David answers questions about NRF priorities, 2023 LP predictions, Big Show takeaways, NRF LP Council, value of industry groups, retail violence trends, and the increased importance of retail loss prevention.
The top 5 technologies for 2023. In “2023, AI shifts from singles and doubles to home runs. The buzzwords that abounded at NRF 2023 include of course AI, plus lots of variations of everything being smarter, more intelligent, connected, and moving to real time. Eight in 10 retailers surveyed report that the violence and aggression associated with ORC incidents.
Energy will remain expensive. Value will trump hypergrowth. The crypto winter will continue. More retail brands will launch recycling programs. More manufacturing will shift away from China. Frictionless trends in retail will accelerate. Investments in the metaverse would be best described as a hard maybe. Retailers have been sounding the alarm on theft for years; 2023 could generate a collective response on the federal and state level.
The 2023 Top 5 Strategies and Top 3 Retail Technologies for Retail Success
As Walmart CEO warns of crime’s wave impact on retail, reports show how thieves brazenly rip off stores. San Francisco police secretly stake out retail stores, pharmacies to curb rampant shoplifting. 2022 Retail Returns Rate Remains Flat at $816 Billion. What the 12 Day of Christmas will cost you with 2022’s inflation.
Adam Oberdick, the Lead Director of Future Operations at CVS Health answers questions about innovation projects at CVS, getting major projects approved, successful traits for LP career, key priority technologies, and why LPRC and other industry group are critical to his success.
Reimagining the Future of Retail. UK consumer spending fails to keep up with Inflation. Voices from the Front Line or what Retail Employees Want.
Shopper turnout hit record high over Black Friday weekend, retail group says. Haute-Comfort: Consumers Choose Comfort Over Style Says New Research. What does the future of shopping with artificial intelligence look like? Supermarkets roll out chat friendly tills to battle COVID loneliness.
Shoppers continue choosing online or in-store for the same reasons – availability, selection, and price. They prefer retailers with easy returns (80%), allow them to get in and out of stores quickly (76%), and offer order delivery to home (75%). They are also taking advantage of alternative pickup and delivery options with 34% of shoppers opting to buy online, pick up in store or buy in store and ship to home and with 90% saying they will continue to use these services. Fun Thanksgiving Facts
IMF now forecasts global GDP growth to slow dramatically from the 6% in 2021 to 3.2% in 2022 and an even lower 2.7% in 2023. Global inflation is forecast to rise from 4.7% in 2021 to 8.8% in 2022, 6.5% in 2023 and 4.1% in 2024. The 10 highest global risk scenarios published by the Economist Intelligence Unit. 40% of consumers believing inflation will impact their holiday shopping decisions. 43% of retailers think consumers are buying less overall, yet only 29% of consumers admit that this is the case.
In terms of spend for this holiday season, 37% report their financial outlook as worse when compared to last year. 74% say they will spend more or the same on the holidays than last year. 32% plan to buy resale items as a way to offset rising prices. 34% plan to use social media as part of their holiday journey (vs. 28% in 2021). Online Holiday Sales to Grow 6.1% in 2022. Five Terrifying Retail Trends.
Primary reasons consumers shop in-store are: they need the items now (75%) or they want to touch and feel or try on items before purchasing (57%). Across all segments, more than 25% of customers report decreased trust in retailers based on inventory levels. Customers report they will give up on your store after 2.5-3 out-of-stock experiences. In just 48 years, the world population has doubled in size, jumping from four to eight billion. The exact date that we will hit 8 billion is November 15.
2022 LPRC IMPACT was a great success! In this week’s episode, our co-hosts discuss the IMPACT Conference and the great preparations taken, the record setting conference attendance, and a look at the LPRC moving forward into 2023!
USA retail holiday sales will increase 7.5% this year, above the 10-year avg. of 5%. WIth inflation, real growth will range from 1% to 3% below the 10-year avg. 92% of retailers expect a recession in the near future. 81% expect it to be one year or less. To prepare, 52% plan to seek cuts indirect expenses and 42% would invest more in loyalty, reduce direct expenses, and inventory. 56% expect to be stuck with excess inventory after the holidays. 60% of digital orders are now influenced by physical stores.
Similar to the last five years, average shrink rate in 2021 was 1.4%. When taken as a percentage of total retail sales in 2021, that shrink represents $94.5 billion in losses, up from $90.8 billion in 2020. Highest LP tech investments in 2022: RFID systems; AI-based point-of-sale (POS)/self-checkout (SCO) video analytics; license plate recognition; and/or self-service locking cases or lockers. Nearly 90% of respondents reported that COVID-19 had resulted in an increase in the risk of violence.