Elle Cade, our Content Manager, recently attended the CACI Retail Briefing conference at the beautiful Ham Yard Hotel where the discussion focused on how in today’s ever-changing climate, standing still is not an option. Consumer expectations are evolving, digital advancements are ramping up, and competition is fiercer than ever. The event shared insights on how brands can adapt, innovate, and grow in today’s ever-changing retail landscape.
The Power of Data-Driven Decision-Making
Elle’s key takeaway was that businesses that thrive are those that have embraced change and use consumer insights to build resilience and efficiency. Data isn’t just a tool it’s the foundation for making smarter, more strategic decisions. CACI highlighted how brands can harness their extensive consumer behaviour insights to drive success in today’s competitive retail landscape.
Understanding the Next-Gen Consumer
Retailers must recognise that shopping habits vary significantly across generations.
Gen Z Influence: By 2029, Gen Z’s spending power is projected to reach $4.9 trillion. Currently, 75% of them spend over three hours a day on social media, making digital engagement a non-negotiable strategy.
Millennial Shopping Trends: 70% of millennials find online shopping more convenient, and 74% will switch brands for better ease and convenience. If retailers fail to optimise their digital experience, they risk losing this audience.
Boomer Preferences: Only 31% of boomers prefer online shopping, which means brands need a multi-channel approach to ensure they don’t alienate parts of their audience.
The Rise of Retail Parks & Convenience Shopping
Shopping behaviours are shifting in favour of convenience. Retail parks are seeing increased popularity as they offer a “one-stop shop” experience. CACI data indicates that consumers who shop on the high street also visit retail parks, but there’s a segment of retail park shoppers who don’t shop elsewhere – meaning brands need tailored strategies to capture both groups.
Winning Strategies from Industry Leaders
Marks & Spencer (M&S): This heritage brand continues to grow by innovating its strategies using data insights:
- Revitalising in-store experiences
- Expanding click-and-collect services
- Partnering with designer brands and popular influencers
- Embracing a diversified digital presence—including individual store-led TikTok content
Five Guys: By utilising CACI’s predictive models, Five Guys has successfully expanded into international markets, choosing optimal locations with data-driven precision while staying true to its brand identity.
Emerging Retail & Consumer Trends
1. Beauty
Beauty is thriving, driven by influencer culture and the demand for premium products. With department store closures, multi-brand beauty retailers like Sephora and Space NK are filling the gap. The “lipstick effect” continues to fuel spending, as consumers seek small, luxury indulgences in a cost-of-living crisis.
2. Footwear
Sneaker culture and 2000s-inspired footwear trends are keeping the shoe sector strong. Retailers offering a variety of brands under one roof are seeing significant success.
3. Social Wellbeing & Fitness Culture
Consumers are investing in their health, leading to:
- Growth in protein bars, supplements, and fitness-tracking devices
- Gorpcore and athleisurewear as fashion
- Increased participation in community-based activities like running clubs
- Partnerships between fitness brands and retailers (e.g., Chipotle x Strava)
Holland & Barrett is a standout performer in this space, experiencing a 31% increase in stores as younger consumers prioritise wellness. They are currently the top performers across health and beauty.
4. Digital & AI-Driven Engagement
Brands are integrating AI into their strategies to enhance convenience and personalisation:
- Chatbots and AI-powered customer service
- AI-driven trend predictions and inventory management
- Interactive digital experiences (e.g., British Land’s Minecraft activation at Canada Water)
Interestingly, 48% of millennials are comfortable with AI, while only 23% of boomers share the sentiment. Retailers must ensure AI implementation aligns with the expectations of different demographics.
The Future of Retail: Creating Social Hubs
Retail spaces are not just for shopping; they are becoming community hubs. With Gen Z spending 1,000 more hours in solitude than previous generations, there is an opportunity for brands to transform stores into social spaces, hosting events and activities that drive engagement.
As AI takes over mundane tasks, retailers must strategically capitalise on this freed-up time to enhance in-person experiences and incentivise footfall.
Elle’s Final Thoughts
Adaptation, innovation, and customer-first strategies are the keys to long-term retail success. By using data, embracing digital transformation, and creating engaging in-store experiences, brands can position themselves for sustained growth. CACI’s insights make one thing clear: The future belongs to those who evolve.
*Statistics quoted are from discussions at the conference