What: Alix Partners shares their predictions for 2023 and advice to retailers.

Why it is important: 2023 will not be a “back to normal” year but will bring fresh and new challenges.

Alix Partners reviews the strategy retailers need to adopt to address 2023. The year is bound to offer challenges which will be different from what retailers encountered in the past 3 years: the question is not anymore to get the product to consumers at any cost.

The analysts consider that retailers need discipline and rigor in order to overcome rising operating costs and customers’ inflationary worries. For 2023, Alix Partners considers that:

-    Consumers will spend more discerningly, and their debts will creep up (including through Buy Now Pay Later solutions),

-    Perceived pricing will be vital, which should favor private labels,

-    All retailers will have to stop heavy discounting to get rid of their inventories, and protect their margins at any costs, leading to more negotiations with brands,

-    Digital will be a must-have in the relationship with customers, and not only a transactional tool,

-    Business models will need to be customer-centric, in order to make the most of zero-party data (retail media networks) and loyalty programs,

-    Circularity will keep on growing, due to inflationary concerns for brand new goods,

-    Inventory management will come back to “normal”,

-    Supply chains will diversify their sources and not rely only on China in a tense geopolitical context,

-    Cash management will be king.

2023: don’t hope, plan