As we near the end of what has been a volatile year for the retail industry, we thought it would be a good opportunity to review the top trends that have impacted retailers in 2022. While this list isn’t exhaustive (there’s simply too much to cover in a single article), it does provide valuable insights for retailers and brands as they formulate strategy for 2023.

1. Retailers Launching Media Networks

Leading retailers, including Amazon.com, Walmart, Target, The Home Depot, among others, are expanding their businesses to include media sales as a key revenue source. According to The Trade Desk, 74 percent of brands have dedicated budgets for RMNs. And there’s potential benefit to retailers, brands and consumers from a well executed RMN. Retailers generate additional revenue from the sale of ad space on their digital properties; brands (i.e., advertisers) gain direct access to retailers’ customers and their first-party data, allowing for better targeting of their products; and consumers benefit from better personalized shopping experiences. Expect the growth of RMNs to continue in 2023.

2. Retailers Move Into the Metaverse

In an effort to be where their customers and prospects are, an increasing number of retailers and brands are establishing a presence in the metaverse. This virtual world offers an opportunity for brands to sell digital products (e.g., NFTs) and experiences, while also establishing relationships with younger, tech-savvy consumers. From Nike to Zara, retailers are leveraging Web3 and the metaverse as new acquisition channels. For more on retailers’ finding their place in the metaverse, check out this panel from Total Retail Tech this fall. (Total Retail is the sister brand of Women in Retail Leadership Circle.)

3. The Return of In-Store Shopping

As we slowly distance from the pandemic, consumers are becoming more comfortably heading back to brick-and-mortar stores for their shopping needs. This is evidenced by the data emerging from this past weekend’s Super Saturday, with 132 million consumers shopping in-store. What’s become clear is that retailers will need to adopt omnichannel strategies, including BOPIS and cross-channel returns, to succeed in a hybrid retail environment.

4. Inflation Challenges Retailers’ Bottom Lines

Record inflation this year has proved to be a concern for retailers. This extends to multiple facets of their businesses, including material/supplier costs, shipping costs, labor costs, among others. Furthermore, given these inflationary pressures, retailers in many cases have had to increase prices or, if not, take a hit to profit margins. And of course inflation is impacting consumers as well, resulting in decreased consumer confidence and tightened spending. With a recession potentially looming in 2023, the health of the consumer is a top concern for many retailers as we move into a new year.

5. ‘Recommerce’ and the Sustainability Movement

The global secondhand goods market was forecast to grow by 24 percent in 2022, according to a ThredUp survey. The report estimates that the U.S. secondhand market will more than double by 2026, reaching $82 billion. This aligns with consumers’ increasing sentiment to favor sustainable retailers and brands. That commitment to sustainability should expand beyond product to include manufacturing, supply chain, packaging, store operations, and more. Consumers want to support retailers that they believe share common values. Therefore, not only is being environmentally sustainable the right thing to do, but it makes business sense as well.