Big in 2023: The trends the CEOs of Primark, Iceland and Pets at Home are backing

The last few years has brought pandemic challenges, economic uncertainty, and soaring inflation.

As we enter the New Year, Retail Gazette asks the sector’s leaders what big trends they think will shape retail in 2023.

Richard Walker, managing director, Iceland

Iceland boss Richard Walker anticipates that the biggest trend in the year ahead will be value.

He says: “As the cost-of-living crisis continues to be felt up and down the country, customers need to know they are getting value for their money when choosing where to do their weekly shop.

“Providing the best quality food for the lowest cost will remain a huge focus point for Iceland in the year ahead.”

Paul Marchant, CEO, Primark

Primark boss Paul Marchant agrees with Walker and says customers will be to be looking for value for money more than ever this year, particularly as higher energy bills hit in the New Year.

“We are doing everything we can to help our customers through this tough time by keeping our prices low and making sure we are the best value on the high street,” he says.

This comes after Primark said in September that it would not introduce further price rises in 2023 “beyond those already actions and planned” to support its affordable position in the market.

This was despite the retailer previously saying it would make “selective” rises in its current seasonal range.

Thierry Garnier, CEO, Kingfisher

Kingfisher chief executive Thierry Garnier believes that the focus on energy efficiency will continue into 2023 and beyond.

“Rising energy bills have led to a surge in customer interest,” he says. “The UK’s housing is among the least energy-efficient in Europe and our research found that those living in inefficient homes are paying on average £448 more per year for their energy.

“With bills set to rise further from next April, our focus is on making energy efficiency improvements as easy and affordable as possible for our customers.”

Garnier also expects the rise of online marketplaces, which he says are growing twice as fast as first-party ecommerce, to continue as a trend this year.

In March last year, Kingfisher launched the first marketplace at its B&Q brand, which it has rolled out in Spain and Portugal and have had “a positive early response from customers”, according to Garnier.

John Edgar, CEO, Fenwick

Fenwick boss John Edgar believes that the resurgence of the high street will be a big trend in 2023.

He says: “Many high streets will continue to recover, proving that the high street is vital to communities.

“Although online will still be the big growth engine for our business, the majority of shopping for us and the rest of retail is still done in physical stores.”

Edgar predicts that businesses will look to make the online model more efficient but fundamentally believes that as people settle into new patterns of commuting, working and shopping, many city centres across the country are set for a new lease of life.

“As a company embedded in city centres across the country, Fenwick is in a great position to take advantage of these changes and continue to adapt to ensure we can provide local shoppers with the products and services they can’t find elsewhere locally,” he says.

“We are continuously adding new brands to our line-up and constantly refreshing our brand mix to ensure there is something new for our customers to discover.

“We’ll also be continuing to support local economies and regeneration around our stores through building partnerships with smaller producers and suppliers and working closely with local councils.”

Lyssa McGowan, CEO, Pets at Home

Pets at Home boss Lyssa McGowan is another that is putting her focus into being as affordable as possible.

“Last year was incredibly unpredictable with a lot of uncertainty and I do not think that is going to change this year.

“Cost of living will remain front of mind for significant parts of the population throughout 2023, so value for money will continue to be critical for consumers.

“At Pets at Home, we remain laser focused on ensuring that pet care is affordable and accessible for all budgets, and we will never let price be a reason not to shop with us.”

However, McGowan believes that in these challenging times, the “important bond” consumers have with their pets becomes really clear.

“Buying your pet an affordable treat or gift can be a real pick-me-up, and we’ve noticed that this is on the rise again,” she says.

Will Crumbie, chief executive, FatFace

FatFace CEO Will Crumbie says consumer spending is going to become even harder to predict this year. He expects it to result in retailers tracking spending habits and sentiment even more closely.

“Only time will tell how much consumer decision making and spending levels will be impacted over the next 12 months,” he tells Retail Gazette.

“Despite this, our job remains simple; to design high quality clothing for all ages that our customers love and want to buy. If we do that, we will be in the best place to thrive in any market.”

Maria Hollins, managing director, Ann Summers

Ann Summers managing director Maria Hollins believes that customers will be more price conscious this year and will be looking for “versatility in their purchases”.

She also expects stores to be more important than ever.

“Post-pandemic consumers will be more engaged with the store experience. This plays well to our exceptional service and advice,” she says.

Nathan Williams, chief operating officer, Mamas & Papas

Mamas & Papas COO Nathan Williams says: “Few are expecting 2023 to be a normal year. Once the festive trading high wears off for the industry, the big themes of late last year, namely inflation, interest rates and energy bills, will likely continue for at least the first half of the year.

“This puts a level of uncertainty and therefore caution into consumers’ minds and will undoubtedly hit those operating in the more discretionary areas of the sector hardest,” he says.

“One of the biggest challenges for retailers is how to sustain or grow trading volumes in this uncertain environment whilst maintaining some price integrity and preserving margin.

“Certainly those with higher levels of inventory than planned will have to balance margin with generating demand to clear down high stocks.”

Despite concerns, Williams expects the second half of the year to brighten as some of the uncertainty starts to lift and inflation eases off, “hopefully putting wind in the sales of consumers, and some green shoots emerging in the UK economy into the summer”.

Niran Chana, chief commercial officer, Gymshark

Gymshark’s Chana believes a laser focus on their product offer and the customer proposition will be the big trend from retailers in the year ahead.

He says: “Retailers must remove decision paralysis in a market where obtaining share of wallet will be difficult, therefore the catalogue, customer journey and after-sales experience must be seamless.”

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