Retail Traffic Trends #125: The Q1 Benchmark Report has Arrived!

We’re excited to announce the release of our Q1 benchmark report, featuring the latest insights and trends in the retail industry.

We’ll be diving into the data and highlighting key findings that will help you better understand consumer behavior and make informed decisions for your business.

Plus, we’ll be sharing the most recent retail traffic trends to keep you up-to-date on the industry’s performance.

THIS WEEK’S HIGHLIGHTS

  • Bad customer experiences: Where customers are drawing the line.
  • Computer vision: How computer vision is transforming inventory management.

  • 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.

Computer Vision transforms inventory management

Computer vision is an AI field that uses cameras and images to help computers recognize and process objects, generating real-time data. This data can be analyzed to improve sales and enhance customer experience. 

 

Retailers can optimize human resources and improve inventory management by implementing computer vision technology. This technology can aid in inventory tracking, prevent misplaced items, and reduce associated costs. Computer vision can also be utilized for inventory auditing and to improve forecasting accuracy, leading to a reduction in overstocking.

 

RIS’s 29th Annual Retail Study found that more than 40% of retailers plan to adopt computer vision technology in the next two years.

 

Click HERE to learn more about the future of inventory management.

Traffic jams vs. bad customer experience

As I think most of us can agree, sitting in traffic jams can be about as unbearable as it gets, especially after a long day.

 

As it turns out, people have very strong feelings about traffic jams. Although most people hate traffic jams more than most things, 60%, of consumers would rather sit in a traffic jam than have a poor customer experience, according to a Telus International survey.

 

The survey also found that nearly 48% of consumers believe that customer experiences should get significantly faster, followed by 43% saying interactions should become more personalized and 36% saying there should be more self-serve or automated options,” Maria Pardee, chief commercial officer at Telus International, said in the release.

 

Click HERE to read more.

Retail Snippets.

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

 

One hit wonders: 3 pandemic retail tech trends that have lost their luster.

 

Bed Bath & the great Beyond: How the home goods giantwent bankrupt.

Random Irrelevance

The last disc: UK blocks Microsoft’s $69 billion takeover of Activision Blizzard.

 

Grounded: SpaceX Starship grounded indefinitely By FAA after explosion.

 

Natures thread: How good is secondhand apparel for the planet, really?

Read More

Retail Traffic Trends #124: Slow Growth – The New Normal

US retail sales are expected to reach $7.334 trillion this year, a 3.3% year-over-year growth.

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 Q2 and beyond.

THIS WEEK’S HIGHLIGHTS

  • A mall less future: Will “Zombie Malls” ever return?
  • A slow roll: Breaking down retail’s ‘new normal of slower growth’

  • Q4 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.

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

US retail sales are expected to reach $7.334 trillion this year, reflecting a 3.3% year-over-year growth. However, Zak Stambor, a growth analyst at Business Insider, anticipates a new normal of slower growth.

Although inflation growth is slowing down month over month, it remains high compared to the previous year, with a 5% increase in March 2022 as reported by CNBC.

In addition to inflation, OPEC+ recently announced a cut in oil output, which could lead to higher gas prices and potentially impact consumer spending.

Looking ahead, retail sales growth is expected to range between 3.3% and 3.5% annually until 2027, representing a significant decline from last year’s growth of 8.1% and 17.9% in 2021.

Click HERE to learn more.

Malls gain momentum

Back in the 1980s, there were about 2,500 malls nationwide. Today, only around 700 malls are still operating. Analysts predict that only about 150 will survive over the next ten years.

Despite the fact that there were 1,954 store closings in malls this year, there have been 4,432 new store openings by retailers in the U.S. This has resulted in a net addition of 2,478 stores so far this year, even with the closures.

In 2021, the retail industry had a net addition of 68 stores, indicating a significant improvement in the current year. This positive development suggests that malls in the United States are gradually regaining their appeal to consumers, and retailers are showing renewed confidence in physical storefronts.

Click HERE to learn more about the current state of US malls.

Retail Snippets.

Virtual resale: American Eagle brings secondhand clothing shop to Snapchat.

