This year, retailers have felt the impact of the uncertainty in the economy. And yet, the National Retail Federation predicted holiday shopping would reach pre-pandemic level highs with a modest annual sales growth rate between 3% and 4%.
Looking to 2024, although the hype around ecommerce continues to expand, brick-and-mortar will remain relevant. With the growth of creative tactics like pop-up stores and customer experience incentives, in-store shopping is evolving and adapting with the changes in the industry.
In the year ahead, retailers will continue to face newly emerging and ongoing challenges in the in-store space of the retail industry.
Increasing E-commerce Competition Sparks Need for Differentiation
Today, almost every retailer has an online presence. Younger generations are more likely to discover new products by browsing online and through influencer reviews versus exploring physical in-store shelves, making ecommerce more essential for retailers than ever before. Every retailer is focused on competing more effectively with Amazon, and the advent of two Prime Big Deal Days in 2023 exuded considerable influence on the timing and nature of consumer behavior.
The continued rise in ecommerce has only heightened challenges for brick-and-mortar. Retailers seek to establish competitive pricing strategies while ensuring profitability. Additionally, retailers strive to integrate new technologies like POS systems and to manage inventory while balancing customer supply and demand. With the increase in ecommerce competition, addressing these issues must be a priority.
Retailers Must be Poised for Agility
Customer preferences are constantly changing. In the new year, retailers will need to be flexible and adapt to altering trends like personalization and influencer marketing to focus on elevating the in-store customer experience.
To maintain a competitive edge, retailers need to take advantage of touchpoints to stand out in the marketplace.
For example, a retailer can implement hyper-localized experiences with reliable products into their marketing strategies to help build a reputation of being both nationally consistent and locally relevant. Similarly, retailers can create pause moments to grab customer attention with digital signage and smart in-store displays dispersed throughout the store.
The Year of Sustainability
Sustainability will remain a large theme for the retail industry in 2024 as it dominates global conversations about environmental concerns like climate change and pollution. The pressures from emerging extended producer responsibility (EPR) legislation and customer behavior to adapt sustainable business practices will continue. As retailers commit to sustainability, it’s important for them to raise awareness of their practices to customers. In-store signage and displays are proven ways to call out a retailer’s sustainable actions and gain customer attention.
2024 Will be a Year of Strategic Pivots for Retail
The new year will bring challenges both new and familiar to the forefront of the retail industry. With the enduring rise of ecommerce, brick-and-mortar will need to evolve to keep up. As 2024 begins and the economy remains uncertain, innovative retailers can feel confident they are equipped with the right in-store tools for success.
As President of In-Store Experience, Tim Ohnmacht creates and implements innovative solutions that attract, engage and motivate retail customers on their path to purchase. He unites essential resources across In-Store Marketing, Packaging, Fulfillment, and Agency Solutions to deliver frictionless, scalable execution. Tim manages the speed and quality of internal collaboration to leverage our integrated offering and accelerate Quad’s growth.
Tim joined Quad in 1994 as a Corporate Trainee and quickly filled sales leadership roles starting with International Sales as well as National Sales Director for Parcel Direct. His excellent track record in sales and his affinity for international business resulted in his promotion to Managing Director of Quad/Graphics-Europe in 2011. He continued to take on leadership roles of increasing responsibility, including General Manager for Publications & Catalogs, President of Marketing Solutions and President of Quad South America prior to his current position.
Tim holds bachelor’s degrees in Economics and Spanish from Marquette University.
