What's next for private label and retail in 2022
Placer.ai, a company that tracks retail foot traffic, has released a new report forecasting what’s next for retail in 2022 by looking back at 2021’s trends. The 2022 retail forecast states that given the pandemic and its ongoing challenges, an uncertain time for retailers can also be a time for opportunity.
“With shifts in consumer behavior and expectations, the retailers that are willing to adopt new and innovative strategies and approaches will be the ones that stand out in 2022,” said the company. “This white paper identifies eight trends that are expected to play a key role in shaping the future of brick-and-mortar retail going into 2022. Where relevant, we have provided examples using foot-traffic data and location analytics to show how these trends have already begun to impact the retail landscape.”
The white paper analyzed data from a variety of retailers with private label collections, such as Walmart, Target, Sephora, Ulta, Dick’s Sporting Goods, Amazon Fresh and more. Eight key trends were identified for retail in 2021, such as retail healthcare, small-format stores and a comprehensive omnichannel approach, all of which private label brands can benefit from, particularly in the grocery sector.
“Private labels are likely not a major driver of these trends, but they are likely a significant beneficiary and asset,” Ethan Chernofsky, Placer.ai’s VP of marketing told Store Brands. “While the wider surge in grocery visits is driven by a multitude of factors, one is the clear value benefit that a supermarket visit creates. That same push should benefit many private labels that offer more cost-effective options within the grocery environment.”
Placer.ai’s report identifies some “haves” (as opposed to “have-nots”), which were able to successfully pivot and become stronger during the pandemic, two of which boasted expansive private label portfolios. Visits to Target were up more than 20% in November compared to the January 2020 baseline, while Walmart’s visits were up roughly 10%.
The report adds that retail is “far from dead.” During the week of Nov. 29, foot traffic to retail stores overall was up 3% compared to the same week in 2019. Visits were also above pre-pandemic levels each week between Oct. 4 and Nov. 15. Looking at foot traffic by sector, Placer.ai reported that visits had rebounded back to pre-pandemic levels for dining (roughly even with 2019) and shopping centers (up 2-3%) by Oct. 2021.
The full report can be found here.