Customer trends are reshaping retail: Here’s how you can adapt
Customer expectations are evolving fast, fueled by digital innovation, economic uncertainty and shifting lifestyle preferences.
For retailers, this means the ability to adapt quickly is no longer optional.
Staying competitive requires strategies that allow you to anticipate and respond to emerging trends before they impact your bottom line. Here are the trends shaping retail and the strategies that can help you respond.
What are the current customer trends?
Today’s shoppers want more than products; they want experiences that feel effortless, personalized and consistent across every interaction. Understanding these expectations is critical to staying relevant and competitive.
Seamless and convenient omnichannel experiences
Modern customers expect seamless, intuitive interactions throughout their buying journey.
Whether a customer is browsing in-store, researching online or purchasing via mobile, they expect a unified experience that supports them from discovery to delivery. For example, a customer should be able to see a product in-store, explore reviews and details online, make a purchase through their preferred channel and then choose from flexible fulfillment options such as home delivery, curbside pickup or same-day service.
Ultimately, success lies in creating a frictionless experience that makes it easy for customers to engage, purchase and return with confidence.
Personalization that drives engagement
Beyond convenience and consistency, today’s customers expect experiences that feel uniquely tailored to them.
They’re not looking to browse an entire inventory. They want curated recommendations that reflect their past purchases, browsing history and the buying patterns of similar customers.
However, personalization alone is not enough. These tailored experiences must be accessible and seamlessly integrated into the customer journey, whether through dynamic product suggestions, personalized landing pages or targeted promotions.
When done well, personalization builds trust, increases engagement and drives loyalty.
Elevated in-store experiences
Despite the growth of digital channels, the physical retail environment remains a vital touchpoint for customer engagement.
Placer.ai reports that mall visits grew 3.7% in April compared to the previous year, an encouraging sign that consumers are still drawn to in-person shopping experiences. In response, major retailers are reimagining their brick-and-mortar locations to create environments where customers are encouraged to linger, explore and connect with the brand.
For example, companies like Tapestry are aiming for slower shopping, with stores that have “ambiance boosters,” like cocktails and custom furniture, “meant to give shoppers reasons to remain in stores for longer and potentially spend more.” They’ve found that these stores “are performing better than other locations, with elevated traffic, longer dwell times and a higher frequency of returning.”
3 strategies to help you adapt
To keep pace with evolving customer expectations, retailers need strategies that enable faster, smarter decision-making, including:
1. Building better vendor and supplier relationships
Effective inventory management is key to staying agile. Overstocking outdated or off-trend products leads to excess inventory and can even damage brand perception.
To mitigate these risks, focus on cultivating collaborative relationships with suppliers and vendors. Drawing from their insights into sales trends and lead times enables more informed purchasing decisions and faster responses to market shifts.
2. Establishing a robust data foundation
Today’s customers now interact with your brand across multiple channels. To deliver consistent, personalized customer experiences across all these touchpoints, your backend systems need to be flexible, scalable and capable of delivering accurate, real-time information.
Modern retailers are moving away from monolithic platforms and embracing a more modular approach known as composable or headless architecture. This means choosing the best tools for specific functions — like e-commerce, inventory management or fulfillment — without creating data silos across the business.
With composable architecture, retailers are better equipped to:
- Gain centralized visibility into demand, inventory and fulfillment, helping them respond quickly to customer needs and market changes.
- Provide consistent experiences and personalization via any channel.
- Adapt quickly as business grows and shifts. Whether retailers are expanding into new channels or regions, this more flexible architecture can adapt without disrupting operations.
To make this architecture work, a strong data and integration layer is key. Some options for retailers include:
- Cloud-based platforms that make it easier to centralize and standardize data.
- ERPs such as NetSuite and Microsoft Dynamics 365 Business Central that offer app marketplaces that make it easier to connect and scale.
- Integration platform as a service solutions (iPaaS) that allow you to move data seamlessly between systems.
3. Leveraging AI
AI empowers retailers to proactively respond to emerging customer trends, rather than react after the fact.
For example, AI enhances the demand and material planning process by incorporating broader, real-time inputs, such as market sentiment, global supply chain disruptions and geopolitical risks, into its analysis. This enables more accurate forecasting than relying on rolling six- or 12-month forecasts based on prior-year data and subjective judgment.
Your business can also leverage the next step in AI innovation: AI agents.
AI agents are autonomous AI tools capable of performing tasks by drawing from both internal and external data sources. They can take structured and semi-structured data — including PDFs, emails, reports and customer transactions — and use large language models (LLMs) to interpret and act on that information.
Agents free up employees to focus on higher-value, strategic work rather than repetitive tasks. For example, agents can leverage data to help:
- Dynamically adapt workflows and processes to align with evolving customer behaviors.
- Monitor inventory levels and automate restocking decisions.
- Deliver personalized product recommendations.
- Streamline customer service interactions online and through mobile apps.
- Optimize in-store staffing and layouts.
How Wipfli can help
Wipfli blends retail industry experience with technology expertise to deliver digital services tailored to your needs. Visit our retail services page today to discover how we can help you build a more agile, competitive business.
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