March 5, 2025 • 10 mins
Navigating Economic Pressures and Shifting Consumer Behavior in Retail https://multimediaplus.com/navigating-economic-pressures-and-shifting-consumer-behavior-in-retail/
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
(00:00):
Welcome to the deep dive where we try to help you get to the insights that matter most in retail.
(00:04):
And today we're focusing on all those challenges that retail executives are facing, you know, in 2025 and beyond.
Yeah.
It's a lot right now.
It is a lot.
Yeah. Economic volatility. You've got shifting consumer behavior and then of course like this huge digital transformation happening.
So how can retail executives really thrive in this new landscape?
Well, I'm glad you asked that because that's what we're here to deep dive into.
(00:27):
Right.
And we're going to be using this article from multimedia plus called navigating economic pressures and shifting consumer behavior in retail to kind of guide our discussion today.
It's a good one.
It lays out some really compelling arguments.
And I'm very eager to get your take on all this as we kind of go through it.
Absolutely.
I think it's a fantastic article.
It captures a lot of what's going on.
(00:47):
So maybe we can start with something that I know is on all the retail executives minds right now, which is that economic squeeze, the article calls it the new normal.
This increase in operating costs because of this prolonged inflation.
And, you know, it's not going away anytime soon.
No, it's not.
And as a retail executive, you're right in the middle of it all trying to keep prices at a point where your customers can still afford things, but you also protect your margins.
(01:13):
And it's a real balancing act.
It is a delicate dance right now.
Yeah, for sure.
The article mentioned apparel and luxury goods being down while things like groceries and those value focused retailers are seeing an uptake.
It's like people are tightening their belts and retailers have to figure out how to adapt to that.
Yeah.
And it's interesting because it's not just about cutting back.
It's like priorities are shifting and you can see that in the rise of the value conscious consumer.
(01:39):
They're reshaping the whole retail landscape.
I mean, think about dollar stores, off price retailers, warehouse clubs, all of them are doing so well.
And it's putting a ton of pressure on those traditional retailers and the big name brands.
Yeah, they're having to compete on price now.
Right.
And that's not the way that they haven't really had to before.
But it's not enough to just be the cheapest anymore.
Right?
You have to have that extra value proposition.
(02:01):
Absolutely.
And one way that retailers are doing that is through private label brands.
These brands have really changed their image.
You know, they used to be seen as like a lesser alternative.
But now they're becoming major players.
They're really investing in quality and innovation and they're offering things that are comparable to name brands, often at a much lower price.
And this is something that all retail executives should be thinking about.
(02:22):
You know, are you going to partner with these private label brands?
Are you going to try to compete with them or maybe even develop your own?
It's a strategic decision that you just can't ignore.
Yeah, that's a great point.
It really makes you think about how are you responding as a retail executive to this rise in private label brands?
It's a whole new dynamic.
It is a whole new dynamic.
And speaking of new dynamics, let's talk about digital transformation.
(02:44):
This is the big one.
It's not just a nice to have anymore, is it?
It's like you have to do it.
The article really emphasized this need for seamless omni-channel experiences.
Today's consumer expects to be able to shop however they want, whenever they want, wherever they want.
And they want it to be easy.
They do.
And it needs to be easy.
So let me paint a picture.
(03:04):
OK, so you've got a customer and they're on your website, you know, browsing, adding things to their cart.
And then later that day, they decide to go to your physical store to actually see the product in person.
Well, they expect to be able to just seamlessly buy that product in the store with the help of an associate who can see what they were doing online.
OK.
That's the kind of experience that people want now.
(03:26):
They want to know something's in stock.
They want personalized recommendations and they want the checkout process to be super smooth, no matter where they are or how they're shopping.
That's a lot to ask.
And it puts a lot of pressure on retailers to not only have the right technology, but the right workforce to deliver on all of that.
Yeah.
Which brings us to another big piece of all of this.
And that's the employees and making sure they are engaged and informed.
(03:50):
You're so right to highlight that.