Happily slow: Shoppers are showing more willingness to wait for deliveries as concerns grow over the cost of fulfillment

Customer loyalty: America’s most trustworthy retailers of 2023.

Random Irrelevance

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

The chosen ones: Restaurant prices are rising faster than grocery prices for the first time since inflation ran hot.

Payday: Apple launches its savings account with 4.15% interest rate.

Read More

Retail Traffic Trends #123: March 2023 Metrics are in! 📊🕰️

The furniture and mattress industry has faced unprecedented challenges over the past year, but in March 2023, there were signs of improvement.

The furniture industry saw an impressive 11% increase in conversion rates, while the mattress industry experienced a similar 11% 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

  • March in the furniture industry: How the furniture industry increased conversion rate by 11%.
  • March in the mattress industry: Less foot traffic, higher average ticket, and more time spent with customers.
  • Q4 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.

March 2023: Furniture industry

March 2023: Mattress industry

Retail Snippets

Finding the line: Retail industry legislation and policies to watch in 2023.

 

2023 Predictions: Walmart set to close all Stores in Portland amid record-breaking retail theft.

 

New-age: Can NFTs revolutionize the retail industry?

RANDOM IRRELEVANCE

DuckAssist: DuckDuckGo Releases Its Own ChatGPT-Powered Search Engine, DuckAssist.

 

Earth 2.0: NASA has discovered an Earth-sized planet orbiting in the habitable zone of its star.

 

Rise of the bots: U.S. considers vaccinating chickens as bird flu kills millions of them.

Read More

Retail Traffic Trends #122: Out with the Old, In with the New

From historically digital stores going physical, to physical stores going digital, it has become increasingly hard to predict where the industry is headed.

After 7 years, Amazon is officially closing all of its book stores, switching its focus to its physical grocery stores. And as that happens, physical grocers are going digital to embrace the online grocery shopping trend.

This week we uncover the shifts we are seeing major retailers take over the past few months.

THIS WEEK’S HIGHLIGHTS

  • Amazons Brick and Mortar fall: The journey from digital, to physical, and back to digital.
  • A new beginning: Apple to open first company-owned retail store in India.

  • Q4 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.

Amazon exits physical retail

Despite shoppers returning to physical stores, Amazon has decided to close all of its bookstores, 4-star stores, and pop-ups.

 

Amazon will continue to expand its grocery stores but is abandoning its roots of selling books in a physical store.  Aside from Whole Foods, including locations opening this month, the company runs 85 grocery-oriented stores: 58 Amazon Fresh in the U.S. and U.K. and 27 Amazon Go convenience stores.

 

In Q1 of this year, Amazon saw a 3% decline in its online retail sales, yet its physical stores saw a dramatic increase year over year.

 

So why close all their stores?  Amazon’s business is centered around logistics, technology, advertising, and as of late, less and less retail.

 

Click HERE to learn more.

Malls gain momentum

Malls in the United States are slowly reaching full capacity after years of lackluster foot traffic.

 

Simon Property Group reported an occupancy rate at its U.S. malls and outlet centers of 93.9% as of Jan 30, up from 91.8% a year earlier. Although US malls saw 1,954 store closings this year, retailers in the U.S. have announced 4,432 new store openings.

 

Last year, the retail industry finished the year with a net addition of 68 stores. Even with all of the closures, this year has seen a net of 2,478 openings.

 

Click HERE to learn more about the current state of US malls.

Retail Snippets.

The Automated store: Walmart expects 65% of stores to be serviced by automation in 2026.

 

A new beginning: Apple to open first company-owned retail store in India.

 

Customer loyalty: America’s most trustworthy retailers of 2023.

Random Irrelevance

Car of the year: Hyundai Ioniq 6 named World Car of the Year.

 

The chosen ones: NASA reveals astronaut crew for historic Artemis II moon mission.

 

Payday: Researchers find severe vulnerabilities in garage door openers and other smart devices.

Read More

Retail Traffic Trends #121: Change is coming, are you ready?

While some trends come and go, there were a few trends that have stayed with consumers throughout the year.

