Five retail predictions for 2022
It’s been a tough couple of years, especially in the world of retail. With the pandemic, Brexit, supply chain crisis and more, we’re all craving a little predictability for 2022.
I’m not sure we can promise that, but we can at least try to predict the unpredictability… if that’s even a thing? Here goes.
Photo by Lucrezia Carnelos on Unsplash
1. Conscious consumerism
Customers are moving more and more towards consuming consciously, buying less but buying better. They’re increasingly thinking about the bigger picture and putting deeper thought into how they spend their hard-earned money. Think less fast-fashion (or other fast-retail!) and more intentional purchases.
What this means for your business
This is a big opportunity for small and independent businesses! A move away from high volumes may impact your sales but could genuinely boost your profits. If you buy less stock, you’ll end up selling more at full price and less at discount or markdown. That’s good for your businesses’ bottom line AND for the planet.
2. Messaging matters
Customers are expecting brands to embrace sustainability more than ever, especially with the UK hosting COP26 in 2021. They’re also getting wise to ‘sustainability’ as a buzzword, though, and looking beyond the hype to examine what businesses are actually doing. That’s why you need to think hard about your messaging, telling customers what you’re doing towards sustainability and being transparent.
Big brands are getting on board with this, too. In November, ASOS launched a circular design guidebook in collaboration with the Centre for Sustainable Fashion, London College of Fashion’s research centre. The guidebook details the brand’s strategies for sustainability, including the materials it uses, how it deals with waste and upcycling. It’s intended to help other fashion brands put these strategies into practice and we’re curious to see the impact it might have on the wider industry.
What this means for your business
It’s time to take an honest look at what your brand is doing on this, as well as what more you could do. And then tell people about it, honestly. The UK Government has also introduced the Green Claims Code to tackle greenwashing, so make sure you comply! Check out our sustainability ideas and inspiration, and follow Natalie Binns on Instagram for practical tips that can really help your business.
3. Supply chain fun and games
AW21 was definitely impacted by supply chain issues, leading to all those big discounts as they ended up holding too much stock at the wrong time. The ongoing issues around supply chains aren’t going away. Brexit, the Ever-Given getting wedged in the Suez Canal, lorry driver shortages and Covid-19 all mean we’re in for continuing disruption. In fact, with new Brexit-related paperwork being introduced in the new year, delays at ports might be about to get even worse…
What this means for your business
Many big brands are now ordering their AW22 stock early to make sure they have the stock when they need it, and you can do the same. Get organised now and future you will thank you for it!
4. Rising prices
OK, so prices do tend to go up over time. That’s how inflation works, right? But cost increases are particularly noticeable at the moment. That’s down to a whole muddle of reasons, from supply chain issues to the cost of living and the rising price of cotton.
What this means for your business
This one’s simple enough – it’s time to review your pricing. This is a balance between making sure that your products are priced correctly from a customer perspective, and also for your margin. Always remember that you need to make a profit!
5. USP is more important than ever
Rising prices, conscious consumerism, pressures on disposable income in the UK (thanks, inflation)… you could say it’s a perfect storm for retail. The key to weathering the storm successfully is in focusing on what makes your business unique, special and different from the competition.
What this means for your business
Spend a little time reviewing your unique selling point (USP), your offer and your pricing to make sure they’re right for your customers (and for you!). Focusing on this now and planning ahead will really help your business thrive in 2022, as well as making life a little less stressful.
Set yourself up for a fabulous 2022
Yes, there are tricky times to navigate, but small and independent businesses are fantastic at rising to a challenge! Focus on driving full-price sales and planning for the rest of the year (Valentine’s Day and Easter will be here before you know it) so that you have the right stock at the right time.
Looking back at what happened in Q4 of 2021 will help you start to plan for the year ahead. Sign up for our emails in January to get a free template to help you do exactly that this – and to keep getting practical, actionable tips each and every month.
And above all, a plea to the world of retail. Be kind to us in 2022. Please.
