New technologies such as AI are providing a newfound sense of optimism for the industry as a whole.
Despite the fact that generative AI has only been universally available since November 2022, a recent survey on retail leaders found that 81% of respondents already have a dedicated AI budget, with an average of 50% assigned to generative AI.
This week we look at the retail outlook for 2024 and insights and predictions for the year to come.
Today’s Rundown
- Predictions: Why Macy’s downsizing reflects a larger retail trends.
- Startup watch: Nominations are open for the Next Billion-Dollar Startups in 2024.
Q4 2023 Benchmark Report: Sign up HERE to receive the report and see how you compare to the industry average.
Global Retail Outlook 2024
This week, Deloitte released their Global Retail Outlook for 2024 which is jam packed with insights and predictions for the year to come. Here is a breakdown of insights we found meaningful:
- The majority of retailers foresee an increase in revenue from 1% to 9% (89%). European retailers are the most positive, expecting a slightly higher revenue growth compared to other regions, with a larger proportion anticipating an increase from 5% to 9%.
- The majority of retailers (74%) foresee a modest increase in operating profit margins, indicating overall confidence in the sector’s financial performance.
- Out of the 200 retail executives in the survey, here are the top priorities for the year ahead:
- Managing inflationary pressures and reducing costs
- Improving supply chain resilience
- Becoming more environmentally sustainable
- Growing market share
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Maintaining or increasing operating margins
- Lastly, new technologies such as AI and machine learning are providing a new sense of optimism for the industry as a whole.
All signs point to 2024 being a year of change and growth.
How bracketing trends are reshaping retail strategies
According to Wikipedia, generative artificial intelligence is artificial intelligence capable of generating text, images or other data using generative models, often in response to prompts.
A new survey conducted by Salesforce and the Retail AI Council, found that retail executives estimate that 36% of their employees already are using generative AI today, with that figure projected to rise to 45% by 2025.
Additionally, 93% of these retailers say they’re already using generative AI to support personalization of customer-facing communications like emails and product recommendations.
What’s most surprising about this adoption, is that generative AI has only been universally available since November 2022. Since November, 81% of respondents already have a dedicated AI budget, with an average of 50% assigned to generative AI.
The top three areas where retailers plan to use generative AI are in customer service, marketing and store operations.
Retail Trends
Predictions: Why Macy’s downsizing reflects a larger retail trends.
Startup watch: Nominations are open for the Next Billion-Dollar Startups in 2024.
Dynamic shoppers: Ballooning credit card balances on pace to surpass the all-time record this year.
Random Irrelevance
Privacy protection: Airbnb bans indoor cameras, ensuring privacy for guests.
Must see: Winners of the British Wildlife Photography Awards 2024.
Can’t miss: Where & when to witness the 2024 total lunar eclipse.
