Consumer Trends Impacting Retail in 2024

Another year has passed! And what a year it was. From Rihanna announcing her second pregnancy in the middle of her Super Bowl performance to a new Rolling Stones album nearly 60 years after their debut record, 2023 had it all.

In between, we’ve had so much to digest. No one would have had ‘Gwyneth Paltrow mic dropping a retired optometrist over a skiing collision’ on their 2023 bingo card. Jack Black sang about Peaches, King Charles III was coronated, generative AI convinced the world that Pope Francis struts around the Vatican in a white puffer jacket, and Barbenheimer took the film world by storm.

Finally, we can’t finish reminiscing about 2023 without mentioning Time’s Person of the Year, Taylor Swift. From topping charts and the box office to dating Travis Kelce and seeing the year out in a photoshoot with her cat; there wasn’t really much Taylor Swift didn’t do this year.

As we step into 2024, pop culture will undoubtedly throw another few curveballs to the world over the next 12 months. However, in a slightly more predictable space, shopping habits continue to evolve in response to current affairs – and the retail industry is steadily preparing, ready to cater to their customers’ ever-changing demands.

In this blog, we’ve outlined 6 consumer and retail trends to watch in 2024. Let’s dive in.

Human Touch

2023 saw a boom in AI (Artificial Intelligence) from a consumer perspective. While the technology has been developing gradually in the tech world for years, generative AI brought it to the masses (remember Pope Francis’ jacket?). According to Survey Monkey’s AI in the Customer Experience report, 90% of consumers prefer to receive customer service from a human rather than a chatbot, with 61% claiming that humans better understand their needs than their technology counterparts.

As retailers look to introduce AI to their shop floor operations, consumers will still crave a more human shopping experience – specific human skills and emotions that can’t be replicated by a computer.

Nothing beats a welcoming smile when being greeted in-store. Technology deployment is important in retail, but not as important as the people that bring the business to life. 

A New Spin on Value

Today’s consumer wants quality – but in new ways. Traditionally, the term might have referred directly to reliable, high-quality products themselves. However, in today’s environment, ‘quality’ extends beyond the product itself.

Consumers today see quality in convenience and flexibility – and anything that can make their life easier. In fact, Numerator finds that a whopping 82% of shoppers believe that convenience is either extremely or very important for them. For a retailer, this might be a case of providing a range of fulfillment options, such as same-day delivery or Buy Online, Pick-up In-store (BOPIS). It could also be as simple as providing a seamless in-store experience – from greeting through to the checkout.

Interestingly, even in the current economic climate, consumers seek, and are willing to pay for this additional ‘quality’ in online shopping and physical stores. They crave value at every opportunity.

Promotions Galore

The ‘quality’ conversation introduces our next trend: promotions, offers and discounts. It is no secret that we are in a cost of living crisis. While shoppers might be willing to pay for better quality and convenience, they are still shrewd with their purchases, and have a higher appetite than ever for a great deal.

Outside of Boxing Day Sales, Amazon Prime Day and Black Friday, retailers in 2024 should pay specific attention to the promotions they run. Running promotions en-masse might seem effective, but in order to reach customers on a personal level, deliver value through interactions and develop strong relationships. Undoubtedly, curating offers on an individual basis, tailored to each shopper and their preferences, can go a long way to driving retained business.

Still Keen for Green

A popular trend within retail for a few years now, sustainability remains high on the agenda for consumers. According to PwC, 70% of consumers are willing to pay more for sustainability sources goods, making this characteristic crucial when making purchasing decisions. 2023 saw fast fashion come under fire on a number of occasions, and with e-commerce initiatives gaining momentum with both consumers and retail brands alike, work is clearly being done across the industry for businesses to become more environmentally friendly.

With that said, it isn’t enough to simply tweak a few practices on the shop floor and fool customers. The supply chain is equally – if not, more so – important in improving sustainable practices, and consumers recognize the value in minimizing waste and optimizing both manufacturing and transport practices.

