Navigating the transformation of Europe’s retail industry

The European retail industry is undergoing significant transformation, driven by changing consumer behaviours and economic uncertainties. In 2023, retail trade volume in the EU increased by 5.2 per cent from the previous year, reflecting a recovery in consumer spending post-Covid-19. Amidst these shifts, the key to success remains: building genuine, long-lasting relationships with customers. 

The Power of Brand Loyalty

Marigold’s 2024 European Consumer Trends Index reveals that 65 per cent of consumers are willing to pay more to shop with brands they’re loyal to, highlighting the immense value of brand loyalty. Retailers must invest in strategies that foster these deep connections.

Graph taken from the Marigold’s 2024 EuropeanConsumer Trends Index, showing consumers’ responses by generation on their loyalty to brands .

Personalisation: The Heart of Relationship Marketing

Personalisation is crucial for successful relationship marketing. Data shows that 84 per cent of European consumers feel valued as individuals by their favourite brands, and 78 per cent engage with personalised offers. Retailers must leverage zero-party data—information directly from customers—to craft tailored experiences, especially as the industry moves away from third-party cookie tracking. 

Graph taken from the Marigold‘s 2024 Retail Trends Guide, showing the benefits that European consumers consider worthwhile in exchange for their personal data..

Embracing Omnichannel Experiences

Consumers today expect seamless shopping experiences across multiple channels. Omnichannel marketing bridges online and offline channels, delivering consistent and personalised messages throughout the customer journey. With 63 per cent of consumers reducing social media engagement for mental health reasons, maintaining strong presence in email, SMS, and push notifications is essential. Email, in particular, remains the top marketing channel, driving purchases more effectively than social media ads. 

Graph taken from the Marigold’s 2024 European Consumer Trends Index, showing the channels most favoured by consumers for making purchases over the last twelve months, by generation.

Graph taken from the Marigold’s 2024 European Consumer Trends Index, showing the channels most favoured by consumers for making purchases over the last twelve months, by generation.

Building Lasting Customer Relationships

To thrive in Europe’s evolving retail landscape, retailers must focus on personalisation, understanding consumer needs, and leveraging direct communication channels. This approach builds a loyal customer base that can weather any economic storm.

Graph taken from the Marigold’s 2024 European Consumer Trends Index, showing brand initiatives that build loyalty among European consumers.

Download the full 2024 European Consumer Trends Index to get access to more data and to help you make informed decisions that will impact your business.
This site is registered on wpml.org as a development site. Switch to a production site key to remove this banner.