In 2023, the cost-of-living crisis persisted, weighed down by soaring inflation and economic uncertainty.
As we enter the New Year, Retail Gazette asks the sector’s leaders what big trends they think will shape retail in 2024.
Paul Marchant, CEO, Primark
Inflation may be easing, however, Primark boss Marchant believes that value will remain top priority for customers and he says the chain is “well placed to meet this demand”.
The Primark chief also predicts we will see “an accelerated behavioural shift following a difficult few years, with people looking to socialise, celebrate and go on long awaited holidays”.
He believes that high street retailers have an opportunity to prosper but need to give shoppers a reason to come out and shop.
“The move back towards bricks-and-mortar shopping will continue and retailers need to give customers a reason to visit their local high streets and spend more time there with their friends and loved ones,” he says.
Simon Comins, CCO, Superdrug
Superdrug chief commercial officer Simon Comins says “it will be even more important for retailers to listen to their customers and prioritise customer experience to retain their loyalty and custom” in 2024.
“We’ll continue to see consumers embracing those ‘treat yourself’ moments and turning to wellness and beauty as a form of escapism and a way to express themselves, with TikTok remaining the place to go for beauty hacks, inspiration, and the latest trends.”
He adds that this also means that consumers are demanding more than just products from brands.
“They are craving more elevated and personalised experiences and we really saw this at our Superdrug Presents event last year and expect shoppers to want more enhanced store experiences, with new experimental concepts that provide fun and engaging experiences on the high-street.”
Matt Hood, managing director, Co-op Food
Co-op’s Matt Hood says he could see the opportunities within the quick commerce channel growing during 2024, as it “continued to become a key pillar of any convenience retailer”.
He says: “With an increasing number of customers valuing the ease, sheer speed and convenience that the on-demand model gives them this is the ultimate in making convenience even more convenient.
“In 2023, Co-op’s share of this market grew to 23% and we have ambitions to quickly grow to over 30% through a focus on both our own Co-op platform and those of our Q Comm partners.”
He continues: “I am confident this retail channel will continue to thrive, as the ‘on demand’ culture within our society becomes almost endemic.”
Richard Walker, executive chairman, Iceland
Iceland executive chairman Richard Walker insists responsible retailing is about “deeds, not words” and that retailers should “forget about trends”.
“2024 needs to be about helping customers meet their budget challenges and taking a stand on the issues that improve the quality of all of our lives” he says.
“For Iceland and The Food Warehouse this means putting people first. I’m going to be spending even more time in our stores in 2024 to meet customers and colleagues and hear more from them first-hand, as they guide our compass as a retailer.
He adds: “We, like all retailers, have a long way to go, but we have already listened when it comes to bringing greater access to affordable infant formula and through our work with the Iceland Food Club.
“In 2024, we’ll continue to strive to understand customer concerns and follow them with firm actions.”
Will Crumbie, CEO, FatFace
FatFace boss Will Crumbie believes “newness and innovation” will grow in importance over the year, adding that the fashion retailer’s designers are very excited about the leather trend and how they can bring this into everyday staples this year.
“It is an interesting challenge because as one of the biggest B Corp-certified companies in the UK, we have to think about how we do that with care.”
Other trends the business is expecting this year include handcrafted designs, upcycling and repair, which are driven by customers seeking unique designs while extending the life of their most loved pieces.
Versatility of clothing is another big trend that Crumbie flags.
“We’ve learned the importance of being versatile in the ranges that we offer, particularly in the transitional periods such as spring and autumn. Categories such as fleece, jersey and knitwear will continue to grow as they are so versatile, and customers can see great value in the cost per wear,” he says.
Gavin Peck, CEO, The Works
The Works CEO Gavin Peck believes that the trend seen over Christmas of consumers shopping later as they remain cautious over spending could spill over into other big events.
“It’s possible that this delayed Christmas shopping could translate into other seasonal events too, meaning late surges around Valentine’s Day, Easter and Back to School,” he says.
Another trend seen over the golden quarter – discounting – is also expected to remain prevalent in 2024.
Peck adds: “Across the sector more broadly, we have seen high levels of discounting since the autumn, including over an extended Black Friday period, throughout Christmas and into the January sale period.
“Retailers will have to balance this increased promotional activity with rising cost pressures such as the recently announced increase to National Minimum Wage and business rates.”
Jo Whitfield, CEO, Matalan
Similarly, Matalan chief executive Jo Whitfield says that savvy shoppers will continue “actively searching for the best deals” throughout 2024.
She says: “There are reasons to feel a bit more optimistic as we begin 2024, with slowing inflation and savings starting to be passed on to consumers, but there’s no hiding from the fact that this year is still going to be financially tough for many shoppers.
As such, Whitfield explains: “We’ll be even more focused this year on providing our Matalan families with greater choice, better style and high-quality products at great prices.
“That’s why we began this year with an announcement that marks yet more progress in Matalan putting our families first. We invested £35m to reduce the prices of over 700 everyday essentials and favourites by, on average, 15%.”
Whitfield notes that winning over shoppers will be much harder in 2024.
She says: “With families juggling all these demands on their time and finances, choice also means more options around how and when they shop with us – whether they’re visiting in-store, online or on our app.
“Retailers need to make that shopping experience easy, seamless, and enjoyable. To get that right, it’s about listening hard to customers and front-line colleagues to deeply understand what they want and then use that insight to consistently serve them better.”
Darcy Willson-Rymer, CEO, Card Factory
The cost-of-living may continue to weigh on discretionary spend in 2024 but Card Factory CEO Darcy Willson-Rymer says consumers are still keen to acknowledge big milestones.
“Customers are going to continue to want to celebrate all of their life moments, despite the challenging environment, and people are going to continue to celebrate birthdays, anniversaries and so on,” he says.
Willson-Rymer adds that “value for money is as important as ever” with shoppers looking to make their money stretch further even for big occasions.
Vanessa Spence, senior creative director, Asos
Asos’ Vanessa Spence says TikTok and social media will continue to influence the online fashion giant’s product offer in 2024.
It will seek to amplify stories from the catwalk such as Chanel’s most-watched SS24 show, which drove the trend to more sophisticated dressing.
In terms of fashion trends, Spence believes the 90s obsessions “shows no sign of slowing” and also predicts a “minimal power-dressing slant” for womenswear this year.
Jay Wright, CEO, Virgin Wines
Virgin Wines CEO Jay Wright thinks socialising and drinking at home will remain an important area of consumption, as he expects consumers will try to limit their spending in hospitality venues due to the cost-of-living crisis.
“As part of this, we expect consumers will remain focused on value and quality in equal measure, and so will be influenced by price but also want to get real enjoyment from their discretionary spend, with top quality products and the best customer service and experiences” he explains.
“All of this informs our key priorities for the coming year, with our flagship WineBank deposit scheme for example enabling customers to spread their spending on our exclusive quality wines by saving money each month into their accounts and receiving 20% bonus ‘interest’ on those deposits.”
He adds: “Meanwhile, our leading team of expert wine advisors continues to provide an important and bespoke value-add service to our customers, to ensure they get the most out of their Virgin Wines subscription.”
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