Social Commerce

Social commerce entails utilizing social media platforms as channels for both customer acquisition and sales within digital commerce strategies. Social commerce is a branch of e-commerce that, despite growing hype for its use over the last few years, hasn’t really taken off in the West yet. Taking inspiration from Asia, where WeChat’s retail success acts as the perfect case study for social commerce’s value in society, a number of brands are beginning to find ways to roll out a social commerce offering.

The popularity of apps such as TikTok, Instagram and WhatsApp, combined with today’s streamlined mobile payments, is now beginning to turn the wheels of social commerce for several retail brands. The market size of the up and coming branch of e-commerce currently stood at approximately $2.4 trillion according to Global Data. Of course, eastern influence carries much of the load on that number, but as wider adoption across the planet continues, the market is expected to reach $11.1 trillion by 2030. Keep an eye out for its potential boom in 2024.

Into the Future

It isn’t news that consumer demands dictate the tempo of the retail industry. As consumers expectations grow, retailers must keep in-tune with any implementations that affect the supply chain, marketing strategies, technology, and other relevant areas. Today’s customer wants to feel special, and they crave simplicity. Whether adding a personal touch in-store, providing a range of fulfillment options for their convenience, or simply demonstrating eco-friendly credentials – the little things can make all the difference in 2024.

As we gear up for Super Bowl LVIII, it’s time to delve into the excitement surrounding this monumental occasion. From the game itself to the halftime show and everything in between, let’s dive into the trends, statistics, and how Teamwork Commerce can elevate the stadium retail experience. 

Gear Up for Gridiron Glory

Mark your calendars for February 11th at 6:30 p.m. ET, as Allegiant Stadium in Paradise, Las Vegas, plays host to Super Bowl LVIII. This year’s matchup features the San Francisco 49ers taking on the reigning champions, the Kansas City Chiefs. With both teams vying for victory, anticipation is at an all-time high.

From Anthem to Halftime Show: The Ultimate Entertainment

Prepare to be captivated by a star-studded lineup of performances. From Reba McEntire’s stirring rendition of the national anthem to Post Malone’s soulful rendition of “America the Beautiful” and Andra Day’s powerful rendition of “Lift Every Voice and Sing,” the pre-game festivities promise to set the stage for an unforgettable showdown.

Amidst the anticipation, fans and music enthusiasts alike are eagerly awaiting any hint or confirmation regarding Taylor Swift’s potential involvement to support her boyfriend Travis Kelce as he performs with the Kansas City Chiefs team. And let’s not forget the halftime extravaganza, headlined by none other than eight-time Grammy winner Usher.

Betting on the Big Game

According to DraftKings, the 49ers are currently favored by 2 points over the Chiefs. With the moneyline standing at -125 for the 49ers and +105 for the Chiefs, sports enthusiasts are eagerly awaiting the outcome of this highly anticipated matchup.

Fanfare and Festivities: Super Bowl Consumer Spending

The latest data from NRF and Prosper Insights & Analytics reveals that a staggering 200.5 million U.S. adults plan to tune in to the Super Bowl, with total spending expected to reach a record-breaking $17.3 billion. From food and beverages to apparel and decorations, Americans are pulling out all the stops to make this year’s Super Bowl festivities truly unforgettable.

The Teamwork Advantage: Redefining Stadium Retail

With Teamwork Commerce cutting-edge omnichannel backend and flexible POS system, we’re empowering retailers to deliver seamless, personalized experiences to their customers.

We understand the unique challenges of stadium retail, from fluctuating demand to fast-paced environments. That’s why our solution is designed to adapt to your needs, providing unparalleled flexibility and reliability. With real-time inventory management and integrated payment processing, Teamwork Commerce ensures that every transaction is smooth and secure.

Streamline Your Super Bowl Shopping with RFID Self-Checkout

Imagine this: you’re at the Super Bowl, surrounded by the excitement of the game. As halftime approaches, you decide to grab some souvenirs. Instead of waiting in long lines at the shop, you breeze through our RFID-Powered Self-Checkout system. With automatic scanning of all items and enhanced security features, our self-checkout technology ensures a seamless and efficient shopping experience, allowing you to get back to the action on the field in no time.

