Taking stock of the new retail value paradigm

afr.com:

This content is produced in commercial partnership with Accenture

Aussies are doing it tough, with one-third feeling uncertain about their future due to financial concerns, and the rising cost of living forcing them to change what, how, when and where they buy.

Only a few categories will be unaffected by these customer-driven changes, manifesting as moderated spending, trading down, switching categories, or sometimes stopping spending altogether.

Consumer behaviour is shifting as Australians respond to growing economic pressures. iStock

Some of these changes already evident with growing spend in many categories slowing down, spending more for Petrol down by 14 per cent, spending more at restaurants and café down 5 per cent, spending more on food and beverage home delivery down by 8 per cent along with an 8 per cent drop in spending more on electronic device purchases, according to our recent Australia Pulse survey.

The current cultural context presents a big opportunity for retailers to go beyond the usual price, product and portfolio levers to provide value to consumers. To ensure their future survival and longer-term growth, retailers must provide value that impacts the individual, facilitates community, and improves society at large, offering Australians optimism and joy during the current permacrisis.

For the individual, wellbeing has never been more important, with one in three Australians spending a lot more or a little more time on wellbeing compared to this time a year ago.

Michelle Newton, head of cultural forecasting for Fiftyfive5, part of Accenture Song. 

Leading-edge retailers are adding value by tapping into this need empowering consumers to support their wellbeing through the retail experience.

H&M’s New