What: The year has already been full of major retail happenings, with retailers filing for bankruptcy, layoffs, and the threat of recession, some retailers are feeling the pain more than others as the year kicks off.

Why it is important: Value conscious consumers, rising layoffs, and new leadership are shaping the year ahead.

With bankruptcy, ongoing layoffs, inflation, and the threat of recession, consumers have started to pull back and take a more cautious approach to spending.

Default rates are expected to stay relatively low, however its likely that retail’s strong will get stronger and the weak will suffer. However, some sectors could be better off than others.

E-commerce sales are still on the rise, yet digital native brands are suffering through layoffs and cost-cutting as venture capital firms pull back and take a harder stance on profitability.

Consumers are turning towards private labels and seeking out cheaper alternatives as they navigate the current financial landscape, which could result in a boost for the resale market.

What lies ahead for retail in 2023