With Teamwork Commerce’s RFID solutions, retailers can significantly enhance the number of transactions completed during operating hours, optimizing checkout times without sacrificing accuracy or security.

Unparalleled Fan Experience

At Teamwork Commerce, we believe that every fan deserves an unforgettable experience. That’s why we’ve developed innovative solutions to streamline the stadium retail experience and create lasting memories for attendees. From mobile POS devices to reliable hardware and seamless integration, we’re dedicated to making your experience truly exceptional.

Elevate Your Game-Day Experience

Whether you’re cheering on your team from the stands or hosting a watch party at home, our innovative solutions are designed to enhance every aspect of the game-day experience. So sit back, relax, and let Teamwork Commerce handle the rest.

Originally posted in PCR Magazine January – February 2024 

Amber Hovious, VP of marketing and partnerships at Teamwork Commerce discusses how to balance online and brick-and-mortar retail operations in 2024.

According to a survey by Bank of America, 42% of customers intend to spend more online over the next 12 months, with convenience being the key driver. The trend seems to be already in action, with 2023’s Black Friday weekend generating $38 billion in online sales, indicating an increase in online shopping. Meanwhile, there was also a significant consumer appetite for in-store shopping experiences. According to McKinsey, 85% of customers planned to purchase at least one item in-store in the 2023 holiday season.

The ability to try products physically remains significantly valuable. While one sales channel may outpace the other in the shortterm based on consumer preferences, both online and offline fulfilment are crucial for retailers to thrive in today’s environment – where consumers demand convenient experiences that best suit their evolving needs. Retailers need to be able to effectively manage operations across both brick-and-mortar and e-commerce.

The Balance between Offline and Online: Why is it Important?

Today, customers have unique needs and diverse shopping preferences. Some favour the ease of purchasing online, while others place a higher value on the tangible experience of shopping instore. Simultaneously, there exists a segment of shoppers who embrace hybrid shopping models where they browse online and make purchases in-store. In fact, an anticipated 53% of UK consumers plan to conduct online research before making any major purchases in 2024.

Whether to deliver convenient and seamless shopping experiences or to maximise sales, having an appropriate presence over both offline and online platforms is necessary. Relying solely on one channel can make a retail business vulnerable to potential disruptions. Finding the right equilibrium between offline and online is critical. Ensuring a balance between channels can help retailers cater to their customers’ diverse needs.

Amid ever-changing trends that influence both online and offline realms, the right balance between offline and online can help retailers swiftly adapt to market trends, allowing them to stay relevant and competitive in the face of changing consumer preferences. Using a blended approach, retailers can have access to multiple touchpoints that help them engage with customers, gaining increased opportunities to win consumer loyalty. It also allows them to diversify their risk. For instance, during Covid-19 retailers with a strong online presence continued to serve customers even when physical stores faced restrictions.

To strike the right balance between their offline and online channels, retailers must create a frictionless omnichannel environment for their customers, allowing them to browse online, make purchases, and even return or exchange items in-store. This integrated approach can significantly improve overall customer satisfaction. The key lies in integrating physical stores with online platforms to create a unified shopping environment.

Brick-and-Mortar and Online: The Need to Connect the Two

There is no denying that omnichannel retail has taken the industry by storm. However, there is significantly more that needs to be done by retailers to capitalise on opportunities provided by the omnichannel boom. Retailers must connect their physical stores with online sales channels to boost visibility for their customers and themselves alike. If the customer has ordered an item using the Buy Online, Pickup Instore (BOPIS) service, they should be able to track their order in real-time. This helps shoppers confidently walk into the store knowing exactly whether their order is ready for pickup, eliminating any guesswork.

Weaving their physical stores with their online platforms in real-time, retailers can deliver a unified and consistent experience across all touchpoints, maintaining an omnichannel synergy. Shoppers can research products online, make purchases in-store, and use online services for post-purchase support, creating a cohesive and positive overall experience.

