The RETAIL NXT 2023 It provided a platform for the most pressing questions and challenges facing the retail sector. One of the highlights was the presentation by Kai Hudez, Managing Director of IFH Cologne, who presented a comprehensive yet concise overview of current crises and their impact on the retail sector. From global crises and digital disruption to the sustainability debate, he painted a realistic picture of the retail landscape – and simultaneously pointed out ways out of the crisis.
Trade in crisis mode: A review
Kai Hudez began his presentation with an overview of the unprecedented challenges of recent years:
- Corona pandemic: A catalyst that has taken digitalization and online commerce to a new level.
- Ukraine war and inflationIn addition to supply chain problems, rising prices are significantly impacting consumer sentiment.
- Signa bankruptcy and vacanciesThe future of large retail spaces is uncertain and could negatively impact many city centers.
His assessment: "Crises are not new, but their speed and complexity have increased. The retail sector needs to react faster."
What do consumers want in times of crisis?
Using data from the Trend check trade, a comprehensive study by the IFH in collaboration with Salesforce, Hudez presented the most pressing concerns of consumers:
- 60% of consumers They state that price increases frighten them.
- 52% fear, unable to maintain their standard of living.
These figures illustrate the central challenge: Price consciousness dominates consumer behavior, while topics such as inspiration and experiential shopping fade into the background.
Online retail: A sideways movement?
Hudez refuted the claim that online retail is shrinking:
- Sideways movement instead of shrinkageE-commerce is stagnating at a high level, but is not showing any declines.
- Slow but stable growth pathThe IFH expects cumulative growth of 20% by 2026.
His prediction: Brick-and-mortar retailers must adapt to hybrid consumer behavior, in which online and offline purchases are increasingly merging.
The role of city centers: Vitality through networking
A vibrant city center is inconceivable without commerce – that was one of Hudez's key messages. Studies show:
- Shopping remains the most important motive, why people visit city centers.
- However, retail spaces must be combined with gastronomy and experiential concepts in order to remain attractive.
His warning: "The best way to combat vacancy is before it arises." Without proactive measures, a downward spiral threatens to make city centers permanently unattractive.
The platform question: Why customers go to Amazon
Amazon remains the dominant player, primarily thanks to its almost unbeatable selection and convenience.
Hudez posed the central question that every dealer must ask himself:
"Why should the customer buy from me and not from Amazon?"
The answer lies in a clear positioning and a distinctive value proposition – be it through service, inspiration or sustainability.
Sustainability: Aspiration and reality
Although consumers value sustainability, there is often a gap between attitude and behavior:
- 72% of consumers They state that price is more important to them than sustainability.
- Secondhand shopping is boomingMarkets for used goods such as fashion and books are growing and combining price awareness with sustainability.
Hudez sees this segment as an opportunity to reach consumers who want to save money and consume more sustainably at the same time.
Key Takeaways: Trade needs clear answers
In closing his presentation, Kai Hudez summarized the key success factors for retail:
- Digitalization is indispensable, in order to offer added value to customers.
- A clear positioning gives customers a reason to buy in a physical store.
- Crisis management requires speed., but also foresight.
His conclusion: "There will always be trade – but only for those who deliver real added value."
Kai Hudez's presentation was not only an analysis of the challenges, but also a guide on how trade can grow and reinvent itself in difficult times.