A new report released by Barclays ‘The New Retail Reality’ has revealed that more than 8 in 10 of retailers are confident about growth over the next year, despite recent cost of living pressures.
Of the 601 retailers and wholesalers surveyed, 85% of them had a positive outlook on growth next year compared to the last 12 months.
While the report proved that in-store shopping is here to stay in a post-pandemic world with 86% of retailers saying physical stores remain vital to their future plans.
Average visits by customers are nearly three times a week for grocery and just under twice a week for non-grocery, Barclays said.
But a focus on online is still important as 7 out of 10 consumers use the internet to inform how they shop and make savings.
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Online grocery websites have seen an increase of 54% in online traffic, with traffic to non-grocery up by 42% which the report said is driven by a need to make savings with 46% of grocery consumers to look for cheaper ranges, while 41% say they seek out items on offer.
The report also revealed that artificial intelligence, data capture and personalised shopping experiences are at the fore-front of future investments for retailers.
With 93% of retailers saying that harnessing data is key to the future success of their business
Although many still need convincing, with nearly half of consumers (46%) not fully comfortable sharing their information – and only 19% completely comfortable with this prospect.
“This year’s report reveals a strong sense of optimism for the future among retailers; an outlook that may well be tested in the year ahead, but one that reflects an ability to adapt to more challenging economic conditions,” said Barclays Corporate Banking Head of Retail and Wholesale Karen Johnson.
“Significant innovation across the sector has enabled retailers to respond to changes in consumers’ shopping habits amid the rising cost of living.
“In particular, businesses see data as paramount to better understanding consumer behaviour, and they are investing in new technologies, such as Artificial Intelligence (AI), to ensure they are aligned to how and where their customers shop, while simultaneously driving efficiencies across their operations.”
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