Retailers can deploy an all-encompassing retail solution that demonstrates a great user interface and is well-integrated with wider retail solutions such as inventory management, customer relationship management (CRM), point-of-sale (POS), order management and clienteling.

By managing their entire retail ecosystem from a single software, retailers can have more real-time visibility of their business. They can gather more comprehensive data on customers’ shopping behaviour, in-store inventory, warehouse stock, and online orders. Retailers can use this information to make informed and personalised decisions related to pricing and discounts. Retailers can also use real-time data to optimise their inventory, minimising overstocks and stockouts. This, in turn, enhances the overall efficiency of the supply chain and enables retailers to seamlessly adapt to the continually evolving preferences of consumers.

Consumer Preferences in 2024

Despite continued economic pressures in 2023, consumers demonstrated strong levels of resilience. However, the industry saw customers becoming considerate about their purchasing decisions. As 2024 unfolds, shoppers are likely to remain cautious about their spending which can make the market more competitive.

When it comes to shopping, physically trying items in-store and experiencing human interaction is an evergreen consumer preference. However, due to an influx of options available in the market, it is not easy to attract, and more importantly, retain customers. To stand out, retailers need to deliver unparalleled, convenient and personalised shopping experiences instore. From mobile POS to automated self-checkout, retailers can use a number of innovations to revamp their in-store shopping experience.

As retailers prepare to enhance the in-store shopping experience, they must not overlook the value of a seamless online shopping experience. According to forecasts, retail sales from mobile commerce in the UK are expected to surpass the £100 billion mark by 2024. As a result, retailers must streamline their mobile purchasing process to reduce shopping cart abandonment and ensure a frictionless customer experience.

Whether shopping in-store or online, sustainability is one of the key factors that will influence consumer preferences in 2024. According to Statista’s Consumer Trends 2024 report, sustainability and ethics are at the forefront of shoppers’ decision-making. In fact, ethical spenders will make purchases from eco-friendly brands even during challenging times. It is clear that sustainability isn’t just a buzzword anymore, and retailers need to act now.

Ultimately, driving sustainability is likely to be on par with providing high-quality shopping experiences. With growing cautious spending and the rise of conscious consumerism, delivering high value to the customer, sustainably, should be a priority for retailers to drive revenue and earn consumer loyalty. Those who can deliver top-tier omnichannel experiences sustainably can well cater to evolving consumer preferences in 2024.

Originally published on: Forbes

The growth of e-commerce and the development of multiple new sales channels might have created convenience for consumers when it comes to shopping, but they can just as easily create operational complexity for retailers, who are keen to deliver seamless shopping experiences. Today, retailers need to manage multiple platforms and technologies at once, and efficiently, to cater to consumer demands.

Managing several technologies across a retailer’s entire operation—from supply chain to shop floor—is not a typically simple task. Technologies that are not properly integrated can create several issues that arise from a range of factors, including slow updates, human error from manual data input and the use of outdated information. In a fragile chain of complex technology, it only takes one inaccurate piece of information to disrupt an entire ecosystem.

Retailers must take an all-encompassing approach to their technology stack—one that is connected at all touchpoints and operates seamlessly in real time. Importantly, this holistic approach to retail operations must be built on a foundation of robust, reliable and accurate technology. With an integrated technology stack, retailers can manage their entire retail ecosystem more effectively.

From efficiency and improved decision-making to the ability to deliver personalized shopping experiences, an all-encompassing approach to retail technology can help retailers manage operations effectively and provide services to customers that drive loyalty and long-term business success.

Boosting Supply Chain Efficiency

A competitive edge in the past, omnichannel experiences have now become a must-have expectation of shoppers, according to the 2022 Retail Personalization Index Retailer & Consumer Survey. This is also consistent with McKinsey’s analysis in 2021 that positioned omnichannel as “a requirement for survival” in the retail industry.

