Over the past year, the pandemic has caused significant changes in consumer behavior and accelerated trends that were already in motion.
This week, we’ll explore the latest insights on consumer spending and trends, as well as take a closer look at the recent fall of Bed Bath & Beyond and why it may not be a red flag for the retail industry.
THIS WEEK’S HIGHLIGHTS
- Understanding the 2023 Consumer: Where customers are drawing the line.
Fall from grace: How a loss of supplier trust crumbled the retail giant.
Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.
FOOT TRAFFIC TRENDS
Industry insights so you can convert your foot traffic into more sales.
Understanding the 2023 Consumer
The pandemic caused some changes in consumer behavior, such as a preference for online shopping and buying goods instead of services. However, data now suggests that these changes were due to unique circumstances and that consumers have shifted back to their pre-pandemic behaviors.
Experts suggest that the trends that are here to stay were set in motion before the pandemic and accelerated throughout. A discussion at NRF’s State of Retail & the Consumer event yielded three key points to help retailers better connect with consumers in 2023 and beyond.
The main message from the event was that consumers are accepting the new omnichannel approach that combines online and offline experiences. The concept of the omnichannel digital store will continue, and it will become increasingly challenging to differentiate between online and offline purchasing behaviors.
The end of Bed Bath and Beyond
At first glance, the closing of retail giants Bed Bed and Beyond and Tuesday Morning may look like a major warning sign for what’s to come. But when you take a closer look, you quickly realize they are products of their own mistakes.
In the years leading up to Bed Bath and Beyond’s bankruptcy, the retailer alienated major vendors by betting on private labels, and, when that didn’t work, stock buybacks.
As for Tuesday Morning, they filed in February for their second bankruptcy in three years. Its first bankruptcy was filed in May 2020 during the COVID pandemic. While many retailers switched to omnichannel, Tuesday morning continued to exclusively sell in their brick and mortar stores.
Click HERE to read more about the fall of BBB.