As retail brands brace cautiously for another year of economic uncertainty and course correction, there are reasons for optimism, beyond the sector’s general resilience and a “hope for the best” outlook.
While we’re all carefully monitoring and digesting ongoing talk of recession, supply chain disruption, workforce shortages, and consumer fears (phew!), we see genuine opportunities with some emerging trends and we’re working to ensure that TPH Global Solutions® clients take advantage of them.
Below is an overview of this and more of what we are reading and hearing.
Consumer Spending to Remain Consistent
Americans are likely to keep their spending consistent this year. While there is pressure at every level to keep costs and pricing under control, fears of dramatic consumer austerity may be overblown.
Consumers Still Crave In-Store Shopping Experiences
Despite COVID’s acceleration of e-commerce transactions, shoppers (even bargain hunters) still prefer brick and mortar experiences in many cases. The trend is so strong that even digital brands are taking notice and devising ways to be part of in-person retail experiences.
Big Box Retailers Focusing on Emerging Brands & Demographics
Big-box retailers are becoming more attractive to smaller-scale brands. Walmart has recently announced its focus on indie beauty brands in an effort to embrace younger consumers and keep a pulse on their buying habits. Beauty products have the added advantage of generating customers who come back again and again.
Jump the Pricing Line & Align Your Logistics
Major retailers will most likely lean on their suppliers to cut prices to minimize the effects of inflation. While solid supply chain logistics are an edge in any market, this is no time to let inefficiencies go overlooked. Optimized logistics processes and supply chain options put you in the strongest possible position when negotiating with retail buyers.
Costco Sales Growing (Especially In-Store)
While the possibility of consumer spending cuts cannot be ignored, inflation fears do not seem to have kept anybody out of Costco. The big box giant saw increased net sales for the retail month of January.
More Sales Means More Stores for Sam’s Club
Sam’s Club has seen unprecedented growth in both memberships and sales and plans to open 30 new stores in the USA in the next five years. As one of the most aggressive marketing initiatives by the company in years, it signals more opportunities for brands to expand alongside them in sales.
Maximize Your Retail Opportunities with an Experienced Partner
TPH Global Solutions makes it easy for you to get your products to market, with retail strategies that get you to the finish line—happy customers, happy retailers, repeat orders!—by focusing on the details from the very beginning.
Long before your product goes into the shopping cart, you’ve got to make the sale to the toughest audience in retail: the buyer. Our support helps brands put in place the practices that will demonstrate to the retail buyer that you have your processes buttoned down, from a thorough understanding of the retailer requirements to a supply chain strategy that ensures on-time, undamaged and on-budget delivery.
For help in managing your retailer display and packaging requirements, supply chain challenges and the overall success of your program, reach out today and learn why so many retail brands rely on our expertise.
Looking forward to your success in 2023!