Retail Traffic Trends #154: The Extinction of Free Returns

In October, the United States experienced a notable shift as overall sales recorded a decline for the first time in seven months.

This week, we explore what happened last month and take a look at the surprising data behind the disappearing act of free returns.

THIS WEEK’S HIGHLIGHTS

  • Social success: Getting to understand social media data’s rising influence on business success.
  • 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.

US Retail Sales

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.

Click HERE to read more.

Farewell Free Returns

About 40% of retailers are charging return fees this year, according to retail technology company Narvar. That’s up from 31% in 2022 as companies work to improve profitability amid dwindling consumer demand and rising costs.

Processing a return can cost as much as 66% of a $50 item, according to one estimate from logistics technology company Optoro. It’s costly enough that retailers like Amazon and Walmart will occasionally let a customer keep their refunded item instead of making them ship it back.

Although charging for returns will make returns more challenging for consumers, there are positives. Not only will consumers become more conscious of their purchases, the environment will thank us. Optoro estimates that returned inventory in the U.S. last year created 9.5 billion pounds of landfill waste and 24 million metric tons of carbon dioxide emissions.

Click HERE to learn more about the future of returns.

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Retail Traffic Trends #153: October Metrics are in!

This October, the furniture and mattress industry saw significant increases in their prospects gathered compared to the previous month.

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

  • October recap: Everything you need to know about how last month played out.
  • Trakwell.ai v23.4: Learn more about our latest Trakwell.ai update.
  • Q2 2023 Benchmark Report: Click HERE to download the report.
  •  

FOOT TRAFFIC TRENDS

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

October 2023: Furniture industry

October 2023: Mattress industry

Retail Snippets

By the numbers: Uncovering the digital ad spending by industry in 2023.
 
Targeted marketing: For the retail industry, generative AI means more targeted marketing.


The slow burn: Top challenges faced by emerging brands in 2023.

RANDOM IRRELEVANCE

New Beginnings: Footwear brand Sorel is opening its first pop-up shop this Friday.

 
Look up: Watch live as NASA reveals what’s inside the asteroid sample canister.


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

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Retail Traffic Trends #152: Halloween Sales tee up Holiday Spending

It’s usually a bad idea to look at Halloween sales as an indicator for holiday highs or lows in consumer spending – But this year is different.

This week, we explore what halloween signals for the remainder of the year and take a look at the surprising data behind retail shrink in 2023.

THIS WEEK’S HIGHLIGHTS

  • Social success: Getting to understand social media data’s rising influence on business success.
  • 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.

Halloween Sales tee up Holiday spending

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.

Click HERE to learn more.

Retail Shrink by the numbers

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.

Retail Snippets

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Short lived: Serta Simmons CEO Charlie Eitel resigns after 3 months.


Tracker: The running list of major retail bankruptcies.

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Retail Traffic Trends #151: Long Live Impulse Buys

Knowing that consumers today are adept at balancing frugality and indulgence, in 2024 we expect to e-commerce to take on an even more dominant role, and in-store shopping to make a major comeback.

This week, we explore how impulse buys are slowly disappearing and look forward to trends we expect to see in 2024.

THIS WEEK’S HIGHLIGHTS

  • Social success: Getting to understand social media data’s rising influence on business success.
  • 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

week 42 2023 foot traffic counts

FOOT TRAFFIC TRENDS

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

Long-live impulse buys

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.

Click HERE to learn more.

2024 Trend Watch

Knowing that consumers today are adept at balancing frugality and indulgence, in 2024 we expect to e-commerce to take on an even more dominant role, and in-store shopping to make a major comeback.

The majority of consumers now use at least three channels for each purchase journey. And while 75% of consumers want a seamless omnichannel experience, only 25% are satisfied with the experience that retailers provide.

As we keep seeing more and more, consumers are gravitating toward sustainable products. 84% say that sustainability is a very important factor in their purchase decisions. However, 50% say they’re not sure whether they would pay a premium for sustainable products in times of inflation.

Click HERE to learn more about consumer behavior.

Retail Snippets

In-store only: HomeGoods shuts down its online shopping.
 
