are creating unique in-store experiences, offering interactive elements, personalised services, and engaging store designs. This trend in consumer retail emphasises the importance of creating memorable experiences and fostering a deeper connection between the brand and the consumer.
The use of Augmented Reality (AR) and Virtual Reality (VR) technology, such as VR mirrors, interactive window displays, and immersive screens, are already used by retailers to enhance shoppers’ experiences.
In 2024, we will see a bigger push towards experiential payments through self-service experiences: self-checkout machines are enhancing transaction speed with improved network connectivity, digital wallet compatibility, and user-friendly display features. And scan-and-go technology offers a seamless shopping experience by enabling customers to track and pay for items in real time using their phones as they exit the store.
4. AI and machine learning: personalisation at scale
AI and machine learning are revolutionising the retail landscape, offering personalised shopping experiences at an unprecedented scale. These key technology trends in the retail industry enable predictive analytics for inventory and demand forecasting, enhancing efficiency and customer satisfaction.
AI-driven personalisation tailors the shopping experience to individual preferences, making each interaction unique and relevant. With the help of AI, retailers will be able to give their customers the ability to control their shopping experience with their minds in 2024. With AI, retailers will analyse their customers’ purchase histories and preferences to create a personalised profile that is tailored to their needs online and in-store.
5. Localised and community-centric retail
Retailers are increasingly tapping into local artisans, hosting community events, and sponsoring local causes, emphasising localised and community-centric approaches. This trend fosters a sense of community and supports local economies, resonating with consumers who value authenticity and local engagement.
With hyper-personalisation and hyper-localisation, retailers will develop tailored offers for local communities in 2024. They will evolve to play three roles: transactional hubs for immediate consumption, experiential venues, and showrooms that support online sales as fulfilment centres for e-commerce.
6. Contactless and alternative payments: the new norm
The growth of contactless and alternative payment methods, such as mobile wallets and cryptocurrencies, reflects the evolving preferences of consumers. Offering a range of digital payment options in 2024 will be crucial as customers seek convenience, security, and flexibility in their transactions.
A glimpse into the future of retail
Stay tuned for the Part 2 of the 2024 trends article as we will explore insights into the latest trends in retail e-commerce, retail innovation, and how technology is continuing to transform the retail industry in 2024 and beyond.
As you will see in the next wave of trends in our upcoming article, it’s clear that the retail landscape will continue to evolve, driven by technology, sustainability, and a deeper understanding of consumer needs.
Working with retailers is an area we excel in, and we would love to show how we can power your payments with Trust Payments. Contact us to learn more and talk to our expert team.
