The Top 15 Retail Trends for 2022

Find out the retail trends shaping shopping in 2022, including omnichannel and digital commerce opportunities, investments in retail technology and automation, and overcoming challenges around the supply chain, inflation, and labor shortages.

The Retail Trends Shaping How We Shop in 2022

From a digitally-transformed shopping experience to global supply chain disruptions and a pandemic that refuses to quit, there’s one thing retailers can count on: People are always going to shop.

1. Digital Commerce Matters More Than Ever

The pandemic made online shopping a necessity. Two years later, stores have reopened, but digital commerce is projected to maintain its upward trend.

When looking at global online sales, Salesforce reports 57% digital growth in 2020, and 16% growth in 2021, with eMarketer data predicting a continued increase through 2025.

Data source: eMarketer

eCommerce Purchases and “The New Normal” Retail Categories

Using Google Trends data, Google has identified the retail categories which are now “The New Normal.” Searches for these products increased during the pandemic, but have not returned to “normal” pre-pandemic levels.

Google’s findings align with McKinsey data demonstrating apparel, cosmetics, household items, and pets as categories consumers intend to splurge.

Mobile Commerce

Because our phones are with us anywhere and at all times, mobile commerce has become the primary retail purchase method. According to Snapchat, 67% of retail sales came from mobile in 2021.

2. Social Selling

With more time spent on our phones, it’s no surprise many of those minutes are allocated towards social media.

Not only does social selling provide targeting to reach your target market, it increases the likelihood of purchase: 55% of consumers who participate in m-commerce made a purchase after seeing a product on social media.

Livestreaming

Retailers that want to make an emotional connection are turning to storytelling – and livestreaming – to increase sales.

3. In-Store Shopping is Here to Stay

Despite many believing the pandemic would be the end of brick-and-mortar as we know it, two years into the pandemic, retailers are still expanding their physical presence.

Turning Brick-and-Mortar Stores into a Competitive Advantage

In-store shopping has advantages that are impossible for ecommerce. Shoppers are also less likely to have the hassle of returns, thanks to the ability to see, test, and try-on products before purchasing them.

Safety and Self-Service when Shopping In-Store

In response to consumer needs surrounding the pandemic, Harvard Business Review reports 46% of retailers published health and safety standards for physical locations.

4. Omnichannel Retail: The Future is Phygital

A seamless omnichannel experience sits at the heart of retail transactions. According to McKinsey, 60-70% of consumers are now shopping in an omnichannel way.

5. Curbside Pick-up and BOPIS

The pandemic amplified the need to not only offer omnichannel fulfillment services, but do it well. Retailers rose to the challenge, and are continuing to utilize both curbside pickup and BOPIS to improve sales and customer satisfaction.

6. Rapid Delivery and Quick Commerce

While we all love our Amazon Prime subscriptions and two-day delivery, fast fulfillment has driven share-of-market for years.

7. Supply Chain Challenges Continue

Supply chain issues remain a challenge – and a costly one. An analysis by Kearney predicts that supply chain challenges could result in lost EBITDA ranging from $9 to $17 billion for apparel and footwear brands.

Image source: Kearney

8. Investments in Technology and Automation

A study by the Baker Retailing Center and First Insights identified the technologies retailers are investing in, including QR codes, digital product testing, and predictive analytics that leverage the power of data to uncover revenue opportunities.

Data source: First Insights

9. Attracting Talent and Overcoming Labor Shortages

With 683,000 workers leaving their retail jobs in October of 2021, retailers are doing all they can to attract talent, offering perks such as signing bonuses, higher pay, and tuition assistance.

10. The Marketing Strategies That Matter

While there are plenty of strategies to choose from, four of the top retail marketing trends for 2022 center on personalization, customer retention, demand shaping through promotions, and planning for a world without cookies.

Personalization

We live in a world driven by data, giving retailers more opportunities than ever to personalize experiences.

11. Pricing and Inflation

The International Monetary Fund (IMF) raised its inflation forecast in the beginning of 2022, predicting inflation to average 3.9% in advanced economies and 5.9% in emerging markets and developing countries.

12. Buy Now Pay Later (BNPL)

Customers are turning to Buy Now Pay Later services. Holiday shopping proved this point, with 8% of orders processed using Buy Now Pay Later.

13. Sustainability

According to First Insights and the Baker Retailing Center, two-thirds of consumers are willing to pay more for sustainable products.

14. Recommerce

Recommerce is on the rise. Inflation could further propel this trend, and it is an opportunity often overlooked by retailers.

15. The Rise of Returns…and Customer-Centric Return Policies

With the rise of ecommerce comes the natural rise in returns.

Forecasting Customer Demand for Success in 2022

From investments in automation to the explosion of commerce across digital channels, technology is a common thread weaving its way through 2022’s retail trends.