Social success: Getting to understand social media data’s rising influence on business success.


Busted: 14 charged in massive $20 million South Florida retail theft ring.

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Robo-warehouse: Amazon tests two-legged, mobile robots in their warehouses.


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Retail Traffic Trends #150: The Q3 2023 Benchmark Report is Here!

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

This week, we release our Q3 2023 Home Furnishing Benchmark Report and explore how changing consumer behavior has affected holiday spending predictions.

THIS WEEK’S HIGHLIGHTS

  • Curse of Knowledge: Why product knowledge is the no. 1 customer success factor.
  • 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.

Holiday Spending Predictions

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.

Click HERE to view the full report.

Holiday season preparations

Today’s consumers are both trading down and selectively splurging.

They’re buying big, established brands and exploring newer, smaller ones. Many of their buying decisions are becoming a matter of “and,” not “or.” 44% of consumers around the world (and 60% of Gen Zers and millennials) say that they plan to splurge, particularly on purchases that are experiential or provide immediate gratification—such as restaurants or travel.

The majority of consumers now use at least three channels for each purchase journey. And while 75% of consumers want a seamless omnichannel experience, only 25% are satisfied with the experience that retailers provide.

As we keep seeing more and more, consumers are gravitating toward sustainable products. 84% say that sustainability is a very important factor in their purchase decisions. However, 50% say they’re not sure whether they would pay a premium for sustainable products in times of inflation.

Click HERE to learn more about consumer behavior.

 

Retail Snippets

Carbon neutral: Macy’s hits fast forward on small-format store plans, aims to open 30 new stores.
 
Curse of Knowledge: Why product knowledge is the no. 1 customer success factor.


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Retail Traffic Trends #149: September Metrics are in!

This September, the furniture industry saw a 2% increase in conversion rate, while the mattress industry saw average ticket increase by 27% compared to August 2023.

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

  • September recap: Everything you need to know about how last month played out.
  • Trakwell.ai v23.4: Learn more about our latest Trakwell.ai update.
  • Q2 2023 Benchmark Report: Click HERE to download the report.
  •  

FOOT TRAFFIC TRENDS

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

September 2023: Furniture industry

September 2023 furniture metrics

September 2023: Mattress industry

September 2023 Mattress Metrics

Retail Snippets

By the numbers: Uncovering the digital ad spending by industry in 2023.
 
Targeted marketing: For the retail industry, generative AI means more targeted marketing.


The slow burn: Top challenges faced by emerging brands in 2023.

RANDOM IRRELEVANCE

New Beginnings: Footwear brand Sorel is opening its first pop-up shop this Friday.

 
Look up: Watch live as NASA reveals what’s inside the asteroid sample canister.


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

Read More

Retail Traffic Trends #149: The Curse of Knowledge

While augmented reality might still evoke visions of science fiction, the technology has progressed to the point where it’s ready to enter the mainstream.

This week, we’ll examine the most recent developments in retail technology and explore analysts’ forecasts for the upcoming holiday shopping season..

THIS WEEK’S HIGHLIGHTS

  • Curse of Knowledge: Why product knowledge is the no. 1 customer success factor.
  • 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

week 39 2023 counts

FOOT TRAFFIC TRENDS

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

AR meets physical retail


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!

Click HERE to read more.

Holiday season preparations

This holiday season, running November 1 through December 24, U.S. retail sales excluding automotive are expected to increase 3.7% year-over-year (YOY), according to Mastercard.

Looking back at the 2022 holiday shopping season, inflationary pricing and pent-up demand, coupled with excess savings and rising wages allowed consumers and retailers to navigate the season well.

After years of inventory and spending habits being in flux, the 2023 season is expected to bring a broader rebalancing across categories, channels, and sectors in alignment with macroeconomic trends.

Click HERE to read more about the upcoming holiday season.

Retail Snippets

Carbon neutral: Macy’s hits fast forward on small-format store plans, aims to open 30 new stores.
 
Curse of Knowledge: Why product knowledge is the no. 1 customer success factor.


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

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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

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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.

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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.

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Read More

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