Future Retail Insights: Store Experience
The future of retail must reconcile today's emotional realities.
Today's retail experience evokes emotions that both consumers and brands must navigate.
What are those experiences, and how do they drive store visits and purchase intent?
We'll get to that soon, but first...If we're talking Future Retail Insights, we would be remiss to ignore the current state of retail in the U.S. and the signs leading to a potential slowdown. If we look at U.S. Census data:
U.S. adults' expectations for the economy have dropped significantly - 64% of Americans are very concerned about inflation.
On June 22, 2022, economic sentiment saw the largest two-week decline in the past year (down to 29.6), thus, we are seeing a corresponding dip in major and planned purchases across certain categories.
This all leads to the slowing growth for retail that we are seeing, now -0.4% as of May 2022.
The data is putting a different lens on key moments and seasonality, like Back to School and Holiday, and has retailers considering how to engage shoppers in the "new" right ways. Despite economic concerns, distraction from the charged political environment, and continued supply chain issues, consumers are resilient - and they look to brands for assurance and for experiences that keep them connected. Two years past COVID, and we see an increasing appetite to return to stores - retail foot traffic in the U.S. was up 17% YoY in March.
In the latest from Sam Chernoff, VP of our Insights & Connections team, our Future Retail Insights explores how the future of physical retail must reconcile today's emotional realities.