EDITOR ’ S QUESTION

new year is upon us and what will 2025 bring for businesses ? Four experts make their predictions in this month ’ s Editor ’ s Question , starting below with Rob Shaw , MD EMEA at Fluent Commerce .

Rob Shaw , MD EMEA , Fluent Commerce

THIS HAS CHANGED THE RETAIL LANDSCAPE , REFLECTING A BROADER TREND OF CONSUMERS PRIORITISING NEED OVER WANT .

In recent months , we ’ ve seen a significant amount of uncertainty across industries , driven by macroeconomic factors and political shifts , such as the UK and US elections . Historically , when faced with instability , businesses tend to delay major decisions or pause projects . However , we ’ re now beginning to see those projects that were on hold for the past 12 to 18 months start to move forward . The next 12 months will bring modest growth . While global political situations may still generate some tension , businesses will gradually accept the current environment and adapt accordingly .

Shifting buying behaviours

In the retail industry , there ’ s been a noticeable uptick in foot traffic in town centres , suggesting the high street is once again becoming a key destination . However , buying behaviours have shifted . Today ’ s consumers are now more focused on purchasing essential items rather than discretionary goods . This has changed the retail landscape , reflecting a broader trend of consumers prioritising need over want . As disposable income remains tight and competition remains fierce , retailers will need to focus more than ever on customer experience .

Efficiency will also become a key driver for profitability . With ongoing supply chain challenges impacting costs , businesses will need to find ways to streamline operations . For retail buyers , this means understanding what trends consumers are going to be interested in and then ordering the right amount of stock . To supplement this , retailers need a complete real-time inventory visibility so they are able to see what they have to sell now , what ’ s already in transit , what ’ s on its way and what ’ s in the backlog .

Supply chain pressures

Indeed , supply chain disruptions have been a cold shower for retailers this year . From the Red Sea crisis to the recent US port strikes , these events have been a shock to the system . Retailers didn ’ t realise how big of an impact it could have on their operations . They ’ ve been bitten , and now they ’ re shy . As a result , CFOs will be nervous about overexposing themselves .

It ’ s cognisant of when COVID-19 hit . Initially , we experienced a massive shortage of products . Then , supply chains opened up and people overordered and overstocked . A lot of brands fell by the wayside as they overspent on purchasing products they couldn ’ t turn into revenue . It ’ s a balance between feast and famine – one that retailers will be paying closer attention to in the coming year .

Learning from these events , retailers will change the way they source goods . More near-shore supply chains could emerge as companies look to reduce reliance on the Far East . The introduction of export taxes in the US may also have a significant impact on overseas trade , possibly leading to shifts in market strategies for European brands as they reconsider their expansion plans .

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