In order to facilitate omnichannel offerings, such as same-day delivery, buy online, pick up in-store (BOPIS) and buy online, return in-store (BORIS), retailers need a highly efficient supply chain. From delayed customer deliveries to poor replenishment practices that lead to out-of-stock items on shop floors, inefficient supply chain operations can damage customer loyalty.

Shoppers demand a fast and seamless experience that caters to their convenience. To win their loyalty and maximize sales, retailers need to maintain appropriate inventory levels across all locations and provide seamless order fulfillment.

Traditional supply chain practices require warehouse staff to manually track inventory movement. It results in a time-consuming process that is prone to human error and incorrect readings. As a result, retailers are provided with inaccurate and often outdated data. This can negatively impact retailers’ decision-making related to inventory, order procurement, stock distribution and reallocation. This can further result in unnecessary transportation, storage costs and poor replenishment, leading to out-of-stock items.

Equipped with a range of supply chain technologies that communicate in real time, retailers can gather relevant and accurate data that empowers them to make smarter decisions, faster. Integrating inventory and order management solutions within the same ecosystem, for example, can create real-time visibility of products, allowing retailers to make more informed decisions related to stock.

If an item is selling fast, retailers can identify it early and reallocate stock transport to ensure adequate replenishment. What’s more, with integrated order management, shipments can be automatically generated based on orders received from different platforms, allowing retailers to deliver products quickly and efficiently.

Top-Tier Customer Experiences

According to Statista, 94% of customers believe a positive shopping experience makes them more likely to shop with a retailer again. Convenient and tailored shopping experiences are not only crucial to boost consumer loyalty, but also to make shoppers spend more.

In fact, 80% of business leaders believe personalized shopping experiences can lead to increased consumer spending. However, 50% highlight that gaining access to accurate data to personalize shopping experiences is a challenge.

By connecting a range of customer-centric applications such as customer relationship management (CRM), clienteling and point-of-sale (POS), retailers can not only meet shopper demands but remain adaptable to their evolving needs. With each of these technologies operating together, retailers can gain access to a wide range of information at the touch of a button and deliver high-quality shopping experiences seamlessly.

From sizes to product preferences, CRM and clienteling software can allow staff to quickly access information and personalize each interaction they have with a customer. Integrating these technologies with a mobile POS application, all hosted on a tablet, retailers can tailor interactions with customers; provide exclusive discounts and personalized offers; and complete transactions in a streamlined and highly efficient manner.

Ultimately, this can significantly reduce the time customers spend waiting in checkout queues and improve the overall shopping experience. Customers leave the shop floor feeling valued, having received a bespoke and streamlined experience.

Leveling Up Predictive Analysis

To make the most effective decisions, retailers must take each area of their business into account. From warehouse racks to in-store shelves, retailers need to have clear visibility of their entire ecosystem in real time.

An all-encompassing approach to retail technology enables retailers to generate this visibility through automated reports such as monthly analytics, forecasts and recommendations based on historical data. This can help retailers make accurate predictions about consumer trends more effectively. For example, they can identify bestselling products around a specific event, such as Black Friday, and increase stock around those items to increase sales.

The Takeaway

With fastidious customers, tighter pursestrings and razor-thin margins impacting the retail landscape, the market is becoming increasingly competitive. Those who can make their operations highly efficient are likely to drive more profitability.

An integrated technology stack offers retailers a great opportunity to simplify their retail operations and manage them more effectively while providing a wider range of options for their customers. This allows them to remain flexible to changing consumer demands, future-proofing their businesses while also driving customer loyalty for long-term success.

Click here to find out more about how Teamwork Commerce can help your retail brand deliver strikingly accurate inventory

Customer Experience is Still King

Omnichannel, loss prevention, the introduction of AI and everything else demonstrated at NRF had one thing in common: the vast majority of it is designed to improve the customer experience, whether in-store or online.

Consumers continue to dictate the movements of the retail sector. Ultimately, they are the defining factor in any retail technology deployment and businesses are recognizing this. In 2024, following a couple of tough economic years for businesses and consumers alike, retailers must continue to cater to their customers in every way possible. If they don’t, they risk alienating consumers and losing out on their business to competitors.

