Retail Traffic Trends #148: Consumer Confidence 2023

Over the last few years we have witnessed shopping patterns take many twists and turns.

This week, we’ll look at the latest insights on shopping trends and how they impact holiday forecasts and Predictions for 2023.

THIS WEEK’S HIGHLIGHTS

  • Amazon hot seat: FTC, 17 states sue Amazon for ‘exploiting its monopoly power’.
  • Doorcounts is becoming Trakwell.ai: Click HERE to learn more.
  • OUT NOW – Q2 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC INDEX

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

The truth about retail shrink

Retail theft has caught the attention of the masses in recent years, from startling smash-and-grab videos during the depths of the Covid pandemic to corporate earnings calls where retailers like Target and Foot Locker are discussing losses from organized retail crime more than they ever have.

Despite the increased media attention, the effect of theft on retailers’ bottom lines is about the same as it has been for years, according to the latest data released by NRF.

Retail shrink climbed in absolute dollars, but when reported as a percentage of sales as is commonly done, average annual shrink increased to 1.57%, up from 1.44% in 2021. The share is largely in line with past years. Average annual shrink was 1.62% of sales before the pandemic in 2019, though it was as low as 1.33% in 2017, according to previous surveys.

Click HERE to read more.

Consumer confidence tumbles

Despite over 449,000 jobs being added into the economy between June and August, consumer confidence took a major hit in September.

Consumer confidence index fell to 103 in September from 108.7 in August. The index is at its second-lowest level this year, landing just above May’s 102.5 reading, according to Conference Board data.

Analysts were expecting a smaller decrease, to a reading of 105. Confidence fell amung all age groups, but was most profound among consumers who make over $50,000 a year.

Click HERE to learn more about the current state of consumer confidence.

Retail Snippets

Carbon neutral: Walmart launching “mini-retail experience” for travelers.
 
Amazon hot seat: FTC, 17 states sue Amazon for ‘exploiting its monopoly power’.


Supply chain: Can nearshoring prevent the next supply chain crisis?

Random Irrelevance

Chipotle bot: Chipotle’s new robots can make nearly 200 burrito bowls an hour.

 
Flying Solo: Amateur astrophotographer captures rare Jupiter explosion.


Social Shopping: Indonesia to ban purchases on social media like TikTok, says it will further regulate e-commerce

Read More

Retail Traffic Trends #137: Data behind the customer

Over the last few years we have witnessed shopping patterns take many twists and turns.

This week, we’ll look at the latest insights on shopping trends and how they impact holiday forecasts and Predictions for 2023.

THIS WEEK’S HIGHLIGHTS

  • Carbon neutral: Eco-friendly online shopping to top $100 Billion.
    Doorcounts is becoming Trakwell.ai: Click HERE to learn more.
  • OUT NOW – Q2 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC INDEX

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Data behind the customer

Ever since the lockdowns in 2020, shopping patterns have taken many twists and turns. 

 

In a recent survey, 35% of respondents claim they expect to spend more online than in person in 2023. Only 15% of purchasers expect to check out more at brick-and-mortar retailers this year.

 

Not only are consumers spending more in different places, they’re also cutting non-essential purchases. JPMorgan’s April 2023 “Cost of Living” survey found that 75% of U.S. consumers expect to reduce non-essential spending by 6% or more this year.

 

One thing that has stayed the same is the value of loyalty programs and their role in building consumer confidence. Eighty-four percent of respondents reported getting discounts through retailers’ loyalty programs in 2022. 

 

Click HERE to read more about how shopping trends are changing.

Holiday Retail Forecasts and Predictions 2023

Holiday retail sales are likely to increase between 3.5% and 4.6% in 2023 for the November-January timeframe, according to Deloitte’s annual holiday retail forecast. In comparison, Last year the company predicted an increase between 4% and 6%.

 

Overall, Deloitte’s retail and consumer products practice projects holiday sales will total $1.54 to $1.56 trillion during the November to January timeframe. In 2022, holiday sales grew by 7.6% in the same period.

 

If we look at August U.S. retail sales for clues to the upcoming months, retail sales rose 0.6%, compared with a 0.5% increase in July, according to a report issued by the Commerce Department.

 

And as always, Shoppers are eager to get an earlier start to their holiday shopping. A significant 38% of the population is planning to start holiday shopping in September, a 25% increase from last year.

 

Click HERE to read more about holiday forecasts and predictions.

Retail Snippets

Carbon neutral: Eco-friendly online shopping to top $100 Billion.
 
