Continuous transformation, driven by AI advancements, economic uncertainty, and digitalisation, has deeply impacted all facets of the retail industry. Retailers are responding by adopting new strategies to meet evolving consumer expectations. This includes leveraging AI and automation to boost efficiency and reduce costs while offering optimal value. Moreover, there is a shift in promotional activity towards retail media networks, as well as a growing focus on sustainability.
This report comes in PPT.
With a greater emphasis on sustainability in retail, government legislation – especially in Europe – is progressing towards establishing a clearer framework for sustainability reporting. This move is anticipated to enhance transparency and accountability and reduce instances of greenwashing.
Amid global political tensions and economic uncertainties, consumers prioritise affordability, seeking brands and retailers that offer the best value. This reflects a shift in consumer mindset towards cost-conscious consumption, prompting retailers to adjust strategies by innovatively deploying pricing and promotional tools and reassessing offerings.
Retailers are under pressure to innovate and adapt to meet consumer demands while also enhancing profitability. A significant focus for many retailers is reducing operational costs. In light of this, automation has become essential across various retail operations, offering real-time data-driven insights and improving overall efficiency.
In 2023, three out of four retail professionals invested in retail media networks. These networks utilise retailers’ first-party customer data to deliver relevant offers to consumers across digital and physical channels, enhancing engagement. Retail media networks presents an opportunity for retailers to display branded ads across various touchpoints, fostering innovation and collaboration between brands and retailers.
Generative AI is revolutionising retail by enhancing shopping experiences, from pre- to post-purchase interactions. Retailers are increasingly using generative AI to improve customer service, streamline content creation, personalise marketing, predict demand, and optimise inventory. This adoption enhances the shopper journey, fosters loyalty, and boosts sales.
Retail is the sale of new and used goods to consumers from a business for personal or household consumption from retail outlets, kiosks, market stalls, vending, direct selling and e-commerce. Retail is the aggregation of Retail Offline and Retail E-Commerce. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts. Also excludes fuel sales, foodservice sales, rental transactions, and wholesale sales (e.g. Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retail also excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, i.e. retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer that is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retail.
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