When consumers are going to spend less, they usually look for alternatives that are less expensive and steer away from private labels
In the digital world we live in, the retail industry has gained massive momentum, and Covid has furthermore boosted the efforts of retailers. Several small companies are still struggling to keep up with the ever-changing dynamics, and economies are also trying their best to find their footing in the segment. This year has particularly been very bad for retailers as new challenges have emerged like record-high inflation, change in consumer behavior, and supply chain bottlenecks.
The high inflation that retailers are now facing is mainly due to the supply chain bottleneck, and prices are continuing to skyrocket as consumers are looking for more value to make purchase decisions. When consumers are going to spend less, they usually look for alternatives that are less expensive and steer away from private labels. They also tend to leave the upscale supermarkets for online retailers and discounted selling. The discount trend is expected to grow in 2022 massively, and so far, it has been the fastest-growing trend. Value-driven buying has gained massive traction following the global financial crisis. Pressure from an increase in price is encouraging buyers to go for cheaper alternatives. Meanwhile, retail investors are all set to increase their focus on AR and VR.