Retail in Review – November & December: 2024 Preparations Begin
As the year draws to a close, retailers cast their eyes onto 2024. The past couple of months have been incredibly busy, with ongoing festive chaos and wider preparations for the new year. While the beginning of the holiday season showed significant consumer resilience, customers’ shopping behaviors continue to evolve.
In our latest Retail in Review blog, we take a look at some retail news, and how November and December have impacted the retail industry…
Solid Start to the Holidays
In our last Retail in Review blog, we discussed how retailers were busy preparing for the festive hype with the holiday season being a hot topic in the build-up to winter. The festive shopping season began in strong form.
Black Friday generated a record $9.8 billion in U.S. online sales, showing clear signs that shoppers are willing to spend. In fact, overall retail sales in November unexpectedly picked up with lower gas prices allowing consumers to ease their pursestrings and spend more, according to Bloomberg. The rise in sales has clearly boosted the morale of retailers who have been making significant efforts to capitalize on the shopping peak.
Amidst this festive chaos, brands continue experimenting with artificial intelligence (AI) to enhance the customer experience. Mastercard has rolled out a generative AI tool that acts as a personal assistant for shoppers and makes personalized recommendations.
Evolving Consumer Preferences
The ability to try products physically remains significantly valuable. According to McKinsey, 85% of customers expect to purchase at least one item in-store in the 2023 holiday season. However, over the past couple of months, shoppers have started to lean on online sales channels, with convenience being the key driver. In fact, consumers have a high intent to purchase online in 2024. Gearing up for the anticipated online boom, Google Pay has teamed up with Affirm to make buy now, pay later (BNPL) options available for online and mobile payments in the U.S. next year.
Moreover, retailers who want to attract customers in-store, need to offer them something they can’t get online. To deliver an exclusive shopping experience, Zalando has launched invite-only shopping for limited products. This provides a great opportunity for customers to enjoy exclusive shopping experiences.
In order to drive in-store footfall, retailers can also offer exciting and personalized offers that customers can’t resist. Better prices and promotions are more important to customers this holiday season, according to McKinsey. In fact, customers purchase and pay more attention to ads for products that are on sale. Retailers who use real-time customer data to personalize their promotions based on individual customer needs can set themselves apart from the competition.
Preparations for 2024 Begin
As we approach the hectic end of the festive season and 2023 alike, retailers are eyeing their 2024 strategies. From teaming up with reliable technology providers to investing significantly in upgradation and growth, brands are levelling up to live up to evolving consumer expectations in the next year.
Walmart has invested over $500 million to upgrade 117 stores and will devote more than $9 billion over two years to modernize over 1,400 stores across the U.S. These upgrades will include better layouts, products and technological improvements to enhance the shopping experience for customers. Meanwhile, sporting goods retailer, Innovasport, has announced its partnership with Teamwork Commerce, deploying over 2,000 POS terminals over 250 locations across Mexico. These technological advancements only indicate the increasing adaptability of brands that are keen to attract customers in-store.
In spite of a challenging year for the retail industry, retailers seem to have a positive outlook for 2024, with a number of brands announcing growth plans. Uniqlo is set to drive growth with plans to double its current store openings in the US and Canada, with more than 20 new locations set to open in 2024. Ahead of stepping into 2024, Shein has confidentially filed for an initial public offering (IPO) in the US and could begin trading on public markets as early as 2024.
As the curtains fall on 2023, the retail landscape of 2024 awaits exciting transformations. Those who can constantly evolve themselves leveraging the latest technological innovations will thrive in the market.
Looking to revamp your technology stack to grow in 2024? Get in touch today!
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