The article talks about real time communication, ongoing training, engaging with your associates.
These aren't just buzzwords.
These are things you have to do to succeed in retail today.
For sure.
You think about it.
You've got all these promotions changing all the time.
Pricing strategies, changing product information.
How are your employees supposed to help customers if they don't even know what's going on?
(04:14):
You have to give them the information they need in real time.
It's like giving them superpowers.
I love that.
It's like giving them superpowers.
But it's more than just sharing information.
Imagine a customer walks into a store and they're looking for a specific product, maybe for a special event.
They might need help with sizing or finding an accessory.
Now imagine you have a really well trained employee who knows everything about the products and can not only answer their questions.
(04:40):
But can offer personalized suggestions based on what the customer likes and their needs.
That's how you take a simple transaction and make it a really positive experience.
That's how you create those connections that make people want to come back.
And that brings us back to those employees.
It's a tight job market right now.
And investing in your workforce isn't just about the cost.
It's about attracting and keeping the best people.
(05:02):
It's a huge advantage, especially now.
It makes you think, you know, what are you doing right now to train and develop your employees?
What's working for you in this new environment?
Yeah, it's something we all need to be thinking about for sure.
We've covered so much already.
Economic pressures, consumer behavior changing, digital transformation, employee engagement.
(05:23):
It's a lot.
But I think the main takeaway here is that technology is just one piece of the puzzle.
It really is just one piece.
You're right, the article mentions their own solution, you know, insight.
But we can kind of zoom out and think about it more broadly.
What it comes down to is this holistic approach to retail.
It's about having the right technology, but also the right culture.
You need to value your employees.
(05:45):
You need to empower them to do well.
And everybody needs to have the shared vision for the future.
Yeah, it's about making sure your employees feel like they're part of something bigger, something that matters.
That's how you keep them engaged.
And that's how you create a retail experience that customers will actually remember.
In a world where people have so many options, you need to stand out.
You need to give them a reason to pick you.
(06:06):
And that reason can't just be price or convenience anymore.
It has to be something more, something emotional like an experience.
You're right.
Think about the brands that are doing this well.
They're not just selling stuff.
They're selling a whole lifestyle, a community, a set of values.
They're creating this feeling of belonging.
And they do that by empowering their employees to be like ambassadors for the brand.
(06:31):
To make those personal connections with the customer and create those amazing experiences that go beyond just buying something.
Right.
And how do you go beyond just a transaction?
How do you, as a retail executive, create those moments that make shoppers become loyal customers?
Well, I think it starts with knowing your customer really well.
What do they need?
What do they want?
What are their problems?
What are they looking for when they shop?
(06:52):
Okay.
And once you know that you can start to tailor what you offer and what you say to really connect with them on that emotional level.
Yeah. And you need to make sure that connection is there across all channels.
Yeah.
In the store, online, social media, everywhere.
It all has to be seamless.
They should be able to move between those channels without any issues.
And the experience should be consistent and personalized the whole way through.
(07:16):
It sounds tough, but I think it can be done with the right tech and the right people.
Okay. Let's talk tech.
Mm-hmm.
It's so important for all of this, empowering your workforce, making things more efficient, getting all that data.
But you have to choose the right tools, the ones that really work for what you need and your goals.
Exactly.
Don't just get the newest thing out there.
You have to think about how that technology will actually improve the customer experience, make things more efficient, and help you understand your business better.
(07:44):
And the data is so valuable, especially when you want to create those personalized experiences.
Yeah.
Are you using data to group customers by what they buy and how they act online so you can make better marketing campaigns?
Are you using data to figure out what your customers need and then offer them things they didn't even know they wanted?
That's what data can do for you.
It helps you be proactive instead of just reacting all the time.
(08:06):
It's all about going beyond just selling them something.
It's about building a relationship.
And that relationship needs trust, transparency, and a real desire to give them something of value.
We've talked about all the challenges that retail executives are facing, but we have to remember there's so much opportunity out there.
