As retail spending bounces back, tech-enabled shopping experiences arrive. Here’s the latest in retail technology, consumer trends, and eCommerce.
Retail is going through a reset right now: consumers are returning to physical stores and expecting their pandemic-era digital tools to follow them wherever they go. I recently found myself struggling through an in-person HIIT class with nowhere to hide, genuinely indignant that I couldn't turn off my video (aka reality). And I wanted the pause button, too.
With our shopping journey optimized in the digital world, consumers now have little patience for IRL experiences that take away what we've gotten used to over the last two years: instant transactions, easy access to all the information needed to make a purchase decision, personalization, and more.
Marcus Johnson, host of Behind the Numbers, had a great line last year that went something like: you don't walk into a store and think "show me all your shirts in color black, size medium, fit regular, price low to high."
He made me laugh at how differently I shop online (efficient and generally uncreative) versus in-store (more willing to explore and get out of my comfort zone with the help of a trained professional). But now I'm re-visiting that idea: an in-store experience based on my product filter settings - that sounds pretty good - that's how I think now.
At Reaktor, we're helping brands and retailers use technology to keep up with consumer expectations, leverage data, and empower their employees.
The retail landscape is changing fast, and there is a lot to process. I'm guilty - as Reddit perfectly put it - of having 70+ tabs open on a Friday. So instead of ringing in the weekend by simply closing out Chrome and seeing what I remember on Monday, I'm starting to share some of the highlights a couple times a month. Here goes!
Last month, IBM published a great piece of research titled, "Consumers want it all: Hybrid shopping, sustainability, and purpose-driven brands." And this month, one of the authors, Karl Haller, went on Rethink Retail's podcast to talk through the findings. Listening to the podcast is a nice companion to the report.
Among the key findings:
We found that, after spending much of the past two years in a virtual-first world, consumers now see digital tools as a necessary part of the shopping experience. They expect stores to be digitally enabled and for brands and retailers to support hybrid shopping journeys, which blend physical and digital channels.
Consumers no longer see online and offline shopping as distinct experiences—they expect everything to be connected all the time. Shopping must be fast and efficient some of the time, rich and experiential other times, and always easy and intuitive.
Everyone agrees (until the numbers are revised, that is): retail spending rose 3.8% in January compared to December, and 13% year over year.
That sounds like a great thing. The WSJ wrote:
The jump added to signs that the U.S. economy started 2022 with plentiful jobs, sizable wage gains and consumers with cash to spend—despite surging inflation. Employers added jobs at a rapid pace in January, and the unemployment rate was 4%. Layoffs also remained low in the nation’s tight labor market.
But then they added this note:
Unlike other economic-data reports produced by the U.S. government, retail sales aren’t adjusted for inflation. That means higher retail-sales figures can reflect higher prices rather than more purchases.
Then I opened 70+ tabs on inflation, hours passed by, and I leave you with PNC’s chief economist, Gus Faucher:
Consumers say they are worried about inflation, but they continue to spend. Even taking into account the December decline, retail sales in recent months have been increasing much faster than prices, so households are purchasing larger volumes of goods and services, not just paying higher prices.
It's an exciting time in retail, as shoppers, retailers, and brands co-author their future together - really the first time. Convenience, creativity, and sustainability underline recent launches. As Steve Dennis famously said, "Physical retail isn't dead. Boring retail is dead."
Here a few of the highlights:
That's the rundown for today - thanks for reading - see you again in a couple weeks!