Adjusted for seasonal variations but not inflation, retail sales dropped by 0.1% in October compared to the previous month, according to the Commerce Department’s report on Wednesday.

While that’s the first monthly decline since March, it was a smaller decline than economists were expecting. A drop-off in sales of some big-ticket items helped drive October’s decline. Car sales fell 1.1% in October from September, while furniture sales declined 2% during the same period.

The Consumer Price Index rose 3.2% in October from a year earlier, down from September’s annualized 3.7% rise, marking the weakest pace since March 2021, the Bureau of Labor Statistics reported Tuesday.

One month’s data doesn’t make a trend, but economists are widely expecting the US economy to cool further in the final months of the year, including inflation, under the weight of several economic headwinds.

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It’s usually a bad idea to look at Halloween sales as an indicator for holiday highs or lows in consumer spending. Halloween has a different buyer profile than holiday – it tends to look more like back to school spending than holiday gifting, with a younger profile, a smaller pool of interested people, and a much smaller overall budget.

But this year is different. In particular, the student loan repayments that resumed in October have the potential to be the final straw that breaks consumers’ backs.

As we mentioned last week, spending this holiday season is expected to rebound to – and even surpass – pre-pandemic levels this year for the first time. Surprisingly, 66% of shoppers say they have purchased an item online in the last 12 months that they previously only ever bought in-store during the holiday season.

Although using Halloween spending to gain any confidence in the holiday season outcome may seem like grasping at straws, its always good to stay on the side of optimism.

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The third annual Product Content Benchmark Survey reveals consumers, on average, conduct research online before 61% of shopping trips, a 25% increase from 2022.

To ensure they are making the right purchase, 35% of consumers are deploying Augmented reality during mobile shopping and 57% relying on these tools to help visualize product dimensions.

As we mentioned last week, spending this holiday season is expected to rebound to – and even surpass – pre-pandemic levels this year for the first time. Surprisingly, 66% of shoppers say they have purchased an item online in the last 12 months that they previously only ever bought in-store during the holiday season.

Lastly, the survey found that the average shopper predicts they will do approximately 60% of their holiday shopping online.

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Spending on the holiday season is expected to rebound to – and even surpass – pre-pandemic levels this year for the first time.

But, surprisingly, it’s not gifts that consumers will be splurging on the most in the runup to Christmas, according to a new report Tuesday from Deloitte. Findings from 4,330 consumers surveyed between Aug. 30 and Sept. 8 found shoppers are eager to get going with their holiday shopping, and maybe even indulge on themselves.

Among the findings: Consumers are expected to spend an average of $1,652 on holiday-related purchases, up 14% from last year and surpassing an average of $1,496 they spent in 2019.

As many as 82% of shoppers said they plan to spend on non-gift purchases such as decorations. That’s up from 77% last year. It’s not quite back to the 2019 levels where it was 88%, but it is inching up this year.

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Although the world of augmented reality still seems a bit like a sci- fi movie, the technology has advanced to the point where it is ready to hit the mainstream.

AR has the potential to transform how and why we make payments and buy certain items, simplifying processes and virtually eliminating the need to take out our wallets.

Innovation in physical retail — for buyers, retailers and tech companies — is about to accelerate. Augmented reality glasses, once adopted by the mainstream, will bring forth a renaissance in physical retail that merges the digital and physical shopping experiences.

Hands-free, contactless payment, Personalized recommendations, and virtual showrooms, are just a handful of the use-cases that the technology will be capable of.

Do you see AR being a viable option in your store? Respond to this email and let us know your thoughts!

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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.

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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. 

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In the most recent white paper by RIS News, Customer Experience in Retail Data: Drives Everything, they 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.