Sandal takeover: Understanding the challenges faced by emerging brands in the retail industry.


Virtual Walmart: Walmart aims to “revolutionize retail” with expansive commercial strategy in the metaverse.

Random Irrelevance

Costco memorabilia: Costco superfans can now buy a Costco-themed Monopoly game.

 
Flying Solo: Questions mount after F-35 jet went missing.


First Look: NASA shares stunning image of Mercury, the smallest planet in solar system.

Read More

Retail Traffic Trends #136: Data takes the wheel

As we have seen predominately in the last few years, data drives everything.

One of the biggest upsides for companies that have slowly switched to digital avenues after years of purely physical selling is the wealth of data and analytics that come with digital solutions

This week is all about the effect digitalization has had on the retail industry and how data is the key to perfecting the customer experience.

THIS WEEK’S HIGHLIGHTS

  • From Clicks to Bricks: Three trends driving the future of retail.
    2023 Forecast: US retail sales expected to grow 2.9% this year.
  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Data takes the wheel

In the most recent white paper by RIS News, Customer Experience in Retail Data: Drives Everythingthey dive deep into data from retailers across the country to see the driving forces in customer experiences.

 

82% of retailers from the recent survey name improved customer experience as their highest business priority for the year ahead, with increased revenues coming in a distant second at 43%. With people going out less frequently than before, making every customer experience as seamless as possible has become essential.

 

In particular, 63% of companies added curbside pickup and other changes in how they deliver products to customers, with more than half (57%) expecting to continue the new curbside pickup and home delivery services once the pandemic has passed.

 

Another factor that contributes to great customer experience is the ability to harvest large volumes of data that can inform business decisions aimed at increasing profits, improving customer loyalty, and expanding market share.

 

Click HERE to download the full white paper on customer experience.

5G meets the sales floor

Although a wireless network doesn’t seem to have much to do with the world of retail, it has the potential to perfect the custom journey and boost your sales.

 

5G is expected to be a powerful catalyst to disrupt retail operations, from optimizing warehouses and supply chain management to transforming the in-store customer experience through personalization and product engagement. 

 

Due to the speed of 5G, the adoption rate has already proved to be higher than expected. A recent Verizon Look Forwardstudy found that more than 1/5 adults say they expect to use more self-checkout and contactless payment in a year than they already use.

 

5G also gives the possibility of a life without internet issues at work, with many phone providers offering business plans so your team can stay online no matter where they are.

 

Learn more about the benefits of 5G in retail.

Retail Snippets

From Clicks to Bricks: Three trends driving the future of retail.
 
2023 Forecast: US retail sales expected to grow 2.9% this year.


Superfakes: The new breed of knockoffs that are so good, even experts can’t tell them apart.

Random Irrelevance

New Beginnings: Scientists say they’ve found a site that marks a new chapter in Earth’s history.

 
Michelin Guide: Atlanta becomes ninth Michelin Guide destination in North America.


Instant Supplement: GNC piloting drone delivery service in select U.S. markets.

Read More

Retail Traffic Trends #135: The Ghost of Retail

As we enter the second half of 2023, the retail industry continues to evolve at an unprecedented pace.

From the rise of e-commerce to the integration of advanced technologies, retailers are finding innovative ways to enhance customer experiences and meet the changing demands of the market.

In this edition of our newsletter, we will explore the list of retailers that have set the benchmark for success in 2023, as well as the trends that will take over in the months to come.

THIS WEEK’S HIGHLIGHTS

  • Tech takeover: What will the future of retail look like?
  • Ghost of retail: Retail ‘ghosting’ costing $2.4B in industry loss.

  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Tech takeover

What will the future of retail look like?

 

Will there be intelligent sensors that recognize you as you enter the store? What about floating, holographic product displays that change as you explore the aisles? 

 

Or maybe you’ll simply shop from home using virtual reality (VR) headsets, and drones will drop deliveries at your doorstep. While many of these would’ve sounded unreal a few years ago, they aren’t anymore. These technologies exist and are a reality today at a number of retail stores, online and offline. 

 

Learn G2 asked six retail experts around the globe about the technologies retailers should bet on as companies integrate their online and physical stores in the post-pandemic world.

 

Here’s the top 6 trends they expect to take off:

  1. AI, machine learning (ML), and generative AI
  2. Automation
  3. Augmented reality (AR)
  4. RFID, QR codes, and other smart store technologies
  5. Mobile technologies
  6. Datafication 

Click HERE to learn more about these emerging technologies.