There's a lot of potential for growth and innovation.
(08:27):
It's a really exciting time for retail.
I agree.
The retailers who are going to do well are the ones who are open to change, who want to try new things, and who are always pushing the limits of what's possible.
They're the ones who are investing in their people using technology in a smart way and building brands that really connect with customers on a deeper level.
They're the ones who are building the future of retail.
(08:49):
And that brings us back to that final thought we want to leave you with in this deep dive.
We've talked about the pressures, the changes, the technology, but it really always comes back to the people.
It does. I want you to think about this for a second.
In a world where customers have more choices than ever, how do you create an experience that's not just another transaction?
How do you make it memorable, meaningful?
(09:10):
So a big question.
It is, but the article kind of hints at the answer.
It emphasizes that insight is a solution.
But the bigger idea is about having that holistic strategy.
Right. It's not enough to just have the best tech or the lowest prices.
No. You need to think about everything.
The technology, the culture, the leadership, and how committed you are to your employees.
(09:32):
You need to empower your team to be more than just people who take orders.
Right.
They are the face of your brand.
They can make or break a customer's experience.
Yeah. It's about creating a culture where people are always learning and growing.
Give them the tools and knowledge to not just meet expectations, but to go above and beyond.
What if your sales associates knew so much about your products and what customers need
(09:54):
that they could figure out what someone wants before they even ask?
Wow.
What if they could give recommendations that felt like a friend-giving advice?
That would be amazing.
That's the kind of experience that makes people loyal to your brand.
It's about more than just the transactions, it's about building a relationship.
Yeah.
And that relationship has to be built on trust, being open and honest,
and really wanting to give the customer something valuable.
(10:16):
I think that's the key to success in the future of retail.
It's not just about keeping up with the changes.
It's about leading the way.
It's about being brave, creative, and truly focused on the customer.
And I think that's a challenge that all retail executives are ready for.
I hope so.
Well, we hope this deep dive gave you some great insights and maybe even some inspiration
to tackle those challenges.
(10:37):
Remember, it's not about just surviving, it's about thriving.
And we think you can absolutely do that.
Thanks for joining us.
Welcome to the deep dive where we try to help you get to the insights that matter most in retail.
(00:04):
And today we're focusing on all those challenges that retail executives are facing, you know, in 2025 and beyond.
Yeah.
It's a lot right now.
It is a lot.
Yeah. Economic volatility. You've got shifting consumer behavior and then of course like this huge digital transformation happening.
So how can retail executives really thrive in this new landscape?
Well, I'm glad you asked that because that's what we're here to deep dive into.
(00:27):
Right.
And we're going to be using this article from multimedia plus called navigating economic pressures and shifting consumer behavior in retail to kind of guide our discussion today.
It's a good one.
It lays out some really compelling arguments.
And I'm very eager to get your take on all this as we kind of go through it.
Absolutely.
I think it's a fantastic article.
It captures a lot of what's going on.
(00:47):
So maybe we can start with something that I know is on all the retail executives minds right now, which is that economic squeeze, the article calls it the new normal.
This increase in operating costs because of this prolonged inflation.
And, you know, it's not going away anytime soon.
No, it's not.
And as a retail executive, you're right in the middle of it all trying to keep prices at a point where your customers can still afford things, but you also protect your margins.
(01:13):
And it's a real balancing act.
It is a delicate dance right now.
Yeah, for sure.
The article mentioned apparel and luxury goods being down while things like groceries and those value focused retailers are seeing an uptake.
It's like people are tightening their belts and retailers have to figure out how to adapt to that.
Yeah.
And it's interesting because it's not just about cutting back.
It's like priorities are shifting and you can see that in the rise of the value conscious consumer.
(01:39):
They're reshaping the whole retail landscape.
I mean, think about dollar stores, off price retailers, warehouse clubs, all of them are doing so well.
And it's putting a ton of pressure on those traditional retailers and the big name brands.
Yeah, they're having to compete on price now.
Right.
