CONSUMER
I n 2024 , evolving consumer preferences , shifting retail models , improved technical capabilities , and other key trends will drive change in US retailing . In adapting to these trends and the new retail environment , retailers need to respond to short-term consumer needs while securing longer-term success .
Alternative retail channels represent
1 incremental opportunities We expect cautious spending behaviours among some shoppers to push more consumers toward alternative , typically price-competitive retail models such as resale and marketplaces . For retailers , these alternatives present potential incremental business opportunities , and companies can consider whether the addition of a secondhand channel or a marketplace provides a complement to their core business . To suggest the scale of the opportunity , Coresight Research 1 estimates that the US fashion resale market will grow by 13.1 percent , year-over-year , in 2024 , to $ 36.0 billion .
We are seeing the growth of online marketplaces as an alternative channel . In the past two years , many retailers have launched online marketplaces , including Kohl ’ s , Macy ’ s , Michaels and Shein .
Recommendations for retailers
• Leverage physical stores to drive customer traffic , as shoppers can bring in secondhand products and browse to make purchases in the same trip .
• Focus on personalization by leveraging customer data and feedback to enhance alternative retail models .
• Launch curated marketplaces to meet consumer demand .
Consumers ’ attention span
2 is declining We appear to be seeing the gradual ‘ death of the attention span ’, and we see no reason for that trend to let up in 2024 . The average consumer ’ s screen attention span has decreased from 150 seconds in 2004 to just 47 seconds in 2023 , the American Psychological Association states . This has implications for retailers , which must compete more aggressively for the attention of shoppers . This has implications for US retail , such as reduced brand engagement and lower conversion rates , affecting retailers ’ revenues .
However , shorter attention spans could also lead to impulse buying , on which retailers should look to capitalize .
Recommendations for retailers
• Make marketing messages and product displays more engaging and attentiongrabbing , such as through gamification .
• Leverage shoppable video and livestreaming to attract shoppers , including those looking for greater engagement and even entertainment .
• Invest in data / artificial intelligenceenabled content for personalization .
Sustainability remains a concern
3 Despite sustained and new pressures on consumers , sustainability remains a key concern for US shoppers . Coresight Research data confirms the continued demand for sustainability initiatives among US consumers : In a survey conducted in September 2023 , 37 percent of US consumers said that sustainability affects their shopping to at least some extent . Our survey found that consumers are most concerned about the aspects of sustainability that they can most obviously see and feel , such as the use of recycled and recyclable packaging .
Recommendations for retailers
• Source items from environmentally conscious suppliers and highlight the ecofriendly aspects of your offerings through marketing and communication channels .
• Retailers are likely to get the best bang for their buck by focusing on aspects of sustainability that consumers can see for themselves , rather than issues earlier in the supply chain . For example , they can implement sustainable packaging practices .
• Authority in sustainability requires commitment over the long term . Many retailers should look to create and promote a transparent supply chain , and adopt green initiatives in operations , such as energy-efficient practices .
Retail crime is in the spotlight
4 Heightened concern about retail crime among US retail companies is shared by consumers , whose shopping behavior is likely to be affected by retailers ’ measures to combat theft . A Coresight Research survey conducted in July 2023 found that US consumers are aware of the current theft-prevalent environment and are concerned about what it means for them : 56 percent of respondents are concerned ( moderately , very or extremely ) that stores serving their community may be closed due to retailers experiencing high levels of theft . Seventeen percent would shop elsewhere and 25 percent would move online if their local store put items under
With online shopping set to continue growing , retailers should find ways to leverage their physical stores .
20 www . insideretail . us December 2023