2023 Top 100 Retailers

The annual list from the National Retail Federation ranks the industry’s biggest players by domestic retail sales. It also considers Power Players in a variety of categories, each with 2022 U.S. sales equal or greater than 10% of the sales of the category leader. 

 

Following years of unrelenting change, the country’s Top 100 retailers have delivered a surprise: greater consistency than expected. David Marcotte, senior vice president for Kantar (Kantar compiles the data), says other than just a few exceptions, “everybody grew, and at more or less the same rate.”

 

Here’s the top 5 retailers of 2023:

  1. Walmart
  2. Amazon
  3. Costco Wholesale
  4. The Kroger Co.
  5. The Home Depot

Click HERE to see the entire list of retailers.

Retail Snippets.

Ghost of retail: Retail ‘ghosting’ costing $2.4B in industry loss.
 
Alcohol-free beer: Thirst for healthier options fuels jump in UK sales.


Kidult revolution: The Toy industry wants to reach a new customer — The ‘Kidult’.

Random Irrelevance

Hottest day ever: The record for hottest day ever on Earth was broken on July 3rd.

 
Twitter Killer: What you need to know about Threads, Instagram’s new Twitter killer app.


Delivery strike: Risk of major disruption as UPS strike looms in US.

Read More

Retail Traffic Trends #134: Retail Theft Crackdown

This year, it is projected that US retail sales will reach $7.334 trillion, indicating a 3.3% increase compared to the previous year.

Despite the increase, analysts believe that the rate of growth will slow down significantly compared to previous years.

This week we dive into the latest predictions for Q3 and beyond.

THIS WEEK’S HIGHLIGHTS

  • Retail Theft Crackdown: How the inform act will combat retail theft
  • Q3 and beyond: Breaking down retail’s ‘new normal of slower growth’

  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Retail Theft Crackdown

Starting on Tuesday, the Inform Consumers Act will be implemented as a new legislation targeting organized retail theft and the sale of counterfeit and dangerous products on online platforms. This development comes as many retailers attribute their decreased profits to theft incidents.

Under this law, online marketplaces like Amazon and eBay are required to verify and disclose information about third-party sellers who engage in a significant number of transactions on their platforms. The intention is to discourage individuals who sell stolen or harmful goods from operating on these platforms.

If the companies fail to get in line, they could face more than $50,000 in fines for each violation.

Click HERE to learn more about the future of retail theft prevention.

Breaking down retail’s ‘new normal of slower growth’

This year, it is projected that US retail sales will reach $7.334 trillion, indicating a 3.3% increase compared to the previous year. However, Zak Stambor, a growth analyst at Business Insider, predicts that there will be a new normal of slower growth in the future.

While the rate of inflation growth has been decreasing month by month, it is still relatively high compared to the previous year. According to CNBC, there was a 5% increase in inflation in March 2022.

Furthermore, OPEC+ recently announced a reduction in oil production, which could result in higher gas prices and potentially affect consumer spending.

Looking ahead, the expected annual growth rate for retail sales is anticipated to range from 3.3% to 3.5% until 2027. This represents a significant decline from the growth rates of 8.1% in the previous year and 17.9% in 2021.

Click HERE to learn more.

Retail Snippets.

State of Retail: NRF releases their State of Retail 2023.

One hit wonders: Costco cracks down on membership card sharing.

Bed Bath & the great Beyond: Overstock wins Bed Bath & Beyond IP at auction with $21.5M bid.

Random Irrelevance

Wildfire smoke live updates: Air quality alerts have been issued in 20 US states.

 
Grounded: In a major discovery, scientists say space-time churns like a choppy sea.


The last disc: Netflix is winding down its DVD business after 25 years.

Read More

Retail Traffic Trends #133: Biometrics meet retail

The accessibility of AI tools like ChatGPT has empowered individuals worldwide, revealing the remarkable capabilities of these tools.

As the digital landscape transforms, consumer interactions with businesses are constantly evolving. A noteworthy adaptation is the rise of AI-driven chatbots.

This week we look at how new technologies have the potential to have unique use cases for retail stores.

THIS WEEK’S HIGHLIGHTS

  • Chatbots meet retail: Inside the latest boom.
  • Bioretail : Biometrics enter the retail landscape
  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Chatbots invade retail

As the digital landscape transforms, consumer interactions with businesses are constantly evolving. A noteworthy adaptation is the rise of AI-driven chatbots.

