Despite economic clouds, retailers see sunshine. Technology like artificial intelligence (AI) is fueling optimism for growth in 2024, even amidst inflation, labor shortages, and global tensions.
While the shadow of past disruptions may linger, a surprising wave of optimism is sweeping the retail industry as we enter 2024. This sentiment, despite ongoing economic uncertainties, stems from a newfound belief in the transformative power of technology, particularly the emergence of generative AI. Retailers envision AI streamlining operations, boosting productivity, and creating more captivating customer experiences – all contributing to both financial growth and lasting success.
However, it's not all sunshine and roses. Inflation remains a pressing concern, squeezing profit margins and demanding strategic pricing adjustments. Labor shortages and supply chain disruptions continue to test adaptability, requiring innovative solutions to maintain smooth operations. These challenges are compounded by geopolitical tensions, adding further complexities to the global retail landscape.
Despite these hurdles, there's a sense of opportunity brewing. In our Global Retail Outlook 2024 report, we asked 200 retail leaders around the globe to provide their expectations for revenue and operating margin for the industry as a whole. In this report, we assess the overall health of the retail sector and retailers who can effectively navigate the changing market terrain are poised for significant growth.
We present a deep dive into three systemic challenges and three opportunities that will define the retail industry not only in the year ahead, but into the next decade and beyond.
Challenges:
Opportunities:
Evan Sheehan, Retail, Wholesale & Distribution Sector Leader, Deloitte Global says:
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Anastasiia Lytvynenko
Deloitte Ukraine PR & Communications
alytvynenko@deloittece.com