As e-commerce growth returns to pre-pandemic levels, it will continue to drive total retail sales over the next few years. Retailers looking to drive sales need to focus on a seamless omnichannel experience and use deals to convince consumers to spend. Meanwhile, retail media’s growth shows no signs of slowing, but advertisers and retailers must work together to ensure future success.
Here are some charts to consider as retailers get ready for 2024.
E-commerce will drive retail sales once again
The crazy highs and lows of the past few years are gone and retail sales will normalize to pre-pandemic trends. That means e-commerce will be the driving force behind retail sales growth for the foreseeable future, growing by double digits through 2027, per our forecast.
However, what people are buying online is shifting. Essential categories like grocery and health and personal care are growing their share of online sales whereas categories like home improvement or large appliances will decline or see minimal online sales growth.
On the flip side, in-store shopping is going through a rough patch as anti-theft measures and store closures detract from the customer experience. Retailers that want to drive consumers to physical stores in the new year will need to offer them experiences they can’t get online through exclusive products and deals or fun, unique experiences.
Deals continue to rule
Deals and discounts are going to remain essential to driving consumer spending in 2024, especially when it comes to digital ads.
Personalization efforts should be focused on offering the right product to the right consumer at the right price.
Omnichannel will be more important than ever
Shopping is no longer in-store or online. It’s a fluctuating journey, where consumers may start their search in one place and make their purchase in another.
But not every channel needs to drive a purchase. Heading into 2024, retailers should know where their audience is discovering products, where they’re learning more about them, and where they’re buying them. No matter if that’s all happening in one channel or if it’s happening in many, any time a consumer interacts with a brand, it should feel consistent and flow from one interaction into the other. That’s the true key to omnichannel success.
Credit: https://www.insiderintelligence.com/content/what-retailers-need-know-about-2024-and-beyond-5-charts