 

Tools like ChatGPT have put the possibilities of AI at the fingertips of everyone — and people all over the world are now recognizing that these tools can do incredible (and useless) things.

 

A forecast by Juniper Research suggests a significant leap in global retail spending on chatbots – expected to reach US$12 billion in 2023 and rocket to US$72 billion by 2028. 

 

Click HERE to learn more about the rise of chatbots in retail.

Biometrics enter the retail landscape

In 2002, the movie Minority Report was released and showed the world how terrifying the world could become if biometrics could tell advertisers exactly what you want.

 

20 years later, the premise of the movie is slowly becoming a reality. About two-thirds of marketing professionals said they expected to see greater use of biometric data to access, personalize or secure data and services by the end of this decade, according to a survey by WPP’s Essence.

 

Although biometrics are far from the level we saw on Minority Report, the more immediate marketing applications for biometrics are likely to focus on letting consumers protect their personal information.

 

As said by Mark Viden, senior vice president of brand at nonprofit hospital chain CommonSpirit Health, “Making the decision to tap such personal data fast-tracks an intimate relationship between a brand and consumers,”.

 

Click HERE to learn more about the future of biometrics in retail.

Retail Snippets.

Shrink theory: The retail industry’s biggest problem is about to become a huge opportunity.

 

Cosmetic makeover: How Amazon Is transforming a sensory-based industry through digital.

 

Fast or last: Deliveries keep getting faster. Will it last?

Random Irrelevance

Best of the best: The world’s 50 best restaurants for 2023 revealed.

 

First look: Spacecraft snaps incredible images of Mercury as it skims surface.

 

Recharge: Safety probe launched into 40,000 Hyundais after reports of power loss.

Read More

Retail Traffic Trends #132: May 2023 Metrics are in! 📊🕰️

This May, the furniture industry saw a 3% increase in conversion rate, while the mattress industry experienced a 9% boost in average ticket prices.

This week we will take a closer look at what drove these improvements in the industry and what they could mean for the future.

THIS WEEK’S HIGHLIGHTS

  • May in the furniture industry: How the furniture industry increased conversion rate by 3%.
  • May in the mattress industry: Less foot traffic, higher average ticket, and more time spent with customers.
  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

May 2023: Furniture industry

May 2023: Mattress industry

Retail Snippets

A new era: Retail industry ad spend on YouTube to top $4 billion this year.

 

2023 Predictions: 85% of Gen Z says social media impacts purchase decisions.

 

Warning signs: Target sales flat as retailer warns of $500M profit hit.

RANDOM IRRELEVANCE

Inflation: Consumer prices in May rose at slowest annual rate since April 2021.

 

Earth 2.0: James Webb’s ‘too massive’ galaxies may be even more massive.

 

Stream-worthy: The 20 best TV shows of 2023 (so far).

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Doorcounts is now Trakwell.ai!

What’s changing?

We have a new name and a new visual identity. By integrating the alwaysAI computer vision platform, Trakwell is able to improve object detection, counting, and tracking to deliver accurate, immediate data about occupancy and team performance.​

Why is it changing?

As the market landscape rapidly evolves, it is crucial for us to remain at the forefront of innovation and adapt our brand to reflect our vision and goals accurately. With Trakwell.ai, we are embracing a new era of limitless possibilities and harnessing the power of AI to drive our company’s growth and success.

Can I take a look at the new platform?

If you are interested in taking a closer look at what the new Trakwell.ai platform can do, head over to trakwell.ai and take a look.

We’re really excited about this new chapter!

Read More

Retail Traffic Trends #131: The Next Big Hurdle

The accessibility of AI tools like ChatGPT has empowered individuals worldwide, revealing the remarkable capabilities of these tools.

From answering questions and crafting poetry to generating texts in the styles of renowned authors and facilitating translation, the possibilities seem endless. 

This week we look at how new technologies have the potential to have unique use-cases for retail stores.

THIS WEEK’S HIGHLIGHTS

  • ChatGPT meets retail: Inside the latest boom.
  • Shopping behavior: The Rise of the Gen Z consumer
  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

ChatGPT: Retails next big tool

Tools like ChatGPT have put the possibilities of AI at the fingertips of everyone — and people all over the world are now recognizing that these tools can do incredible (and useless) things.

 

ChatGPT can answer questions, write poetry, create movie scripts with the tone of specific authors, do translation, and more.

 

The chat also has the potential to have unique use-cases for retail stores. ChatGPT can be a valuable tool for conducting retail market research. By analyzing customer data, ChatGPT can provide insights into buyer behavior, including which products are most popular, which marketing channels are most effective, and what factors drive customer loyalty.

