Sourabh Sharma
March 27, 2024
What are some of the newest trends we spotted in March?
Store closures, check.
New subscriptions and payment methods, ok.
AI, smartrings, tech and more, got it.
Find out in our recap as we gear up towards Re:Tech Disrupt, the biggest online retail technology and innovation festival on April 16 2024. Register here.
Macy’s and Dollar Tree, two iconic retail giants, are facing significant closures as they navigate the changing landscape of consumer behavior. Macy’s recent announcement of closing 150 underperforming stores reflects a strategic shift towards digital transformation and a focus on luxury brands like Bloomingdale’s and Blue Mercury. Meanwhile, Dollar Tree plans to close nearly 1,000 Family Dollar stores due to significant underperformance, indicating a shift in consumer preferences towards smaller, boutique, and niche retail stores or engaging forms of online shopping. These closures raise questions about the future of department stores and multi-branded retailers, prompting discussions on the viability of diversification strategies and the emergence of new trends in retail, especially with Gen Z and Gen Alpha.
Retail trends are evolving rapidly from payments to checkout in particular. Over 50% of customers are favoring buy now pay later (BNPL) schemes and digital wallets, prompting retailers to adapt their checkout processes. While offering multiple payment methods increases conversion rates, it also raises security concerns for users who prefer traditional options like PayPal. Additionally, while payment plans attract new customers with zero-interest offers, they may deter loyal shoppers seeking a streamlined checkout process.
Meanwhile, retailers like Target are exploring new revenue streams by launching paid membership and subscription programs, such as Target Circle 360, to compete with giants like Amazon Prime and Walmart+. This shift reflects the need for retailers to stay competitive in an increasingly subscription-focused market. Furthermore, retailers are reevaluating their checkout processes, with Target and Dollar Stores implementing a new policy limiting self-checkout to 10 items or less nationwide to enhance the guest experience and mitigate losses. This reflects a broader trend of retailers optimizing their operations post-pandemic, aligning with changing consumer preferences and ensuring a seamless shopping experience.
Closer to the homefront, are companies like Jifiti, a leading fintech company that powers white-labeled embedded lending solutions for banks, lenders and merchants worldwide, or ChargeFlow, the world’s first automated chargeback management solution specifically designed for eCommerce merchants. Similarly, ChargeAfter provides personalized embedded financing choices in-store or online, and Splitit powers the next generation of BNPL through a merchant-branded Installments-as-a-Service platform.
Join our roundtable discussion to learn about the latest in the space on April 16 2024. Register here for the roundtable on Revolutionizing Payments and hear how innovative payment solutions such as BNPL, crypto, facial recognition and biometric payments are changing customer experiences and increasing revenue.
The European Parliament’s recent approval of the Artificial Intelligence Act has sparked discussions about the regulation of AI, with the aim of balancing innovation with ethical considerations and safeguarding citizens’ rights. This act, set to enter into force within 24 to 36 months, aims to reduce risks associated with AI applications, combat discrimination, and enhance transparency, particularly in high-risk AI scenarios. Meanwhile, retailers are increasingly embracing AI technology, with notable use cases including store analytics, personalized customer recommendations, adaptive advertising, inventory management, and conversational AI. Reports from NVIDIA highlight the positive impact of AI adoption in retail, with significant increases in revenue and decreases in operating costs reported by many retailers.
Samsung’s Galaxy Ring debut at Mobile World Congress (MWC2024) and Lenovo’s unveiling of the ThinkBook Transparent Display Laptop represent significant advancements in wearable and display tech. The Galaxy Ring received positive feedback, signaling validation for the emerging smart ring category, while Lenovo’s transparent laptop introduces a futuristic concept with potential applications in various industries. Samsung’s focus on health features and differentiation from smartwatches highlights its aim to complement existing wearable tech. Meanwhile, Lenovo’s laptop offers potential in digital art and architecture with augmented reality (AR) and AI object recognition. Both innovations highlight the evolving landscape of technology, sparking discussions about their impact on retail and consumer experiences.
Retail trends are shifting towards encouraging reduced overconsumption and exploring unconventional markets. Social media platforms like TikTok are sparking movements like the “Rule of 5” and deinfluencing, pushing back against hyper-consumerism. Brands are urged to transform their business models, allocate revenue to alternative streams like fashion experiences, and promote sustainable lifestyles as aspirational. As an example of adapting with the times is a brand like Abercrombie & Fitch’s with an unexpected entry into the bridal market with its Wedding Shop collection. The collection emphasizes rising trends towards casual and budget-friendly wedding options, making fashion a bit more sustainable and less wasteful over time. This move reflects evolving consumer preferences and signals an adaptation to new market demands.
Join us in learning about the hottest new trends in retail and how they will impact the intersection of retail and technology at Re:Tech Disrupt, the biggest online retail technology and innovation festival on April 16 2024. Register here.
