Retail is an industry that is rich in and reliant on small businesses. Nationwide, small retailers line high streets and bring communities together. Their value is not just social, but economic, contributing 30 per cent of total Gross Domestic Product (GDP) in the sector, according to the ASBFEO. They’ve navigated challenges, seized opportunities, and capitalised on trends in recent years, and will face more in 2024. However, with tighter budgets and fewer resources than big box competitors, it’s harder for small retailers to invest in major trends. However, there are some influential trends that small retail businesses can capitalise on irrespective of their budget.
Bricks-and-mortar shopping as strong as ever
Small retailers have often been the forgotten victim of the eCommerce boom, which disproportionately benefits larger retailers. However, bricks-and-mortar, for so long synonymous with small retailers, will be as in-demand as ever in 2024. According to Lightspeed’s Retail Insights & Shopper Sentiment report, 76 per cent of Australians continue to shop in-store at least once a month, while 56 per cent visit brick-and-mortar stores to see, touch, or try on products in real life before purchasing. For smaller retailers, focusing on your in-store strategy – rather than throwing all your eggs in an online basket – could pay dividends in 2024. Immersive or ‘experiential’ experiences, like DIY workshops, demonstrations, or classes can be low-cost ways to incentivise customers in.
Omnichannel, omnichannel, omnichannel
Key for any retailer, irrespective of size, is being present wherever your shoppers are. In 2024, omnichannel will take on an even greater level of significance. According to our research, 45 per cent of shoppers research products online before visiting a store to make a purchase, while 17 per cent research in-store then purchase online. By being present both online and in-store, and making the two channels feel like one, businesses can ensure they’re discoverable and meeting the needs of as many shoppers as possible.
Think sustainably about sustainability
There is no bigger issue for our generation than sustainability. It’s not just an issue for policymakers or companies extracting fossil fuels, but for every business. Considering over two in three (69 per cent) Aussies either always or often consider sustainability when making purchases, retailers must take note. Nobody expects your small retail business to solve the issue, but by taking steps on a small scale – and then communicating them – your audience’s affinity to your business could grow. Increasing sustainable packaging, reducing wastage, boosting sustainable sourcing practices, and promoting the value of click-and-collect are quick, easy, and cost-effective ways to make a difference.
Pricing and promotions
Cost-of-living pressures have dominated headlines for 12 months, and will likely persist. In fact, our research shows that 33 per cent of shoppers are concerned that in-store pricing may be higher than online, while 38 per cent are discouraged by the inability to search for cheaper deals in physical stores as easily as online. So how can you treat pricing, promotions, and communication to your advantage? That’s not to say you need to engage in a race to the bottom. But by implementing transparent pricing strategies, offering price guarantees, and focusing on providing value for loyal customers, your business will be well-placed to strengthen relationships with the millions of Aussies that are fierce supporters of ‘local’.
Those are by no means the only trends that are expected to shape retail in 2024. For example, AI will grow in both adoption and impact, brands will use community-building and personalisation to drive loyalty, customers will prioritise retailers who provide more than their core product offerings – like free alterations for clothing retailers – and more. But for small retailers, capitalising on every trend isn’t a necessity; just focusing on the cost-effective, budget-friendly ways you can meet and exceed your customers’ needs.