And that's not the way that they haven't really had to before.
But it's not enough to just be the cheapest anymore.
Right?
You have to have that extra value proposition.
(02:01):
Absolutely.
And one way that retailers are doing that is through private label brands.
These brands have really changed their image.
You know, they used to be seen as like a lesser alternative.
But now they're becoming major players.
They're really investing in quality and innovation and they're offering things that are comparable to name brands, often at a much lower price.
And this is something that all retail executives should be thinking about.
(02:22):
You know, are you going to partner with these private label brands?
Are you going to try to compete with them or maybe even develop your own?
It's a strategic decision that you just can't ignore.
Yeah, that's a great point.
It really makes you think about how are you responding as a retail executive to this rise in private label brands?
It's a whole new dynamic.
It is a whole new dynamic.
And speaking of new dynamics, let's talk about digital transformation.
(02:44):
This is the big one.
It's not just a nice to have anymore, is it?
It's like you have to do it.
The article really emphasized this need for seamless omni-channel experiences.
Today's consumer expects to be able to shop however they want, whenever they want, wherever they want.
And they want it to be easy.
They do.
And it needs to be easy.
So let me paint a picture.
(03:04):
OK, so you've got a customer and they're on your website, you know, browsing, adding things to their cart.
And then later that day, they decide to go to your physical store to actually see the product in person.
Well, they expect to be able to just seamlessly buy that product in the store with the help of an associate who can see what they were doing online.
OK.
That's the kind of experience that people want now.
(03:26):
They want to know something's in stock.
They want personalized recommendations and they want the checkout process to be super smooth, no matter where they are or how they're shopping.
That's a lot to ask.
And it puts a lot of pressure on retailers to not only have the right technology, but the right workforce to deliver on all of that.
Yeah.
Which brings us to another big piece of all of this.
And that's the employees and making sure they are engaged and informed.
(03:50):
You're so right to highlight that.
The article talks about real time communication, ongoing training, engaging with your associates.
These aren't just buzzwords.
These are things you have to do to succeed in retail today.
For sure.
You think about it.
You've got all these promotions changing all the time.
Pricing strategies, changing product information.
How are your employees supposed to help customers if they don't even know what's going on?
(04:14):
You have to give them the information they need in real time.
It's like giving them superpowers.
I love that.
It's like giving them superpowers.
But it's more than just sharing information.
Imagine a customer walks into a store and they're looking for a specific product, maybe for a special event.
They might need help with sizing or finding an accessory.
Now imagine you have a really well trained employee who knows everything about the products and can not only answer their questions.
(04:40):
But can offer personalized suggestions based on what the customer likes and their needs.
That's how you take a simple transaction and make it a really positive experience.
That's how you create those connections that make people want to come back.
And that brings us back to those employees.
It's a tight job market right now.
And investing in your workforce isn't just about the cost.
It's about attracting and keeping the best people.
(05:02):
It's a huge advantage, especially now.
It makes you think, you know, what are you doing right now to train and develop your employees?
What's working for you in this new environment?
Yeah, it's something we all need to be thinking about for sure.
We've covered so much already.
Economic pressures, consumer behavior changing, digital transformation, employee engagement.
(05:23):
It's a lot.
But I think the main takeaway here is that technology is just one piece of the puzzle.
It really is just one piece.
You're right, the article mentions their own solution, you know, insight.
But we can kind of zoom out and think about it more broadly.
What it comes down to is this holistic approach to retail.
It's about having the right technology, but also the right culture.
You need to value your employees.
(05:45):
You need to empower them to do well.
And everybody needs to have the shared vision for the future.
Yeah, it's about making sure your employees feel like they're part of something bigger, something that matters.
That's how you keep them engaged.
And that's how you create a retail experience that customers will actually remember.
In a world where people have so many options, you need to stand out.
You need to give them a reason to pick you.
(06:06):
And that reason can't just be price or convenience anymore.
It has to be something more, something emotional like an experience.
You're right.
Think about the brands that are doing this well.
