Shoppers continue choosing online or in-store for the same reasons – availability, selection, and price. They prefer retailers with easy returns (80%), allow them to get in and out of stores quickly (76%), and offer order delivery to home (75%). They are also taking advantage of alternative pickup and delivery options with 34% of shoppers opting to buy online, pick up in store or buy in store and ship to home and with 90% saying they will continue to use these services. Fun Thanksgiving Facts
IMF now forecasts global GDP growth to slow dramatically from the 6% in 2021 to 3.2% in 2022 and an even lower 2.7% in 2023. Global inflation is forecast to rise from 4.7% in 2021 to 8.8% in 2022, 6.5% in 2023 and 4.1% in 2024. The 10 highest global risk scenarios published by the Economist Intelligence Unit. 40% of consumers believing inflation will impact their holiday shopping decisions. 43% of retailers think consumers are buying less overall, yet only 29% of consumers admit that this is the case.
In terms of spend for this holiday season, 37% report their financial outlook as worse when compared to last year. 74% say they will spend more or the same on the holidays than last year. 32% plan to buy resale items as a way to offset rising prices. 34% plan to use social media as part of their holiday journey (vs. 28% in 2021). Online Holiday Sales to Grow 6.1% in 2022. Five Terrifying Retail Trends.
Primary reasons consumers shop in-store are: they need the items now (75%) or they want to touch and feel or try on items before purchasing (57%). Across all segments, more than 25% of customers report decreased trust in retailers based on inventory levels. Customers report they will give up on your store after 2.5-3 out-of-stock experiences. In just 48 years, the world population has doubled in size, jumping from four to eight billion. The exact date that we will hit 8 billion is November 15.
2022 LPRC IMPACT was a great success! In this week’s episode, our co-hosts discuss the IMPACT Conference and the great preparations taken, the record setting conference attendance, and a look at the LPRC moving forward into 2023!
USA retail holiday sales will increase 7.5% this year, above the 10-year avg. of 5%. WIth inflation, real growth will range from 1% to 3% below the 10-year avg. 92% of retailers expect a recession in the near future. 81% expect it to be one year or less. To prepare, 52% plan to seek cuts indirect expenses and 42% would invest more in loyalty, reduce direct expenses, and inventory. 56% expect to be stuck with excess inventory after the holidays. 60% of digital orders are now influenced by physical stores.
Similar to the last five years, average shrink rate in 2021 was 1.4%. When taken as a percentage of total retail sales in 2021, that shrink represents $94.5 billion in losses, up from $90.8 billion in 2020. Highest LP tech investments in 2022: RFID systems; AI-based point-of-sale (POS)/self-checkout (SCO) video analytics; license plate recognition; and/or self-service locking cases or lockers. Nearly 90% of respondents reported that COVID-19 had resulted in an increase in the risk of violence.
Since D&D started tracking the data in 2016, retail fatalities have been up every single year. In total, retail fatalities are up 63% since 2016. • Comparing quarter to quarter to the previous year, for Q1/2022 vs Q1/2021, retail fatalities are up 9% and violent incidents are up 16%. This holiday season, U.S. retail sales excluding automotive are expected to increase 7.1% year over year, according to the Mastercard SpendingPulse™ annual holiday forecast. Key trends to watch this year include.
LPRC Team is on the road – Listen to see where! In this week’s episode, our co-hosts discuss the newest clinical trial data for vaccines, Tik Tok potentially got hacked, an examination of global inflation and the impact on everyday households, a look at the Global Economic and Retail Headwinds, the latest cyber security trends in the industry, and a look at everything 2022 LPRC IMPACT!
Update on LPRC Impact Conference. A preview of upcoming "The Inflationary, Recession-Risky, and Disruptive Future of Retail" webinar and a continued look at Eastern Europe generated cyber attacks
Mid-year Checkup: What Retail Execs are Saying about inflation and inventory and more. E-commerce Revenue to Shrink for the First Time. UK Oxford Street Footfall jumps 24% thanks to international visitors.
UK Retail Leaders Call on Police to Prioritize Crime. UK retailers have spent £715m ($835 million) on crime prevention in 2020/21. Retail sales, which does not include auto sellers, gas station and restaurants, were up 7% in the first six months of the year, according to NRF. Where Americans Plan to Cut Back in the Face of Inflation. Amazon Leads $200 Billion Cloud Computing Market.
USA has 27 million known shoplifters, but only 3% are professionals. Only one out of every 100 shoplifters are arrested, and about 48% of shoplifters were repeat offenders. The top 3 items that retail thieves craved most are designer clothes (34%), laundry detergent (21%), and razors (20%). Inflation and hard economic times increase crime in general and this includes retail theft. For every $330 worth of products stolen, a retailer needs to sell an incremental $300,000 worth to break even.
Men (73%) are more likely than women (62%) to visit metaverse destinations. Women more likely to use metaverse as a virtual showroom, browsing products digitally before returning to physical world to make purchases (25% women vs. 18% for men). More than half (53%) of consumers say their financial condition is worse in 2022 than it was in 2021. Nearly a third believe it will deteriorate over the next 12 months. Consumers think they’ll be living with higher prices for 600+ more days.
USA retail crime results in $125.7 billion in lost economic activity and 658,375 fewer jobs, paying almost $39.3 billion in wages and benefits to workers. ORC costs retailers an average of $720,000 for every $1 billion in sales as of 2020, up from $450,000 five years earlier. 86% said that an ORC criminal has verbally threatened an associate with bodily harm. 2021 was another violent retail year in USA retail with incidents up 9% and fatalities up 14% from the previous year.