Trend setters

As we head into 2024, one thing is for sure, we can expect significant forces of change to continue to impact how spaces are designed and adapted to remain relevant, competitive, and valuable.

In preparation for our Pulse Global Survey this year, we have asked our expert team for their predictions of the top trends for the year ahead. We’d also like your feedback and ideas on any trends you think will be important in 2024, which you can share on the link at the end of the article.

Pragma’s top trends for 2024:

The pursuit of distraction: creating spaces to delight
We know from our Global Pulse Survey that the primary reason almost a third of consumers visit retail places is to engage directly with products and brand experience.

This underlines the continued importance of focusing on the quality of commercial environments, and indeed seeking to enhance their attractiveness to those looking for escapism and fun.

For brands this is about the development of experiential formats, and integrating elements of entertainment, art, and technology to create immersive spaces. For designers, owners, and managers of commercial places, this is about the incorporation of playful spaces focused on storytelling and creative messages, spaces for events, installations, and unique experiences. The end goal being to create places and delightful distractions that leave a meaningful impact, improve brand perceptions, and deliver better customer experiences.

Polarisation: Navigating social and political identities
In 2024, elections will impact over half the world’s population, potentially changing economic and political priorities at the macro level. Indeed, at the human level, political and social issues have been polarising people for some time, and this is likely to be a continuing feature of 2024 and the years ahead.

With political and social issues increasingly influencing consumer identities, commercial spaces must navigate this polarisation carefully.

Commercial spaces have a major role to play in creating places for people to live, shop, work, and play, and conduct their daily lives. We are likely to see greater emphasis on how spaces can be designed and adapted to foster inclusive environments that respect diverse viewpoints.

For example, this may include curating tenant mixes that align with inclusivity and social responsibility, as well as positioning retail spaces as community-centric and socially aware, to appeal to a broader consumer base.

Gen Alpha: preparing for the next wave of consumers
Gen Alpha (those born in 2010 and onwards) is emerging as a consumer force. While the oldest amongst them are just teenagers, this group is the first to grow up in an entirely digital world, and they are seen as both unusually socially aware, and becoming consumers quicker than preceding generations.

The needs of Gen Alpha are increasingly reflected in the household decisions of millions of families, typically led by millennial parents.

2024 is the year designers and managers of commercial space need to start understanding how to cater for them. It will require a dual focus on technology and family friendly propositions.

This is a group more likely to engage with retail environments that prioritise elements such as digital experiences and interactive displays. However, it will also mean offering family-friendly amenities and creating safe, interactive spaces that appeal to both children and their equally tech-savvy parents.

Value hunting: balancing cost and quality
As economic uncertainty and inflationary pressures influence consumers into 2024, we can expect to see a continued impact on spending behaviour.

Our global research in 2023, revealed some dramatic impacts. For example, 22% of consumers suggested they are generally cutting down on retail spending, while another 20% said they are switching to cheaper and better value products.

However, we predict that this drive for value may be tempered by less willingness to compromise on quality in the long run. We have already detected this behaviour in China and India where 22% of consumers said they are more likely to respond to cost of living pressures by purchasing higher quality products that last longer, rather than cheaper disposable items.

Overall, we may see a rise in savvier shopping behaviours, with people maximising the use of mechanisms such as loyalty schemes and deal hunting to get the best results.

From the perspective of physical space, the answer lies in balance. While we have made the case for experiential and new forms of retail space, there will continue to be a very real need for functional retail places.

The task for owners and operators will be to achieve a balance between value and quality, which may lead to further innovations such as integrating online brands that resonate with value-conscious consumers or optimising spaces to accommodate flexible retail setups to attract a broader range of tenants and customers.

AI Integration: Personalising the shopping experience
This wouldn’t be a top trends article if we didn’t mention the rise of AI.

It has already been clear from 2023 that AI's role in retail is expanding, offering unprecedented levels of personalisation in customer journeys and experiences.

For the designers and managers of commercial space this will mean greater focus on integrating infrastructure that supports AI technologies. Properties equipped with advanced data analytics capabilities, robust Wi-Fi, and IoT (Internet of Things) connectivity will be more attractive to tech-forward retailers. These technologies can be used to gather customer data and in-store behaviour, tailor shopping experiences, manage inventory efficiently, and even control environmental aspects like lighting and temperature for optimal shopper comfort.

However, there is a growing counterpoint to this trend, which is important to recognise. There is some evidence of a push back towards more human interaction in retail, as shown by UK supermarket chain Booths’ decision to remove self-service tills as customers have become weary of automation.

A call to action: we want to hear from you!
Over the coming months we will release further insights from our Global Pulse Survey and will investigate some of the trends covered in this article.

However, is there a hot topic you think Pragma should investigate in 2024?

If there is, you can follow this link to tell us about it

James Miller