They're not just selling stuff.
They're selling a whole lifestyle, a community, a set of values.
They're creating this feeling of belonging.
And they do that by empowering their employees to be like ambassadors for the brand.
(06:31):
To make those personal connections with the customer and create those amazing experiences that go beyond just buying something.
Right.
And how do you go beyond just a transaction?
How do you, as a retail executive, create those moments that make shoppers become loyal customers?
Well, I think it starts with knowing your customer really well.
What do they need?
What do they want?
What are their problems?
What are they looking for when they shop?
(06:52):
Okay.
And once you know that you can start to tailor what you offer and what you say to really connect with them on that emotional level.
Yeah. And you need to make sure that connection is there across all channels.
Yeah.
In the store, online, social media, everywhere.
It all has to be seamless.
They should be able to move between those channels without any issues.
And the experience should be consistent and personalized the whole way through.
(07:16):
It sounds tough, but I think it can be done with the right tech and the right people.
Okay. Let's talk tech.
Mm-hmm.
It's so important for all of this, empowering your workforce, making things more efficient, getting all that data.
But you have to choose the right tools, the ones that really work for what you need and your goals.
Exactly.
Don't just get the newest thing out there.
You have to think about how that technology will actually improve the customer experience, make things more efficient, and help you understand your business better.
(07:44):
And the data is so valuable, especially when you want to create those personalized experiences.
Yeah.
Are you using data to group customers by what they buy and how they act online so you can make better marketing campaigns?
Are you using data to figure out what your customers need and then offer them things they didn't even know they wanted?
That's what data can do for you.
It helps you be proactive instead of just reacting all the time.
(08:06):
It's all about going beyond just selling them something.
It's about building a relationship.
And that relationship needs trust, transparency, and a real desire to give them something of value.
We've talked about all the challenges that retail executives are facing, but we have to remember there's so much opportunity out there.
There's a lot of potential for growth and innovation.
(08:27):
It's a really exciting time for retail.
I agree.
The retailers who are going to do well are the ones who are open to change, who want to try new things, and who are always pushing the limits of what's possible.
They're the ones who are investing in their people using technology in a smart way and building brands that really connect with customers on a deeper level.
They're the ones who are building the future of retail.
(08:49):
And that brings us back to that final thought we want to leave you with in this deep dive.
We've talked about the pressures, the changes, the technology, but it really always comes back to the people.
It does. I want you to think about this for a second.
In a world where customers have more choices than ever, how do you create an experience that's not just another transaction?
How do you make it memorable, meaningful?
(09:10):
So a big question.
It is, but the article kind of hints at the answer.
It emphasizes that insight is a solution.
But the bigger idea is about having that holistic strategy.
Right. It's not enough to just have the best tech or the lowest prices.
No. You need to think about everything.
The technology, the culture, the leadership, and how committed you are to your employees.
(09:32):
You need to empower your team to be more than just people who take orders.
Right.
They are the face of your brand.
They can make or break a customer's experience.
Yeah. It's about creating a culture where people are always learning and growing.
Give them the tools and knowledge to not just meet expectations, but to go above and beyond.
What if your sales associates knew so much about your products and what customers need
(09:54):
that they could figure out what someone wants before they even ask?
Wow.
What if they could give recommendations that felt like a friend-giving advice?
That would be amazing.
That's the kind of experience that makes people loyal to your brand.
It's about more than just the transactions, it's about building a relationship.
Yeah.
And that relationship has to be built on trust, being open and honest,
and really wanting to give the customer something valuable.
(10:16):
I think that's the key to success in the future of retail.
It's not just about keeping up with the changes.
It's about leading the way.
It's about being brave, creative, and truly focused on the customer.
And I think that's a challenge that all retail executives are ready for.
I hope so.
Well, we hope this deep dive gave you some great insights and maybe even some inspiration
to tackle those challenges.
(10:37):
Remember, it's not about just surviving, it's about thriving.
And we think you can absolutely do that.
Thanks for joining us.
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