2023 Retail trends: Navigating uncertain hiring needs

In 2020, 75% of US consumers changed their buying habits thanks to the pandemic, with most turning to e-commerce for their weekly errands and to purchase their favorite products. In 2023, economic experts predict American consumers will change their behavior yet again, returning to brick-and-mortar stores after two years of shopping online. According to a new survey, almost three in four buyers say they’ll shop in-store just as often or more than before the pandemic as major retailers like Kohl’s and Dollar General plan on opening more physical stores this year.

In response, retailers will need to be flexible to meet consumers where they want to shop, which means changing strategy from e-commerce to in-store and omnichannel shopping. And while we will see a return to brick-and-mortar this year as a top retail industry trend, some pandemic-era behaviors are here to stay, including a reliance on BOPIS (buy online pickup in-store) models and the need for quick fulfillment and delivery.

To thrive in 2023, shops will need to ensure their physical locations are equipped to handle consumer needs, whether they shop online or offline. This means investing in distribution centers that can keep up with the volume of BOPIS orders as well as training in-store customer service teams to provide engaging service offline.

But as 70% of job openings in retail remain unfulfilled, many companies remain unprepared for this change to the retail industry. Adecco can help provide flexible staffing solutions to scale up warehousing employees and customer service representatives to keep the American consumer happy in 2023.

Technology will shape more 2023 retail trends

In-store shopping isn’t the only change coming to the retail sector this year. New technology is continually being integrated into shopping experiences, creating a “digital disruption” in the industry and shaping the major 2023 retail trends. Here are the retail industry trends your business needs to look out for this year:

AI and chatbots provide 24/7 customer service

Amazon’s Alexa and Apple’s Siri are always ready to answer any question at any time. Now, thanks to their popularity, consumers expect the same from every business’ customer service department. By offering chatbots or robotic AI assistants on your website your company can deliver “always-on” customer service, allowing for interactions with multiple customers on multiple channels without increasing your headcount.

Chatbots have exploded in popularity recently, so much so that Gartner predicts they will become the primary customer service channel by 2027. With advantages like cost cutting, the ability to collect feedback, and multilingual support, it’s not hard to see why AI assistants are one of the top 2023 retail trends.

While chatbots can handle frequently asked questions and provide easily searched information, it doesn’t replace the need for human customer service representatives. What it allows for, however, is for these representatives to focus on providing in-depth care for clients with greater needs and for representatives to provide friendlier service without the stress of phones ringing off the hook. Use chatbots as an opportunity to both cut down on wait times for customers and to increase the level of attention human representatives can deliver.

The rise of omnichannel shopping and mobile applications

With more brick-and-mortar stores set to open in 2023 and new technologies changing the way we shop online we’ll see buyers leveraging both. According to Harvard Business Review, 73% of Americans say they prefer to combine online and in-person shopping experiences, in what experts are deeming “omnichannel shopping.” The most common behaviors include reading reviews and price checking online and then purchasing an item in-store, which can easily be facilitated via mobile applications.

To stay on top of the retail industry trends for 2023 companies will need to integrate both online and offline experiences and have them flow seamlessly. This may include expanding their warehouses as more consumers are buying online and collecting in-store, preparing retail assistants on how to use the store’s mobile app to check on product stock, and diligently updating their app so buyers can read the latest reviews when deciding between in-store.

AR will become commonplace

AR (augmented reality) is taking the idea of “try before you buy” to a new level in 2023. AR provides an immersive customer experience, allowing the buyer to interact with a product in their own homes.  Unlike VR which requires expensive headsets, AR only requires a cellphone, something that 97% of Americans already have.

IKEA developed a dedicated app utilizing AR (named IKEA Place) which allows users to see how furniture will fit into their homes. Warby Parker’s app allows consumers to “try on” different types of glasses to see what suits their face best and then order online. Both companies have seen positive growth from leveraging AR, seeing a 90% conversion rate from using the technology. On top of that, one study revealed that almost half of American consumers want to see more AR tools when shopping.

Technology will facilitate in-store appointment booking

To appeal to omnichannel shoppers more retailers are offering in-store appointments for personalized experiences and dedicated customer care. In addition to offering appointments to collect online purchases in-store, more and more companies are leveraging in-store appointments to offer white glove customer service.

Through a store’s website, customers can book in-store shopping experiences such as eyebrow waxing at a cosmetics store and having personal assistants while shopping at a clothing store. This also allows retail workers to have a more intimate experience with the shoppers, providing personal recommendations and upselling related products.

Adecco can help

The retail industry is changing. Fast. In order to keep up businesses will need to be flexible to provide the best service both in-store and virtually. From making sure warehouses are stocked to keep up with online orders to making sure you’re leveraging technology to provide the best-in-class customer service, Adecco has the resources to help you quickly adapt to the newest consumer trends.

With more than one-third of our business in the retail and consumer products industry, we have a dedicated team of retail experts actively researching consumer trends and behaviors. Contact us today to see how we can help your business stay ahead of emerging retail industry trends for 2023 and beyond.