 

Click HERE to learn more about all the ways ChatGPT can be used in your store.

The Rise of the Gen Z Consumer

As the oldest members of Gen Z move into their mid-20s and the youngest enter their teen years, personal finance concerns are high on their list of worries.

 

A recent report found that 48% of Gen Z frequently shop at discount stores, with 20% prioritizing dollar stores.

 

Financial concerns also affect how Gen Z pays for things: 45% use debit cards, 21% prefer cash, and credit cards come in third at 17%. Buy now, pay later (BNPL) options are at the bottom of Gen Z’s preference list, at only 3%.

 

Despite Gen-Z being digital natives, physical stores are still a fan favorite. virtually all (97%) of the 1,000+ consumers surveyed in March 2023 shop in brick-and-mortar stores — and almost the same number, 95%, also shop online. 

 

Click HERE to learn more about the rise of gen-z shoppers.

Retail Snippets.

AR showroom: How is augmented reality tranforming the retail industry?

 

30 Under 30: Starbucks signs deal with ghost kitchen to boost delivery business.

 

Emotions drive sales: Understanding the power of behavioral economics.

Random Irrelevance

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Apple Vision Pro: How revolutionary is Apple’s new $3500 headset?

 

A new perspective: NASA gets an unusually close glimpse of a black hole snacking on a star.

Read More

Retail Traffic Trends #130: Memorial Weekend Traffic Recap

Just as sound has the power to captivate and immerse, color possesses an equally remarkable ability to anchor and transform.

Imagine this: by carefully selecting the perfect palette for each section of your store, you can weave a personalized shopping experience for your customers, all without them consciously realizing the magic at work.

In this week’s edition, we dive into the captivating realm of color and its profound impact on the customer experience. Additionally, we will look at how this Memorial Weekend compared to years past.

THIS WEEK’S HIGHLIGHTS

  • Color hacks: How color can transform the way your shoppers think.
  • Memorial Weekend Wrap-up: How did different industries compare to last year?

  • Q1 2023 Benchmark Report: Click HERE to see how your store compares to the industry average.

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Traffic Watch: Memorial Weekend

Memorial Day weekend is traditionally a significant time for retail, and analyzing foot traffic trends can offer valuable insights into industry performance and consumer behavior. Here’s our breakdown of the holiday weekend:

 

Furniture Industry: The furniture industry experienced a 14% decrease in foot traffic compared to last year’s Memorial Day weekend. While this decline indicates some challenges, it’s important to note that the industry still attracted a considerable number of visitors during the holiday weekend.

 

Mattress Industry: Foot traffic in the mattress industry declined by 30% compared to the previous year’s Memorial Day weekend. 

 

Appliance Industry: The appliance industry witnessed a decline of 26% in foot traffic when compared to the same period last year. Although the industry saw a significant decrease, foot traffic still exceeded the weekend average.

 

Footwear Industry: In contrast to the aforementioned industries, the footwear sector experienced a 2% increase in foot traffic compared to last year’s Memorial Day weekend. 

Changing colors

Colors have a remarkable way of stirring emotions and perceptions, and it’s fascinating to explore the subjectivity behind our interpretations. What one person sees as blue, another may insist is purple. 

Research reveals that our personal preferences, experiences, upbringing, cultural backgrounds, and the context in which we encounter colors all contribute to our brain’s interpretation of them. It’s a mesmerizing blend of science and subjectivity.

Just like how the perfect soundtrack can transform a movie scene, colors have the power to anchor and shape our retail spaces. Their primal function allows our brains to swiftly make connections, helping us perceive shapes, gauge distances, and even sense temperature in our environment.

Imagine the possibilities when you take the time to deliberately choose the right colors for specific areas of your store. It’s like a hidden superpower that enables you to personalize the shopping experience for every visitor, subtly influencing their perception without them consciously realizing how.

 

Click HERE to learn more about the importance of color in retail.

Retail Snippets.

Mini Stores: Why mini stores will grow for many major retailers.

 

Augmented retail: How is augmented reality transforming the retail industry?

 

New concepts: retail store openings and new concept trends.

Random Irrelevance

Netflix lockdown: Netflix’s password sharing crackdown officially hits US users.

 

Look up: Scientists discover black hole shooting X-ray jet 60,000 times hotter than sun.

 

New energy: New technology generates ‘electricity from thin air.’ Humidity could be a boundless source of energy.

Read More

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