UK consumers can expect a tsunami of offers and discounts in 2023, predicts retail heavyweight
Consumers in the UK and across many other markets can expect a tsunami of offers, discounts and other price cuts in 2023 as retail’s focus is rapidly shifting to improving demand, according to an industry insider.
As many retailers over-ordered in recent years, while there was a supply shortage, companies are now keen to get rid of their bulk, Eddie Capel, the CEO of Manhattan Associates, said.
“Inflationary pressures will force many retailers to cut prices, to offer discounts,” he explained.
Moreover, some retailers may not be able to keep the cut-throat competition, with a price war possible in some markets.
Will some firms go bust? “Possibly, yes,” Capel said.
Cultural shift in retail
Post-pandemic, retail is also moving from a ‘no to yes culture’, he continued.
While previously consumers were faced with dissatisfactory answers, and their desired items often not available for days or even weeks, or not in their preferred colour or size, that approach is no longer acceptable to many retailers.
“Store associates turn into promise makers.”Eddie Capel
“Technology is helping to keep those promises and we are promise keepers, helping the store associate to keep the promises he makes,” Capel continued.
“We are promise keepers, helping the store associate to keep the promises he makes.”
The Yes culture is primarily driven by amazon, he said.
“Retailers did not have to worry about loyalty, has changed immensely now. Creating yes culture has become key and amazon and others have pushed retailers on service, delivery, promises,” Capel concluded.