A year of opportunity amidst challenges
While the shadow of past disruptions may linger, a surprising wave of optimism is sweeping the retail industry as we enter 2024. This sentiment, despite ongoing economic uncertainties, stems from a newfound belief in the transformative power of technology, particularly the emergence of generative AI. Retailers envision AI streamlining operations, boosting productivity, and creating more captivating customer experiences – all contributing to both financial growth and lasting success.
However, it's not all sunshine and roses. Inflation remains a pressing concern, squeezing profit margins and demanding strategic pricing adjustments. Labor shortages and supply chain disruptions continue to test adaptability, requiring innovative solutions to maintain smooth operations. These challenges are compounded by geopolitical tensions, adding further complexities to the global retail landscape.
Despite these hurdles, there's a sense of opportunity brewing. In our Global Retail Outlook 2024 report, we asked 200 retail leaders around the globe to provide their expectations for revenue and operating margin for the industry as a whole. In this report, we assess the overall health of the retail sector and retailers who can effectively navigate the changing market terrain are poised for significant growth.
What are the challenges and opportunities that lie ahead of the retailers?
We present a deep dive into three systemic challenges and three opportunities that will define the retail industry not only in the year ahead, but into the next decade and beyond.
Challenges:
- Climate change and the credibility of retailers’ commitment towards the green transition
- A shortage of workers
- Supply chains under pressure
Opportunities:
- Health and wellness on the rise
- Technology supports a shift from mass to micro
- Unlocking the power of Artificial Intelligence
Download our full Global Retail Outlook 2024 to learn more about the biggest focus areas for retailers in the year ahead.
Deep dive into the client interviews from the report here:
About the survey:
The Deloitte Global Retail Outlook 2024 is based on research carried out by independent market research agency Coleman-Parkes on Deloitte’s behalf. The survey was conducted by telephone and online with 200 retail professionals comprised of C-Suite and senior decision makers with direct responsibility for strategic initiatives within their organization. The survey was conducted between 10th November and 7th December 2023.
