Retail in Review – May/June 2023: Industry Recovery Despite Shrink Concerns 

As we find ourselves at the half-way point through 2023, the global retail landscape continues to keep the sector on its toes. However, we’ve kept our finger on the pulse of the latest retail news and industry developments so that you don’t have to.

In our last Retail in Review blog, we explored why US sales had dropped-off while the UK market rallied, and took a look at how self-checkout was revolutionizing the landscape. Read below to read some retail market updates, and find out how the retail industry has continued its development during May and June…

Fighting Against Theft

As reported in Financial Times, Target has informed its investors that shrink – the loss of inventory as a result of shoplifting, employee theft, and organized retail crime – will reduce the retailer’s profits this year by approximately $500m more than it did in 2022. Retail shrink appears to be on the rise, with New York mayor, Eric Adams, claiming that the city experienced a 45% increase in retail theft complaints last year compared to 2021.

The article calls for communities and wider law enforcement to step up in the fight against theft to take back control. Of course, retailers cannot eliminate shrink alone, but they can take steps to help their odds. RFID technology, for example, can track products at item-level and play a significant role in reducing shrink at checkout.

Many view self-checkout as a less secure point of sale (POS) option, which can contribute to increased theft without in-store associates on hand to personally complete transactions. However, Teamwork’s RFID-Powered Self-Checkout solution automatically scans all items in a shopper’s basket or cart within seconds, and is capable of triggering alarms if items are not paid for. Ultimately, retailers experience fewer losses as a result, and checkout security can be significantly enhanced.

US Retail Sales Increase in May

Theft concerns haven’t kicked off our review of the retail industry in the brightest light. After all, it’s not all doom and gloom. In fact, while in March the US may have seen retail sales drop, this time around we’ve noticed that the numbers have started building up again.

According to Bloomberg, US sales unexpectedly climbed by 0.3% in May, proving consumer resilience despite continued economic challenges.

Reuters goes on to explain that while the cost of living crisis has resulted in shoppers becoming more selective and sensitive to prices, strong wage gains from the labor market have held up spending.

While the market is rebounding, retailers must continue to remain in-tune with customer demands. With the right clienteling and CRM solutions, retailers can create personalized in-store experiences that provide value to customers, recommending products and highlighting promotions that best suit them. On top of this, a personalized approach helps in-store associates to deliver high-quality customer service that helps set retailers apart in a highly competitive environment.

Physical Stores Continue Their Comeback

With US sales rebounding, much of the success can be attributed to the boom of physical stores. That is, at least, according to members of the KPMG/Ipsos Retail Think Tank (RTT), who have been discussing the latest developments within retail.

According to the RTT, in-store sales are making a strong comeback despite brick-and-mortar retail being written off by many over the past few years. The reason for the resurgence is believed to be due to the ongoing cost of living crisis, where in-store shoppers are better able to track their spend. The RTT also cites a post-COVID appetite for real-life experiences as a contributing factor.

With brick-and-mortar shopping on the rise, it is important that retailers can leverage increased footfall by providing seamless in-store experiences that deliver on the current desire for experiential retail. While RFID-powered self-checkout can help customers complete their own transactions in seconds, Mobile POS allows retailers to deliver a personalized touch to their sales, while being able to complete transactions from anywhere in-store.

With built-in CRM, our Mobile POS solution allows retailers to create a single source of information around every individual customer, allowing them to visualize customer purchasing history, buying habits, and shopping frequency across sales channels and make relevant recommendations. Not only does the solution help to minimize a customer’s time spent waiting around in-store, but it adds the personal touch that consumers crave.

Building Towards a Summer Spree

As we make our way to the summer months, consumer appetite is clearly on the rise, with demand for in-store experiences leading the charge for customer expectations. The next few months could be crucial for retailers looking to capitalize on vacation purchases and refreshed summer wardrobes, and staying on top of their competition. A personalized approach will be the key to success.

Find out more about how Teamwork Commerce’s solutions can help your retail business deliver the ultimate customer experience. Get in touch today!