Last week was relatively slow in terms of retail news, with limited economic updates and research trends. However, the news that did come out required nuance as the same piece of information could be spun in different directions. The US Bureau of Economic Activity reported an upward revision of real GDP for Q4, with increases in consumer spending contributing to the growth. Consumer confidence surveys from The Conference Board and the University of Michigan showed mixed results, with concerns about the future and rising anxiety overshadowing economic conditions.
In terms of retail tech and research data, ThredUp’s annual report on secondhand apparel revealed that the resale market grew faster than traditional retail in 2023, reflecting consumer preferences for value and sustainability. More brands are offering resale options, with expectations that it will generate a significant portion of revenue in the future. Retailers will need to adapt to consumer expectations for omnichannel capabilities as the online resale market continues to grow.
A study on UK consumers found that many have been using savings accumulated during lockdowns to offset cost of living increases, with price sensitivity on the rise. The difference between UK and US consumers lies in the perception of being “tapped out,” with UK consumers feeling financially strained. In the AI and retail space, concerns about the sustainability of creating large language models have arisen due to their high energy consumption. Questions about the future value and efficacy of AI models continue to be debated, with retail implications in areas such as chatbots and advertising.
Retail winners and losers included Wendy’s partnership with DoorDash and Wing Drones for drone deliveries in the US, following a successful pilot in Australia. Amazon’s anti-fraud efforts have cost over $1.2B, with investments in technology and partnerships to combat counterfeit products and seller fraud. Overall, the complexity of interpreting economic data and the uncertainty surrounding the future of AI in retail highlight the challenges and opportunities facing the industry. As technology continues to advance, retailers will need to adapt to changing consumer behaviors and expectations to stay competitive in the market.
