By Higor Torchia, UK managing director, Vend
2020 is almost here, and if you’re in retail, you’re likely wondering what the next 12 months will bring. For me, there are three key trends to watch.
Payment flexibility will continue to be paramount
Last year we predicted new payment options like ‘buy-now, pay-later’ would grow in popularity. According to Klarna, they surpassed 3 million active users in the UK and 190,000 retail merchants, and saw in-store transactions rise 300% in the first half of 2019. In the coming 12 months expect to see payment flexibility continue to be a key trend in retail. 2.1 billion consumers worldwide are expected to use mobile wallets for payments or money transfers by 2020, so retailers must be proactive in handling consumer demand for app-based payment methods. Offering flexible payments creates shorter lines in stores and a more personalised checkout experience so it’s beneficial for retailers of every size.
Values and social responsibility will be more important than ever
Corporate social responsibility (CSR) is becoming an increasingly popular concept in retail. Retailers are realising that giving back not only makes the world a bit better, it’s also good for business. Clothing company Patagonia is leading the way in CSR, pledging their $10 million USD tax refund to fight environmental causes. Their mission is heartfelt and genuine, and their profits have quadrupled in the last few years. You don’t need to be a corporate giant retailer to make a difference – try creating special products for charity, be conscious of how your products are sourced or manufactured, and include your CSR in your marketing efforts.
We’ll see more private label growth in the retail sector
Lastly, retailers large and small are accelerating their private-label push. This can be a beneficial strategy for retailers in two ways – traditional or premium. Retailers can go down the traditional route and sell their private-label products at a low price and pass the savings on to the consumer. Alternatively, they can go down the premium private label route which is becoming increasingly popular, according to research by NPD. Both are tactics that independents can test, and with the uncertainty around Brexit impacting supply chains and tariffs, now’s a good time for UK retailers to test producing their own products.
Go to vendhq.com/uk/retail-trends-and-predictions to see Vend’s 12 Retail Trends and Predictions for 2020.