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

THIS WEEK’S HIGHLIGHTS

  • Monthly Roundup: Inside the latest trends.
  • NRF2023: A recap of what experts expect to see in the coming months.
  • Q4 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.

NRF2023: Top takeaways

In January, thousands of retail change-makers from around the world came together at the National Retail Federation’s Big Show in New York City to talk about the latest trends and innovations.

 

As no surprise, artificial intelligence was one of the major talking points of the event. Retailers are turning to AI for churn prediction and product recommendations based on individual preferences, while others have found use-cases for it in their marketing.

 

Similar to what we discussed in our blog last week, ‘Phygital’ retail or the blend between the two worlds was a major talking point of the event.

 

Click HERE to learn more customer experience trends from NRF2023.

Monthly Roundup

While some trends come and go, there were a few trends that have stayed with consumers throughout the year.

 

Similarly to what we found earlier this year, 40% of consumers are still willing to pay extra for climate-conscious products. 63% of shoppers would also recommend a product if they think it isn’t very harmful to the planet.

 

Security is still a major concern for many shoppers. In 2021, retail organizations saw a 75% increase in cyberattacks compared to the year before. If customers don’t feel that their personal information is kept safe, they become far less likely to make purchases at your online store.

 

Lastly, appointment shopping, which emerged at the beginning of the pandemic, is becoming a premier in-store experience that many customers are looking to have.

 

Click HERE to learn more about the latest retail trends.

Retail Snippets.

Holdiday forecast: Why the retail sector is grappling with shifting consumer behavior.

 

Fast or last: Amazon launches 2-hour delivery from select Rite Aid stores.

 

Food games: Features and steps for gamification in the food retail industry.

Random Irrelevance

Warning signs: Why tech leaders call for a pause on ChatGPT.

 

Portland’s best: Two Portland restaurants named James Beard award winners in 2023.

 

A new perspective: Uber Eats is shutting down thousands of virtual restaurants to make the app less spammy.

Read More

Retail Traffic Trends #120: The Next Retail Wave

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

It can answer questions, write poetry, create texts in the voices of specific authors, do translation, and more.

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.
  • Livestream shopping: Why US consumers are not picking up on the popular trend.
  • 30 Under 30: Meet the young entrepreneurs who are reshaping the retail industry.

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.

Livestream shopping struggles to take form

Despite livestream shopping events skyrocketing in popularity in China and many companies in the US dedicating resources to virtual events, consumers in the US struggle to see the value.

 

A recent report by Morning Consult found that Nearly 80% of US adults have never participated in a live shopping event, and less than a third of U.S. adults have seen, heard of, or read about live shopping events overall.

 

Among the reasons why, 35% of respondents said they were concerned about product quality, seller integrity, and shipping concerns, and  54% of respondents said they were not comfortable shopping through social media platforms.

 

Click HERE to learn more about the latest retail trends.

Retail Snippets.

Holdiday forecast: Easter spending is expected to reach a record $24 billion this year.

 

30 Under 30: Meet the young entrepreneurs who are reshaping the retail industry.

 

Emotions drive sales: Understanding the power of behavioral economics.

Random Irrelevance

Bad spaniels: U.S. Supreme Court hears Jack Daniel’s trademark fight over dog toy.

 

EVOO coffee: Starbucks is bringing olive oil-infused coffee to a few locations in the U.S. this week.

 

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

Read More

Retail Traffic Trends #119: Retail’s Artificial Eye

While AI was once a far-fetched idea, companies such as Dal-e have proven the power of AI through their text-to-image generator.
 
But how far is AI from becoming a valuable asset for the retail industry?
 
This week we diverge into the future of the industry and how to keep your store secure in the new world of retail.

THIS WEEK’S HIGHLIGHTS

  • Failed Orbit: Pandemic trends that failed to reach orbit.
  • Finding the balance: The blending of the physical and digital worlds.
  • AI in retail: Gimmick or Game-changer?
  • Q4 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.

AI in retail: Gimmick or Game-changer?

While AI was once a far-fetched idea, companies such as Dal-e have proven the power of AI through their text-to-image generator.
 
