TAKEAWAYS Shaping the Future of the Global Supply Chain
RETAILERS SHOP FOR VOLATILITY FIXES Between ongoing supply chain concerns, increased rent prices, and shoplifting, leading retailers like Nordstrom and Macy’s have been forced to close stores. Despite the volatility, retailers feel the need to keep up with shifting consumer demands. Not surprisingly, they cite a long list of current challenges in NP Digital’s newest report, 2024 Retail Reveal . More than 1,000 retail professionals across the United States shared their trends and fears for the year in the report, listing issues that include adapting to changes in how customers consume advertisements, growing sustainability initiatives, and navigating the ever-evolving role of AI in retail. Survey highlights include: • Supply chain focus. 33% of retailers name supply chain improvements as one of their top priorities for 2024, second only to strengthening brand loyalty. • Artificial intelligence. More than half (53%) of retailers plan to leverage AI to make personalized product recommendations for customers. • Navigating economic uncertainty. To generate sales in today’s economic climate, 56% of retailers say they plan to adjust prices, followed by partnering with influencers on co-branded products (49%). • Rent struggles. Almost half (48%) of retailers say brick-and-mortar rent prices are hurting profits—of which two-thirds (66%) are considering closing their physical storefront. • Rise of retail theft. Theft is a major concern for retailers—more than half (52%) state they feel “very” or “extremely” concerned and are taking action to address it. • Staffing concerns. More than 75% are examining ways to overcome staffing challenges in the new year. • Building up the brand: 37% see strengthening brand loyalty as a winning strategy in 2024.
SMBs EMBRACE GLOBAL TRADE In a world where “local” is king, new data from the 2024 FedEx Small Business Trade Index challenges the narrative, highlighting the impactful role that global trade plays in the U.S. economy and showing surprising strength for small and mid-sized business (SMBs) in particular. With global trade and free trade sure to remain highly debated topics in this election year, how do SMBs view the global marketplace? Here are some insights from the survey: • 96% of small business leaders support increased U.S. trade with global markets, with 85% saying it will help increase job growth and 79% believing it will help their business. • 86% of respondents credit e-commerce platforms for driving global trade and business growth. • 95% advocate for job retraining to enhance U.S. competitiveness on the global stage. • 84% cite shipping delays or disruptions due to geopolitical issues as the main barriers when exporting or importing goods.
What goals are top of mind for retailers in 2024? When asked their priorities for 2024, retailers listed these as some of the most popular :
37% 33% 33% 31% 29% 29% 29% 28% 27% 26% 23% 21% 21%
Strengthening brand loyalty with customers in new ways Supply chain improvements Hiring qualified talent Reducing overhead costs Increasing social commerce activities Reducing theft in-store Faster delivery times Sustainability programs to attract younger consumers Creating more frictionless shopping experiences Artificial intelligence integrations Navigating inflation Subscribe-and-save options Allowing buy-now-pay-later options
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Source: NP Digital
16 Inbound Logistics • April 2024
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