In January, we (like many others) suspected the nation was facing a recession. While we haven't seen a full-blown recession to date, when we look at our first-party consumer transaction data, we are seeing that retail spending has decreased as a percentage of overall spend, while grocery and fast-food spending has increased as a percentage of overall spend. This data could point to many factors, but I suspect the primary culprits are inflation and consumer confidence. Consumers are cutting back on non-necessities and looking for ways to save money, creating a strain on traditional retailers while benefiting everyday spend merchants.
Founder & CEO, Kard
The retail landscape is changing rapidly with the elimination of marketing tools/techniques i.e. third party cookies for tracking and consumer privacy concerns to name just two. Brands are struggling with effective strategies for personalizing engagement for consumers who are demanding a personal experience both online and in person. The change in landscape requires brands to develop new strategies and tools that leverage data to understand frequency of visits in store/online, duration, demographics, buying journey and patterns. There is intense pressure to more efficiently and effectively understand and engage the customer to deliver secure and connected digital experiences that drive revenue.
Providing more efficient and effective customer service continues to shape the industry and challenge retail/consumer good leaders. In a world where a 5% increase in customer retention can result in a profit increase of 25% to 95%, leaders are working to use data to be more keenly aware of the behaviors, engagement channels, and expectations of customers both in their retail and online experiences. Ensuring a seamless experience in an omnichannel environment is no longer a “nice to have” it is a necessity from the customers perspective. This is impacting every aspect from delivery, pick-up to support and returns.
CEO and Co-Founder, Lean Solutions Group
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