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Trends Transforming The Retail Industry Outlook in 2023

The retail industry – be it offline or online, has grown considerably over the years, and in 2019 stood as one of the biggest grossing and rapidly growing industries worldwide. Despite the challenges the retail industry faces, with billions of worldwide consumers, retail has grown to become a massive player in almost every way. The enhancement and improvement of this industry have only added to the success that it has managed to achieve. The transition to e-commerce industries and online retail spaces has enabled brands to reach their maximum potential and has enabled them to sell their products to a much wider range of customers all over the world. Through the process that the retail industry has been making, several trends have changed how this industry works and influenced the overall development that the sector has experienced.

Top Trends In The Retail Industry

1. Sustainability

One of the first things that brands have been trying to incorporate in 2019 has been the growth of sustainability. More and more brands are trying to find ways to have the least harmful environmental impacts, and more brands realize the importance of incorporating their processes in a more sustainable manner.

2. Newer Store Concepts

The number of stores opening up is immense, making the competition fierce. Stores are constantly trying to find ways to come forward with newer concepts to stand out to the masses and seem more attractive. This incorporates the entire package – right from storefronts to in-house experiences. The entire experience that a customer is given has now become crucial to the success of a retail store.

3. Personalized Experiences

While a customer’s experience is important for a business’s success, many brands are now moving in a direction wherein they offer personalized experiences. Tailoring an experience to the customer generates a sense of goodwill and makes customers feel more welcome, which is why this trend has been growing rapidly worldwide.

4. DTC Success

Direct to Consumer has been a trend that is growing rapidly all over the world. This is the increase in digital retail stores and e-commerce markets. Direct-to-customer businesses are built on the premise that the brand must communicate with the customer to help them reach their maximum interest.

5. Private Labels

Private Labels are growing more with every passing day because of the ease at which they can be set up and the access they already have too large audiences due to online marketplaces. E-commerce-related investments have grown considerably over the years. More and more brands are looking to establish themselves as private companies because of their immense investments.

6. The Retail Apocalypse

While brick-and-mortar stores might have been the go-to solution for an incredibly long time, the fact remains that this is experiencing somewhat of a downfall. The number of brands choosing to let go of their physical stores in favor of online marketplaces is enormous, leading to something economists are now referring to as the retail apocalypse.

7. Lesser Bankruptcies

Over the last few years, several retailers have declared themselves bankrupt as a result of the severe economic situation that we were in. 2019 is a brilliant year for retailers because of the positive growth experienced within this sector. A lesser number of companies declared bankruptcy in 2019 than the previous year’s ratios.

8. Loyalty Rewards

Loyalty programs have grown in popularity, and more and more brands are looking to incorporate these programs with their customers. Most brands are now offering services to customers that enable them to get access to certain privileges for a small fee or a certain amount of purchases. These programs also offer attractive discounts, which is why it is so sought after by individuals who regularly purchase what the store has to offer.

9. Tech Shopping

E-commerce is, without a doubt, the go-to place for anyone who wants to shop because of the ease at which one can access a vast sea of brands at competitive prices. Whilst there is enormous growth within this sector, the technology that operates these e-commerce marketplaces is now smarter and more efficient than ever.

10. Ever Growing E-commerce

The trend of developing into an e-commerce marketplace is not reserved for the big names. Even smaller brands are opting to go for the e-commerce route instead of other options because of the wider access they get to customer bases, the extensive number of options that it opens them up to, and the cost-effectiveness at which they can run their entire business.

Retail Industry Stats and Growth Projections in 2023

While understanding emerging trends is important for anyone within the retail industry, it is also important to understand the statistics behind them. Figuring out the important statistics and which have the most impact can be quite daunting, especially for someone who is fairly new to this industry and wants to understand its intricacies. The statistics showcased here have been gained from notable organizations studying the market scenarios and trends making their way to mainstream retail. Here are the top ten statistics of the retail industry for 2019:

1. Preference for Brick And Mortar Stores

Undoubtedly, e-commerce is the way to go in the retail industry. The number of brick-and-mortar stores is slowly dwindling with the number of brands choosing to move to online marketplaces. A recent study showcased that 49% of Americans would choose to shop in a brick-and-mortar store, with the rest stating that they prefer to shop online.

2. Rate Of Shopping In-Store

One of the biggest reasons people like to shop in-store is that customers can get a feel of the product, try it on for themselves, and see how they like it. The rate of customers shopping in-store was around 56%, out of which most of them stated that the main reason for this was the ability to try on a piece of clothing they liked or get a feel of an item they were looking to buy.

3. Decline Of Retail Stores

Over the past few months, there has been a startling decrease in the number of retail stores, which is decreasing rapidly. During the past few months of 2019, the number of retail stores in the United States alone has decreased by an estimated 15%. Most of this percentage of retailers are doing so in favor of online stores and marketplaces.

4. Retail Stores As A Pre Trial

One of the bigger reasons brick-and-mortar retail stores are still a choice for customers is the option to try something before buying it. Often, customers want to look and feel the product for themselves. They often want to operate this product to see if it works well for them and is something they would be interested in. Nowadays, most retail stores serve as a place for customers to try something out before purchasing it online. The percentage of this is almost 50% of all customers who visit these stores.

5. Price Comparisons

A large number of brands tend to offer different prices offline and in-store when it comes to their products, and this is something that affects how people shop. More than 2/3rds of customers believe in checking the prices of goods online before actually going into a store to buy them.

6. Tracking Store Traffic

Even though in-store traffic is still important to retailers, the number of people visiting the stores is not tracked regularly. About 25% of stores tend to track the number of people entering the stores and the overall store traffic. Most retailers don’t find this statistic relevant enough because of the decline in physical retail stores.

7. Integration Of Offline And Online Mediums

An incredible 84% percent of customers believe that retail brands should look for ways to integrate offline and online mediums to provide a heightened level of service to customers. Customers want to engage with the brand more and see this as one of the best ways to enhance that service.

8. Millennial Shopping

67% of Millennials see online shopping as their preferred means to buy something rather than opting for an online store where they can see or feel the clothing. This customer audience also denotes one of the largest sections of customers for the online retail industry.

9. Rate Of Online Purchases

The rate at which millennials shop is also worth considering when considering any retail statistics. Millennials spend almost 50% more time shopping online as compared to individuals belonging to Gen X.

10. Video Engagement

Delivering quality content has become vital, even for brands that want to reach audiences on a massive level. Many individuals believe that video engagement is important for a brand, and 73% of customers believe that they are more likely to purchase a product or go in for a service if they see it being used in a video or see it being used by a celebrity or an influencer.