From the 16th to the 18th of October, US-based retail events organiser Shoptalk held its first ever Shoptalk Fall conference at McCormick Place in Chicago. The retail industry luminaries in attendance had the opportunity to mingle while attending a series of keynote sessions, panel discussions, and interactive experiences covering a wide range of topics – from generative AI and retail media to supply chain innovation and the digital transformation of stores. Euromonitor International was there, and we are delighted to report on some of the highlights.
The boom in retail media network market spending looks set to continue
On the first day of Shoptalk Fall, one of the conference’s most interesting sessions, “Seizing the Retail Media Opportunity without Sacrificing the Customer Experience”, focused on the growing importance of retail media networks. These retailer-operated digital advertising platforms allow retailers to monetise their digital assets – such as websites, apps, and in-store displays – by using them to provide advertising and marketing opportunities for brands.
In the wake of the COVID-19 pandemic, brands have proven to be receptive to the allure of retail media networks.
69% of professionals working for brand manufacturers believed that advertising on retail media networks allowed their companies to better target customers, while 43% believed that this type of advertising contributed directly to their companies’ incremental sales growth
Source: Euromonitor International Voice of the Industry: Retail Survey, fielded July 2023
As a result, over the last year, brands have assiduously increased their advertising spend directed towards retail media networks. This trend looks set to continue; based on data provided during the session by Kurt Staelens, senior managing director at FTI Consulting, total advertising spending funnelled towards retail media networks in the US is expected to more than double, to USD130 billion, between 2024 and 2028.
Euromonitor International Unveils the New Retail Reinvention Framework
The highlight of day one of Shoptalk Fall came courtesy of Euromonitor International’s Michelle Evans, global lead of retail and digital consumer insights. In her presentation, titled “New Insights on Unlocking Retail Growth”, Michelle explored how today’s retail landscape is being transformed by three interrelated forces: the advent of new business models, continued channel expansion, and evolving consumer expectations.
The rise of new business models demands particular attention. Rapid digitalisation has paved the way for a growing number of tech companies that originally hailed from outside the retail space – such as social media networks, streaming services, and gaming platforms – to jump into the fray, with many now competing directly with retailers for shoppers’ attention and spending.
One of the most prominent exemplars of this trend is ByteDance, the Beijing-based owner of social media platform TikTok, as well as its Chinese analogue, Douyin. Thanks to the appeal of their short-form video content, TikTok and Douyin have become two of the world’s most popular social media platforms. ByteDance has capitalised on this popularity by positioning TikTok and Douyin as retailers in their own right. Since first introducing retail features in 2020, Douyin, in particular, has emerged as a livestreaming e-commerce giant in its home market of China.
Online sales of beauty and personal care products on Douyin’s marketplace surged by 173% between the first six months of 2022 and the first six months of 2024, powering Douyin past Alibaba’s venerable Tmall marketplace to become the leading online retailer in the category in China
Source: Euromonitor International Passport: E-Commerce data
Leap promises to do for store-based retail what Shopify did for e-commerce
On day two of Shoptalk Fall, a session titled “Spotlight on Cutting-Edge Technology Solutions: Unifying the Shopping Experience” featured one particularly interesting speaker: Amish Tolia, cofounder and CEO of New York-based retail services firm, Leap. Founded in 2018, Leap aims to help digitally-native brands grow their operations. Most of these brands first came to market espousing a pure direct-to-consumer (DTC) model, but many have since found that they need to also embrace offline retail in order to sustain sales growth. However, this type of brand often does not have the expertise needed to scale up its operations into store-based retail. Leap aims to help these brands by providing a turnkey infrastructure solution, providing them with physical storefronts at a substantially reduced cost. For a cut of sales and a one-time build fee, Leap takes care of the real estate, the staffing, and the in-store technology, leaving the brand responsible only for providing the necessary inventory and marketing.
As more digitally-native brands look to expand offline, the service provided by Leap is becoming more attractive. As a result, Leap now boasts over 100 brand partners, with stores in 12 metro markets across the US. With consumers looking for a more seamless shopping experience across both digital and physical channels, Leap seems poised to continue to grow its business significantly over the next few years.
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