A Big Year Ahead

2023 was a complex year for the retail industry. However, one of the biggest takeaways from NRF 2024 will be the renewed optimism and enthusiasm for the coming 12 months.

With a flurry of new technologies breaking through and a keen focus on delivering value in every deployment, retailers and their technology partners are looking to push innovation at every opportunity this year. We cannot wait to see how it all unfolds…

Want to transform your retail operations in 2024? Book a demo with the team today.

Originally published on: TotalRetail

Competition plays a huge factor in the retail industry. Operating in a highly saturated market, retailers must constantly work towards meeting their customers’ expectations quickly while providing a high-quality experience. With price and convenience being the two biggest factors affecting consumer purchase decisions, retailers must find ways to keep costs down while continuing to streamline their operations to create convenience at every touchpoint.

From handling customer inquiries and conducting transactions to processing online orders, streamlining retail operations not only generates a competitive edge but also empowers staff to deliver high-quality customer service. This leads to satisfied customers, increased sales, and stress-free employees.

Retailers can transform their business by streamlining practices across three key areas of their organization: supply chain, shop floor, and omnichannel operations. By creating efficient workflows that benefit both customers and staff, retailers can generate a significant advantage over their competitors.

Dealing With Demanding Shop Floors

Busy stores, demanding customers and staff shortages can quickly create difficult situations for retailers. Making sure customer demands are met quickly and efficiently should be a top priority. Not only does this reduce the risk of a chaotic shop floor, but it also plays an integral role in driving sales and retaining long-term customers.

Mobile point of sale helps tackle these challenges, enabling retailers to provide exceptional customer service even with a limited number of in-store associates on the shop floor. Compatible with mobile devices, even in offline mode, staff can conduct transactions from anywhere in-store, helping minimize queuing while increasing productivity. Importantly, customers can receive a high-quality service, receiving fast assistance for transactions and minimizing the amount of time spent waiting on the shop floor.

The Role of Inventory Management in Stock Visibility and Supply Chain Efficiency

Several retail challenges are rooted within the supply chain itself. One particular issue for many retailers is that they’re stuck with a poor view of stock, resulting from inaccurate inventory management. This leads to a range of issues, including waste, unfulfilled orders, and increased costs from transport and storage.

In order to drive operational efficiency, retailers must find ways to organize their stock management. With the right technology deployed, retailers can take control of their inventory and alleviate these ongoing challenges. Managing every unit on hand, retailers can create real-time visibility of stock that optimizes a retailer’s supply chain operations. It enables retailers to make better replenishment decisions, faster, while minimizing waste and minimizing transport and storage costs — improving sales opportunities and growing profits.

The Benefits of Effective Order Management Systems in Fulfilling Online Orders

An additional benefit of a streamlined supply chain and inventory management operation is that it sets a foundation that enables omnichannel fulfillment. However, there are few that do so effectively. The right order management system (OMS) can help retailers achieve that.

Investing in an OMS, which can support sales from any channel and create a seamless purchase workflow, can be directly connected to a retailer’s e-commerce platform, providing an automated solution to generate shipments. Orders can be placed from multiple locations and fulfilled from anywhere. Deploying an omnichannel offering allows customers to shop however they please. Equipped with a range of fulfillment options, such as buy online, pick up in-store (BOPIS), ship from store, and even buy online, return in-store (BORIS), customers are provided with a number of options that creates convenient experiences.

With a seamless transition between several channels, retailers can deliver high-quality customer service that nurtures relationships and creates loyalty.

The Retail Trifecta

Mobile POS, inventory management, and OMS are three key pieces of retail technology that, when deployed together, help deliver efficient retail operations and optimized practices across shop floor, supply chain and omnichannel operations. With these three technologies operating together in an all-encompassing approach to retail technology, retailers can also provide unparalleled customer experiences, creating strong customer loyalty and long-term business sustainability.