Madison Marquette: Retail Will Continue to Evolve Post-Pandemic
Retail proved resilient through the pandemic and will continue to evolve in the post-pandemic era with ongoing digital transformation, hybridization and the ability to turn further disruption into opportunity in the face of economic uncertainty, says Madison Marquette. The firm’s State of Retail Q1 2023 presents its top five retail predictions for 2023 and an overview of retail’s transformation, shifting consumer behaviors and category trends.
The trends include the following:
Financial positions create divergent consumer spending behaviors. Among other shifts, Madison Marquette sees discretionary spending shifting from want to need.
Physical stores serve as digital billboards in the hybridization of retail. “In addition to omnichannel fulfillment hubs and experience centers, physical stores now serve as digital billboards.”
Retailers focus on the path to profitability to secure stability and future growth. “Contraction and recalibration may be necessary to secure stability and future growth following the pandemic boom.”
Digital transformation shifts focus from customer-centric to operational efficiency. “Consumer-centric technology will be paramount to protect the customer experience and capture sales, but retailers will shift tech stack investments to operational efficiency to increase profitability.”
Retail cycles from apocalypse to the favored sector among investors. “Deal volume fell in 2H 2022 across all sectors, but retail was the only sector to post annual growth. Retail investment will outpace other sectors in 2H 2023 as rates normalize and the market recalibrates.”
The content is from a formal presentation given by Madison Marquette’s head of retail research, Meghann Martindale. The information will be updated periodically and a recap of the results will be published in the fourth quarter.