Despite an improved outlook in 2024, we do not have a sunny outlook for online retail. We expect to see continued profitability pressures, market consolidation and regulatory roadblocks.”
Remarks by the Economist Intelligence: EIU tell retailers they will remain under regulatory pressure, and continue to face challenges keeping up with consumer preferences, as shopping at brick-and-mortar stores has encouraged many to expand global physical footprint and re-asses their digital strategy.
What else should retail and consumer goods watch for in the upcoming 2024 year?
Watch Out for Inflation’s Impact:
Keep a close eye on how inflation affects consumer spending. While retail sales are expected to grow, households’ price sensitivity may impact purchase decisions.
Online Retail Challenges:
Online retailers should be prepared for regulatory challenges that may impact profitability. Stay informed about evolving regulations and adapt your strategies accordingly.
Offline Retail Resurgence:
With consumers showing a preference for in-store shopping, consider the potential for offline retail growth. Discount retailers, in particular, may benefit from this trend.
Global Market Expansion:
Monitor opportunities in developing markets for expanding your online sales. Growth opportunities may arise in regions with lower penetration of organized retail.
Food Inflation Concerns:
Keep an eye on food inflation in developing economies, especially in regions like developing Asia. Rising food prices could impact consumer discretionary spending and brand strategies.
Retail Volume Growth:
Retailers should be prepared for a 2% growth in retail volume in 2024. Leverage this growth by understanding consumer trends and preferences.
Online Sales Growth:
Expect online sales to grow at a rate of 10.5% in 2024. Focus on strategies that can help you capture a share of this growth while navigating challenges, especially in mature markets.
These points can serve as valuable insights for retailers in the consumer goods industry, helping them make informed decisions and strategies for the year ahead.