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Volatility and disruption are the new norms and retailers need to manage this constant flux and look at opportunities to differentiate in a rapidly changing consumer market, according to a panel at World Retail Congress, Berlin, this morning.

“It is no longer about volatility, but less predictability about the future. Historically you could forecast what growth looks like but that’s no longer the case. Also, wallets are getting thinner, especially in Europe but also in Asia Pacific and the US,” Ingka Group Chief Digital Officer Parag Parekh said.

Looking to how consumers are changing, and the development of immersive experiences, he added: “Consumers are moving away from transactional but help me solve a problem. That’s one of the biggest shifts and we’re trying to figure out how to use AI for this.”

It was a point taken up by ELC President, EMEA & Emerging Markets Nadine Graf, who said that not only the scale of change but the pace was what is defining the market.

“We are truly in a moment where power is being redistributed very clearly to the consumer. We believe consumer centric approaches have to be truly embedded, because consumers are thinking in experiences,” she said of the health and beauty sector.

“You need to be able to act at the speed of the consumer, so scale and size won’t make you win but speed will,” she said. “I believe the customer of 2030 is already here. We are moving from managing channels to managing experiences. It has to be very personalised, so we do a lot of social listening, use AI and data. But the insight alone will not give you an advantage.”

Tendam Chair and CEO Jaume Miquel Naudi added that “business as usual” had changed and the backdrop to retail has become about disruption across supply chains and with “conflict everywhere.”

He added: “So you have to fix it. We have to look at the opportunities. For example, using AI to be more efficient and to save costs. Also, if the offer is right, to create differentiation.”

Miguel added that while no one knew for sure with AI where we it is going, he believed that in an environment of fake information, truth will be what people are seeking.

“For omnichannel we are currently at the point where it is still a kid’s toy, while we also know that going forwards people will only be prepared to pay less,” he reflected.