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The year-end expectations regarding Christmas sales seem to give a preamble to what lies ahead for the retail market in 2023, and experts warn that the numbers do not seem to be different from those of last year, with an industry that it raffled an inflationary index and the increase in interest rates.
The first month of the year will define whether the industry will gain momentum during the following quarter. especially before predictions that this year the United States will enter a recession. Retailers like: Walmart, Best Buy, Target, Kohl’s Nordstrom, and Macy’s are already seeing a 3.22% drop in customers year-over-year.
For Stacey Widlitz, president of consulting firm SW Retail Advisors, many industry markets are already anticipating the recession hit in January, Several already implement sales strategies, discounts and gift cards in order to increase sales.
The sector is aware that the influence of the high costs month after month of goods and services, plus the indebtedness of credit cards, unemployment and savings spending, means that Americans begin to reassess their priorities and reduce non-essential spending.
NRF CEO Matt Shay said that consumers are now cost conscious and therefore from the inevitable pressure to manage your income very well for daily, weekly and monthly expenses.
Shay points out that, by 2023, “retailers will have to work harder to attract and retain customers,” and warn that due to the great competition and more selective consumers, it will be very uphill for some retailers to stay afloat.
Technology can be a solution
Uncertainty in the retail market is increasing, but technology can be a solution in the midst of the crisis in the sector. The National Retail Federation (NRF) encouraged the industry to understand the consumer and with this maintain their loyalty.
To Saks OFF 5TH President and CEO, Paige Thomas the answer will always be in the needs of the client and studying this will make the retail chain adapt to its new demands. “One part of this is engagement: customer acquisition. The other is the customer experience. Do everything you can to pave the way,” he said.
Thomas assures that after the pandemic the sales game changed and customers only visit stores when they have a good reason to leave home, For this reason, he argues that the experience once the client is in the place must be unique, in this way he will return.
with the new technology Consumers, for example, will have the possibility to personalize their articles, with artificial intelligence and digital tools they will be able to try them virtually. “We live in an era of digital transformation, anything can be achieved now, but with that power comes high consumer expectations,” says Shelley Bransten, director of Consumer Goods and Retail Industries at Microsoft.
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