Adapting to economic pressures without sacrificing CX - a practical play book for retailers

This article is provided by BRC Associate Member, IP Integration.

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The retail sector is no stranger to change, but today’s macroeconomic pressures are creating a level of uncertainty that few can ignore. Rising costs, shifting consumer behaviour and unpredictable demand are putting retailers under immense strain, with leaders increasingly focused on how to adapt quickly while protecting margins. Indeed, industry research suggests that UK retailers will be hit with an additional £5.6 billion in costs throughout 2025/26. At the same time, customer expectations show no sign of easing – if anything, the pressure to deliver fast, seamless and consistent experiences has only intensified.

Balancing these competing demands is now one of the biggest challenges facing the industry. With this in mind, how can retailers continue to thrive in a tougher economic environment, while still delivering the customer experience (CX) that keeps shoppers loyal?

1. Adapt to macroeconomic pressures with agility

Economic volatility is reshaping the way retailers plan and operate. Both rising costs and supply chain challenges are forcing leaders to think beyond their immediate area of control. It is no longer enough to focus on one part of the business in isolation; organisations need a holistic view of how market pressures affect not only customers, but employees and overall operations too.

Flexibility has become critical. Retailers must now be able to scale volumes up or down quickly, respond to changing consumer sentiment and manage costs more tightly. This is leading to renewed interest in solutions and models that build resilience into day-to-day operations. For example, automation tools that ease the burden on support staff.

Ultimately, navigating macroeconomic pressures is about finding efficiencies without eroding service quality. That balance is what will separate retailers who merely survive from those who thrive.

2. Harnessing technology to work smarter

Technology is central to how retailers can adapt effectively, whilst also ensuring stellar CX for customers. For example, automation and AI-enabled tools are already helping Contact Centres manage unpredictable call volumes, reduce repetitive workloads and free agents to focus on higher-value interactions. The result is a more efficient operation, as well as a more consistent experience for customers.

But automation is just one piece of the puzzle. Data-driven insight, powered by advanced analytics, is enabling retailers to better understand demand patterns and customer behaviour, not to mention employee needs. For example, analysing spikes in Contact Centre queries during specific promotional periods can help retailers predict future peaks and adjust staffing accordingly. Similarly, customer sentiment analysis across social channels can highlight dissatisfaction with delivery times or product ranges before it becomes a wider issue. Armed with this intelligence, retailers can take proactive action, whether that means tailoring communications, adjusting inventory, or offering personalised promotions that encourage loyalty. These insights feed into smarter staffing for retailers, which in turn leads to a more proactive service, and ultimately stronger customer loyalty as a result.

Crucially, investing in technology should not be seen purely as a way to cut costs – although efficiency gains are a natural by-product. It is about creating scalable, future-ready platforms that allow retailers to flex as conditions change. Those who view technology as a strategic enabler rather than a tactical fix will be best positioned to ride out economic turbulence.

3. Leveraging retail’s unique customer touchpoints

If there is one advantage retail holds over many other industries, it is the breadth of customer touchpoints. Unlike sectors where engagement is limited to a website or Contact Centre, retailers can meet customers across an entire ecosystem: online platforms, social media, in-store experiences, Contact Centres and even field teams.

This breadth provides more than just multiple ways to serve customers. It creates a powerful feedback loop. Every interaction generates insight into customer preferences, sentiment and expectations. These are insights that can be used to refine products, and anticipate future needs, helping retailers respond proactively rather than reactively in a competitive marketplace.

For retailers willing to integrate these touchpoints effectively, the opportunity is significant. A joined-up view of the customer journey not only improves service consistency but also strengthens brand loyalty at a time when consumers are increasingly discerning about where they spend.

4. Building resilience through trusted partnerships

While technology and customer engagement strategies are vital, they cannot operate in a vacuum. Retailers also need the right partnerships to underpin resilience. From outsourcing providers that deliver flexible resource models, to technology partners that ensure platforms are deployed and optimised effectively, collaboration is now a strategic necessity.

The most effective partnerships go beyond transactional support. They provide retailers with ongoing guidance, innovation and operational efficiency - enabling businesses to stay agile as conditions evolve. By working with trusted partners who understand the nuances of retail, organisations can unlock efficiencies, reduce risk and strengthen their ability to deliver exceptional CX. Ultimately, the right partnership helps retailers balance cost pressures with customer needs, ensuring they can adapt rapidly without compromising on service quality.

Thriving through change

The macroeconomic environment may remain uncertain, but retailers are not powerless in the face of these challenges. By embracing flexible operating models, investing in the right technologies, making the most of customer touchpoints and leaning on trusted partnerships, the sector is well positioned to adapt and thrive.

Change is inevitable. But with agility, insight and collaboration, retailers can transform today’s pressures into tomorrow’s opportunities, and deliver the exceptional customer experiences that will define long-term success.