Automation, data, and technology, like machine learning algorithms, are used in retail AI to give customers highly customized shopping experiences.
 
By 2028, the global AI in retail market size is expected to reach $24.1 billion. The growth comes from the endless amount of possibilities AI brings into the market, such as COVID-19 impact analysis, higher supply chain capabilities, higher efficiency in saving cost and optimizing the experience for customers.
 
While that all sounds amazing, only time will tell how long it will take for AI to meet these insane expectations.

 

Click HERE to learn more.

Computer vision in retail

Retailers who successfully leverage computer vision with diagnostic, proactive, and predictive analytics are gaining the much-needed competitive edge.
 
Computer vision provides video and audio for additional context, complementing other types of data.  No matter if you are at your store for 9 hours a day, or an hour a week, it is impossible to see everything the way artificial intelligence can comprehend every second of the day.
 
The combination of foot traffic data and AI allows you to not only see exactly how long a customer was in a store, but you can see exactly where customers are spending their time.

 

Click HERE to learn more about computer vision.

Retail Snippets.

Personalization: How technology is making the retail industry more efficient and improving the customer experience.

 

Emotions drive sales: Understanding the power of behavioral economics.

 

Coming to a Target Near You: Return a purchase without leaving your car.

Random Irrelevance

Fake features: Samsung caught faking zoom photos of the Moon.

 

Moon Time: What time is it on the moon? Europe pushing for lunar time zone.

 

True cost: The extraordinary costs behind ChatGPT and generative AI.

Read More

Retail Traffic Trends #118: February 2023 Metrics are in! 📊🕰️

As we start March, it’s time to look back on February to see how top-performing stores performed in the second month of 2023.

With increases in foot traffic for multiple industries, both the furniture and mattress industries found ways to start the year on a high point.

This week we take a look at the top 20% of stores with the highest conversion rates in both the furniture and mattress industry to see how February played out.

THIS WEEK’S HIGHLIGHTS

  • February in the furniture industry: How the furniture industry increased daily revenue by 9%.
  • February in the mattress industry: More foot traffic, higher average ticket, and more time spent with customers.
  • Q4 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.

February 2023: Furniture industry

February 2023: Mattress industry

Retail Snippets

Finding the line: Retail industry legislation and policies to watch in 2023.

 

2023 Predictions: Walmart set to close all Stores in Portland amid record-breaking retail theft.

 

New-age: Can NFTs revolutionize the retail industry?

RANDOM IRRELEVANCE

DuckAssist: DuckDuckGo Releases Its Own ChatGPT-Powered Search Engine, DuckAssist.

 

Earth 2.0: NASA has discovered an Earth-sized planet orbiting in the habitable zone of its star.

 

Rise of the bots: U.S. considers vaccinating chickens as bird flu kills millions of them.

Read More

Retail Traffic Trends #117: Perfecting the Phygital Experience.

The Pandemic brought on many retail trends that will stay for the foreseeable future, but also created trends that are worth leaving behind. 

Almost three years after the pandemic, some retail tech innovations have hit their expiration dates.

This week we look at how your organization can use new trends to leverage the blending of the physical and digital worlds.

THIS WEEK’S HIGHLIGHTS

  • Failed Orbit: Pandemic trends that failed to reach orbit.
  • Finding the balance: The blending of the physical and digital worlds.
  • Q4 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.

Perfecting The Phygital experience

The term phygital relates to how your organization can leverage the blending of the physical and digital worlds.

Although Big-Box retailers have long thrived in physical selling, during the pandemic, the pendulum swung even further toward digital, as meeting in person became increasingly difficult.

An older but great example of this is the Twizzard. During Black Friday weekend in 2014, Mall of America used hashtags on Twitter to power a snowstorm inside the retail complex.

The more people tweeted with the #twizzard hashtag that weekend, the lower the temperature got on a digital thermometer in the center of the mall. When there were enough tweets and the temperature hit freezing, the skies opened and it started to snow INSIDE the mall.

The attention from the Twizzard increased foot traffic by 10 percent over the previous year.

