Retail & Distribution
30 January 2024
Discover how AI is reshaping the retail trends in 2024 with personalized shopping, sustainability, and the rise of mobile commerce. Stay ahead with insights on the future of retail.
Analysing trends is something that Cegid continually does in an effort to stay ahead and adapt its product roadmap to address any new challenges. More than ever, retailers need modern, open and adaptable tools and IT systems. To learn more about retail trends in 2024, download our ebook.Download
Retail Trends 2024: Generative AI Revolution and Future Shopping Experiences
- According to a report by McKinsey, retailers who have implemented Artificial Intelligence at scale have seen an operational cost reduction by 15% and revenue increase by at least 10%.
- Mobile is becoming the preferred personal shopper and training tool for store staff. Deloitte predicts that by 2024, over 60% of online traffic will come from mobile devices, further cementing it as a primary shopping tool.
- There’s been a breakthrough in payment methods, driven by numerous innovations (Tap to Pay, Pay by link, instant payments, BNPL, cryptocurrencies, QR codes etc). The payment ecosystem will continue to evolve with McKinsey forecasting that by 2024, digital wallets and contactless payments will account for over 50% of all global retail transactions.
- Consumers care more about the environment and seek value for money, so second hand and renting apparel is increasingly popular. As per a report by Deloitte, the market for second-hand goods and rental services will continue to grow, potentially reaching a valuation of over $25 billion by 2024, as consumers increasingly prioritize sustainability.
- The employee experience (or EXTech) has become one of the main priorities for companies wanting to retain talent, says the latest Hype Cycle report from Gartner.
- IT security and compliance are increasingly important as cyber-attacks continue to rise. According to Gartner, 68% of companies will invest more in 2023 on cybersecurity than previous years; and 89% of them will move to a “distributed cloud” model by 2025.
- The future of retail belongs to “Composable Business”: Gartner estimates that by 2024, nearly 60% of enterprise-level retailers will have adopted a composable commerce approach, leveraging modular, flexible IT systems to stay agile and responsive to market changes.
- Despite tentative steps, there’s still likely to be further experimentation in Web 3.0, the metaverse and cryptocurrencies as consumers move towards a third wave of the internet. McKinsey forecasts that by 2024, at least 10% of global retail giants will have established a presence in the metaverse, offering customers new ways to explore products and services.
Consumers embrace mobiles as their personal shopper
The amount of time we spend on our mobiles continues to grow at a rate of about 25% each year. Over half the time we spend surfing the web is now done via a mobile device: 55.5%, according to a report by We Are Social and Hootsuite published in July 2022, up from 52% the previous year. And consumers (as well as retailers) are embracing mobile devices as personal shopping assistants online and in stores.
Deloitte suggests that by 2024, mobile commerce sales could make up to 70% of total e-commerce sales, as retailers invest in mobile-optimized websites and apps.
The store of the future will be one that offers the best customer experience and relies on mobiles for heightened employee engagement.
Second hand, CSR and renting: new business models in retail
With consumer consciousness on the rise, McKinsey predicts that retailers who adopt sustainable practices could see a 20% increase in brand loyalty.
People are switching their allegiance to greener and more sustainable shopping options and retailers need to take heed. Market Data Forecast predicts that the global rental market for clothing will be worth around $2bn by 2026, twice the amount today. Current estimates put the second-hand market for clothing, shoes and accessories as representing 3 to 5% of the total revenue of the retail sector, according to a study by Boston Consulting Group and Vestiaire Collective.
Retail Trends 2024: Customer and employee experience are equally important
Employee satisfaction and workforce management (EXTech) are to become high priorities for retailers, says Gartner’s latest Hype Cycle for Retail Technologies 2022. Gartner’s research indicates that by 2024, companies that excel in both areas will outperform their competitors by 20% in sales growth.
The recent crisis and digital technologies have fundamentally changed the way employees view their relationship with their employer. During 2021, nearly 50 million people left employment in the United States. It’s become a worldwide phenomenon known as the “the great resignation” or “The Big Quit” as people sought new meaning and balance from traditional working lives. The issue of retaining talent is now a major concern.
To attract talent and retain quality staff, Gartner advocates a more “human-centric” and less “transactional” management approach.
Retailers are also coming to realise that the employee experience should be considered as important as the consumer one. After all, a better trained employee using modern-day technologies (real-time information on stocks and orders, click & collect etc.) will serve customers well and they’ll feel more committed.
The store of the future will be one that offers the best customer experience through sound employee engagement.
Retail Trends 2024: AI Innovations and Consumer Trends in 2024″
Get ahead in retail with a look at 2024’s top trends, including breakthrough AI applications, evolving payment methods, and sustainable consumer choices. See how these factors shape the future of retail.Download