Retailers face up to economic tensions

The current crisis is having an impact on our lifestyles, our consumption habits and the way we get around. Retail is at the heart of these tensions, because for there to be retailers, there have to be manufacturers and consumers, all of whom find themselves in a complex situation. How do retailers respond to these changes, while maintaining their customer base and profitability? This article presents concrete actions taken by distributors to support change. It also shows that, to ensure business continuity, retailers need to transform their business models in line with new consumer trends, notably by adopting strategies focused on private labels, localization, more environmentally-friendly consumption patterns and distribution methods better adapted to today's economic reality.

Distributors' actions to support change

Cost management and green investment

Rising purchasing costs and high energy costs are major challenges facing retailers. To meet these challenges, many are investing in green initiatives. These investments can take many forms, from installing solar panels on store roofs to purchasing fleets of electric vehicles for deliveries. Retailers can also save energy by switching off signs at night, replacing traditional light bulbs with LED bulbs and raising employee awareness of eco-responsible gestures. These actions are important not only to achieve carbon neutrality, but also to ensure the company's profitability.

Leclerc in Romorantin ainvested in solar panels on its store. The aim is to reduce electricity bills and achieve carbon neutrality. The investment is estimated at 200,000 euros. Amazon in quant à ordered 100,000 electric vans from the startup "RIVIAN" for its deliveries. As for Decathlon and Leroy Merlin, efforts have been focused on changing the bulb fleet to 100% LED.

Faced with inflation

Current geopolitical tensions are also having an impact on retailers, who have to cope with inflation approaching the double-digit mark while staying on course with their original strategic objectives. Distributors are therefore forced to transform their business models in order to sustain their activities.

New consumer trends driving a transformation of the retail model 

Private label and local strategies 

Today, private labels are a way for consumers to cope with inflation. That's why many chains, such as Lidl, Leclerc and Carrefour, are focusing on these brands, with a strong emphasis on local products at affordable prices. Carrefour has already included this strategic axis in their long-term plan (2026).

More environmentally-friendly consumption patterns 

Emerging consumption patterns are more respectful of consumers and the planet. Retailers must therefore offer alternative solutions to meet consumers' new expectations. Leasing, product buy-back and local sourcing are just some of the ways to ensure business continuity and avoid customer attrition.

More suitable distribution methods 

With the evolution of technology and the emergence of new consumer buying behaviors, companies are increasingly turning to more suitable distribution methods. For example, online sales have become an increasingly popular method for companies wishing to reach a wider audience and offer a fast, convenient purchasing experience. Companies are also using mobile applications and e-commerce platforms to facilitate transactions with customers. Other modes of distribution, such as ephemeral and pop-up stores, are also becoming increasingly common, as they enable companies to interact directly with customers and generate interest in their products or services. Finally, companies are also using social networks to promote their products and interact with customers, which can help them build a loyal customer base and enhance their online reputation.

What lessons can distributors learn from this period? 

The current crisis has prompted retailers to rethink their business models and strategies to cope with the current economic and geopolitical tensions. Many retailers have already begun to invest in eco-responsible actions to ensure the sustainability of their business while reducing their environmental impact. However, these actions may not be enough to meet today's challenges. Retailers therefore need to go further by transforming their business model to adapt to new consumer trends and offer a more responsible, environmentally-friendly offering.

In short, retailers have an important role to play in the transition to a more sustainable and responsible economy. They have a responsibility to implement strategies that enable them to continue to provide products and services to their customers, while reducing their environmental impact and responding to today's economic challenges. This transition will not be easy, but it is necessary to ensure the long-term viability of our businesses and to contribute to a more sustainable future.