Click HERE to learn more about how to blend the two worlds.

Target doubles Down on E-commerce

The Pandemic brought on many retail trends that will stay for the foreseeable future, but also created trends that are worth leaving behind. 

Almost three years after the pandemic, some retail tech innovations have hit their expiration dates.

Instagram announced earlier this month that it is ending its live shopping feature that lets users tag products in livestreams beginning in March. Although live shopping is wildly popular in China, it has failed to catch on in America. 

Around the same time, Walmart announced that it will be closing its last pickup-only stores. Curbside pickup continues to be a trend some shoppers choose over entering the store, it is not enough to keep pickup-only stores open.

Click HERE to learn more about Pandemic trends left behind.

Retail Snippets.

Personalization: Networking and personalization to rule the retail industry in 2023.

 

Green future: REI requires suppliers to phase out ‘forever chemicals’.

 

Coming to a Target Near You: Return a purchase without leaving your car.

Random Irrelevance

Microsoft meets apple: Microsoft’s Phone Link app now lets you use iMessage from your PC.

 

Moon Time: What time is it on the moon? Europe pushing for lunar time zone.

 

‘The Mandalorian’ Review: Netflix says it ‘updated’ new password-sharing policies that had users melting down.

Read More

Retail Traffic Trends #116: Retail Giants Prepare for the Next Big Thing

Well-known retail giants Home Depot and Walmart delivered a grim outlook for the future of retail spending in 2023.

Although both Home Depot and Walmart sell an assortment of goods, their earnings give us a glimpse of what is to come.

This week we talk about the year to come and take a look at targets plan to double down on e-commerce in 2023.

THIS WEEK’S HIGHLIGHTS

  • Next Day Delivery: Targets $100 million sortation centers.
  • Growing pains: Walmarts gives us a glimpse Into the future.
  • Q4 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 Giants prepare for tough year

Well-known retail giants Home Depot and Walmart delivered a grim outlook for the future of retail spending in 2023.

Home Depot’s stock fell after the report, while Walmart’s stock essentially flatlined as investors digested what the news meant for the economy. Although both Home Depot and Walmart sell an assortment of goods, their earnings give us a glimpse of what is to come.

Walmart’s Chief Financial Officer Rainey said, “While the supply-chain issues have largely abated, prices are still high, and there is considerable pressure on the consumer.”

Last quarter, retail shopping showed signs of a slowdown in spending. As more companies release their earnings reports, further insights will be provided into different types of goods that are being impacted.

Walmart said it expects same-store sales for its U.S. business to rise by 2% or 2.5%, excluding fuel, in the fiscal year. Home Depot said it expects sales growth for the fiscal year to be roughly flat.

Click HERE to learn more.

Target doubles Down on E-commerce

Target said Wednesday that it will spend $100 million to build a larger network of supply chain hubs, coined sortation centers, to speed up and lower the cost of delivering online orders.

Despite struggling with a glut of inventory and a noticeable pullback in sales, Target is betting on e-commerce growth to save the day in 2023.

Over roughly the past six years, Target has leaned into a strategy of “stores as hubs.” It has turned its approximately 1,950 stores into mini warehouses where employees help pick and pack the majority of the company’s online orders. Nearly 97% of its total sales were fulfilled by a store in the fiscal third quarter.

Up to 40% of packages that go through the new sortation centers and get delivered by Shipt arrive at customers’ doors the next day — and Target aims to get that number higher.

Click HERE to read more about Targets newest mission.

Retail Snippets.

Personalization: Networking and personalization to rule the retail industry in 2023.

 

Growing pains: Struggling Bed Bath & Beyond closing 150 more stores.

 

BNPL update: Apple Pay Later beta testing expands; monthly ‘buy now, pay later’ option also in the works.

Random Irrelevance

Call of Duty: Microsoft’s $69 billion Activision takeover in doubt as UK regulator raises competition concerns.

 

Weather watch: New and stronger warming event is developing in the Stratosphere, which will collapse the polar circulation.

 

Lock and key: Netflix says it ‘updated’ new password-sharing policies that had users melting down.

Read More

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