"This year, consumers fretted about economic uncertainty, leading to a slowdown in sales growth. In the second quarter, total retail sales growth dipped to under 1% year-over-year - a rate so low that, aside from Q2 of 2020, has not been seen since 2009. With what dollars consumers have opted to spend in 2023, the trend of hybrid shopping has continued, with nearly 60% of consumers across the globe preferring online to in-store shopping, according to GWI research."
"Meanwhile, the world has continued to become more shoppable. Interactive ad formats such as QR codes have infiltrated streaming and premium video, while social giants such as TikTok are expanding their shopping tools, making it easier than ever for brands to drive conversions at speed. At the same time, retailers have invested more in their own proprietary media networks, selling to brands directly, enticing them with the promise of first-party data as cookie deprecation looms on the horizon."
Retail faces significant disruption in 2024 driven by AI innovations, expanded shoppable formats, and tensions between retailer-owned media networks and large media players. Economic uncertainty produced a slowdown in sales growth, with Q2 retail growth falling below 1% year-over-year. Hybrid shopping strengthened in 2023, with nearly 60% of global consumers preferring online over in-store. Interactive formats like QR codes and expanded social commerce tools accelerate on-platform conversions. Retailers are building proprietary media networks to sell directly to brands and leverage first-party data as third-party cookies phase out. AI applications are expected to deliver cost savings and supply-chain optimizations across discovery and media operations.
Read at The Drum
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