With some regularity, experts and observers release summaries of their thoughts and predictions about where the retail industry is heading. We summarize a few prominent predictions here, issued as 2023 came to a close.

In what should be no surprise, technology topics appeared prominently and in various forms. Smart carts and contactless checkout, as well as links to the retail Metaverse, have been widely predicted and anticipated. These options constitute new ways for retailers to engage and interact with consumers. At the forefront of such experiments are familiar retailers like Amazon, but also some new firms and new types of retailers. For example, in addition to “digital native” firms that have only ever existed in digital channels, without any physical presence, some future retailers might emerge as “Meta natives.”

Digital channels of all types accordingly appear poised for continued or greater success, especially in fashion sectors. Companies such as Schein, Allbirds, StitchFix, and Vinted offer widely divergent marketing appeals, but in all cases, consumers can only find them through digital channels. Among all online purchases, clothing represents about 25 percent of sales, and that share appears likely to rise. Thus, these and other digital native retailers seem likely to continue to maintain and even expand their dominance.

Although they have different brand appeals, many of these digital native brands prioritize their low-price positioning, reflecting another global trend that continues to affect retailing. Low price options, along with used and second-hand items (especially in high fashion sectors) persistently enjoy growth and expansion in recent years, and those habits seem likely to remain in place. Another driver of purchases in these channels is the trend of “deconsumerism” or conscious consumption, which prioritizes the reuse of still functional items, for as long as possible. Thus Vinted, a platform for reselling fashion clothing for both adults and children, enjoys substantial market penetration, greater market share than any other such platform, and widely positive brand ratings.

Discussion Questions

1. Using insights you have learned so far in this class, as well as your own personal observations, what are some other trends you expect for retailing in the coming year?
2. How should traditional brick-and-mortar retailers respond to predictions that digital and Meta natives might be more successful in the long run?

Sources: Diane Vanderschelden, “The Retail Figures of Europe’s Fashion Industry: A Deep Dive into the Industry’s Complex Landscape and Future Trends,” Fashion United, December 18, 2023; Editah Patrick, “Innovations Transforming the Global Retail Landscape,” msn.com, December 4, 2023