Retail

Rising omnichannel shopping reshapes UK retail landscape

28 Jun '23

2 min read

Pic: Shutterstock/New Africa

Insights

The UK retail landscape is evolving, with trends including increased omnichannel shopping, a resurgence in in-person buying, and mobile commerce growth, mostly among young consumers.
'Buy Now, Pay Later' usage is up across all age groups.
Retailers are advised to focus on utility, quality, and longevity in offerings, and utilise AI for back-end processes.

Shifting consumer preferences are reshaping the UK retail landscape, as per industry data. Emerging trends underscore the value of omnichannel shopping, with consumers spending 2.3 times more on pre-orders than the average online purchase. In-person shopping has returned to pre-pandemic levels, fuelled by social influencers who promote new and unique in-store experiences.

Mobile commerce continues to grow, particularly among younger consumers, with 82 per cent of online transactions from millennials and Gen Z shoppers carried out on mobile devices in the past year, a 238 per cent increase since 2020, according to data compiled by Square and Clearpay.

The trend towards ‘Buy Now, Pay Later’ (BNPL) continues to expand, showing significant year-on-year growth across all age demographics. Clearpay has seen a 286 per cent rise in orders from Gen X shoppers and a 20 per cent increase from baby boomers.

To keep up with these evolving trends, retailers are advised to focus on a mix of offerings centred around utility, quality, and longevity. This is supported by a 72 per cent increase in Clearpay sales of designer fashion items since 2021, as younger consumers seek flexible payment methods. Quiet luxury is also on the rise, influenced by the return to the office and a demand for sophisticated staple workwear items.

To navigate the various changes, businesses need to optimise staff availability and utilise AI-powered tools to automate back-end processes. Automated messaging and marketing software can improve customer relations and drive traffic. By creating exceptional shopping experiences, retailers can increase brand discoverability and leave a lasting impression on customers.

Fibre2Fashion News Desk (NB)

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