5 Predictions for 2024’s Retail Landscape: From Brick-and-Mortar to Click-and-Order

The last few years have kept retailers on their toes when it comes to living up to evolving consumer preferences. From shopping in physical stores and flaunting their chic shopping bags in malls to ordering online while sipping their morning coffee, prioritizing convenience, customers now have started to embrace a bit of both: online and offline shopping experiences.

Despite a significant appetite for in-store shopping experiences, consumers also seek the convenience of online shopping. In the 2023 holiday season, 85% of customers planned to purchase at least one item in a physical location, according to McKinsey. Meanwhile, a survey by Bank of America found that 42% of customers intend to spend more online over the next 12 months.

In this blog, we’ve outlined five key predictions and trends that will shape the retail industry in 2024, from AI to omnichannel experiences and marketing strategies. Let’s dive in!

AI to Make Significant Strides in Retail

In 2023, Artificial Intelligence made huge waves in the retail sector, with retailers looking to use it to drive efficiency across several areas of their business. As per Statista, 73% of retailers are already using AI. Over the next 12 months, a further 15% of retailers plan to implement the technology. From marketing and financial forecasting to customer service and market analysis, retail leaders will turn to AI to achieve more operational efficiency and deliver high-quality, and even hyper personalized customer experiences in 2024.

As more retailers plan to integrate AI into their retail operations, technology vendors have also started to strengthen their AI capabilities. In the past few months, the industry has seen several collaborations aimed at bringing AI to the retail’s doorstep.

In October 2023, Teamwork Commerce partnered with Google Cloud to develop new generative AI features in its industry-leading Mobile Point of Sale (POS) and Order Management System (OMS). With this collaboration, Teamwork Commerce aims to redefine and uplift the retail experience for enterprise retail organizations, providing opportunities to improve efficiency, customer engagement, and sales.

Omnichannel is Now a Necessity

The omnichannel boom has enabled customers to shop at their convenience. Rather than making impromptu purchases, customers now are more likely to research a product online before they finally buy it. In addition to that, many shoppers prefer purchasing using the Buy Online, Pickup In-store (BOPIS) option to enjoy both the in-store experience and online convenience.

The demand for unified shopping experiences is only set to increase in 2024. Omnichannel retail is now of vital importance to retailers. Retailers who can provide their customers with a connected shopping environment are more likely to attract and retain long-term customers.

Modern Payment Methods to Reach New Heights

Many retailers are embracing smart payment solutions such as tap-to-pay, pay-by-link and QR code payments to cater to the diverse needs of customers. These solutions not only enable retail associates to complete transactions more efficiently but considerably reduce checkout queues.

Given the increasing need for smooth customer interactions, 2024 is set to push retail boundaries with these advanced solutions and bring them to the retail mainstream. Eventually, it will become imperative for retailers to deploy modern payment solutions to provide hassle-free checkout experiences to their customers.

Growth of eCommerce

Insider predicts retail e-commerce sales will continue to grow 10.1% YoY, while non-e-commerce sales will only grow 2.0% YoY in 2024. The forecast aligns with recent estimations of Statista, which indicate a new peak of $1.5 trillion for revenue in the US e-commerce market by 2028. These projections strongly indicate a further spike in e-commerce sales.

In order to capitalize on this e-commerce buzz, retailers need to be able to provide a connected experience to shoppers, providing them with clear visibility of available stock, estimated delivery times, and real-time tracking abilities.

Demand for Sustainability

According to Statista’s Consumer Trends 2024 report, sustainability is at the forefront of shoppers’ decision-making. Ethical spenders plan to purchase from eco-friendly brands even during challenging times. It is clear that sustainability isn’t just a buzzword anymore, and will be a crucial part of consumer buying decisions throughout 2024 and beyond.

Overall, we anticipate that sustainability is likely to be on par with high-quality shopping experiences. With growing cautious spending and the rise of conscious consumerism, delivering high value to the customer, sustainably, should be a priority for retailers to attract customers and generate higher sales. Those who can deliver high-quality unified shopping experiences sustainably can well cater to evolving consumer preferences in 2024.

Integrating various retail operations is a must to provide connected shopping experiences for customers. Looking for an all-encompassing software to deliver top-tier unified shopping experiences? Book our demo here.