In 2024, the retail industry is undergoing a transformation that extends beyond just changing how we shop, what we buy, and where we make our purchases (ever thought about enjoying a mimosa while shopping?). The innovative retail trends outlined below are shaping every aspect of this evolution.
It’s intriguing to note that the boutique on your local high street, the shoppable posts gracing your Instagram feed, and the marketing emails directing you to online stores may all emanate from the same retailer. This retailer might have undergone significant changes compared to the previous year.
To assist retailers in recognizing and capitalizing on these strengths and strategies, Square collaborated with Wakefield Research to survey 2,000 consumers and 500 retail owners and managers regarding the retail industry trends that are shaping the landscape in 2024. The insights we gathered were truly illuminating, shedding light on the who, what, where, and why of our shopping experiences, all undergoing a profound transformation. There’s even an opportunity for local retailers to carve a niche for themselves and outperform their competitors through social and mobile commerce, alongside the use of automation tools tools.
1. Retailers are expanding where they sell
As the landscape of social media undergoes continuous evolution, so do the opportunities for the retail industry. According to the findings from our survey, a notable 81% of retailers have plans to expand the array of digital channels through which they sell over the coming 12 months. This expansion reflects a shared understanding among businesses that there exists a growing variety of avenues for reaching and engaging with customers, prompting their quest for a unified approach.
While online shopping remains an essential and indispensable method for product sales, with businesses indicating that 43% of their revenue is derived from online sales, retailers may also find value in exploring alternative avenues like virtual reality. Interestingly, 22% of consumers express interest in trying virtual reality experiences that enable them to virtually interact with products in a digital store.
Roshan Jhunja, the General Manager of Square for Retail, notes, “Amidst economic uncertainty and evolving consumer preferences, the prevailing macroeconomic landscape serves as a stark reminder to retailers that merely maintaining a presence in a single location is insufficient.” Beyond physical stores and online platforms, brands must be visible and audible in spaces where consumers seek inspiration and make their purchases.
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2. Retailers are planning for economic ambiguous.
Retail customers generally favor automation, with a majority of them expressing a preference for it. Our research reveals that 73% of consumers actively prefer local retailers to incorporate automation rather than relying solely on human staff in at least one aspect of the shopping experience.
Automation, by reducing the amount of time your staff dedicates to hands-on tasks, affords your customers the opportunity to tailor their experiences according to their preferences and at their own pace. For example, automating tasks like inventory management eliminates the need for customers to inquire about stock availability, saving them the inconvenience of seeking assistance and also streamlining your staff’s workload.
In line with this, our 2023 Future of Retail report highlights that 44% of consumers express a desire for automated tools to access product information and inventory details.
To accommodate these changing customer expectations, retailers might consider investing in automated software solutions or upgrading their existing systems. Square simplifies inventory management with tools that empower you to oversee your stock levels from any computer and receive alerts when items are running low.
3. Automation can improve customer experience
Retail customers generally favor automation, with a majority of them expressing a preference for it. Our research reveals that 73% of consumers actively prefer local retailers to incorporate automation rather than relying solely on human staff in at least one aspect of the shopping experience.
Automation, by reducing the amount of time your staff dedicates to hands-on tasks, affords your customers the opportunity to tailor their experiences according to their preferences and at their own pace. For example, automating tasks like inventory management eliminates the need for customers to inquire about stock availability, saving them the inconvenience of seeking assistance and also streamlining your staff’s workload.
In line with this, our 2024 Future of Retail report highlights that 44% of consumers express a desire for automated tools to access product information and inventory details.
To accommodate these changing customer expectations, retailers might consider investing in automated software solutions or upgrading their existing systems. Square simplifies inventory management with tools that empower you to oversee your stock levels from any computer and receive alerts when items are running low.
4. Customers want to engage with brands.
Balancing communication with customers to keep them engaged is often a nuanced challenge for businesses. Determining the right timing for email outreach or promoting a sale via text message, or perhaps using both, largely depends on your specific audience. Yet, grasping where to commence can be a pivotal factor.
The encouraging news is that customers genuinely appreciate hearing from the businesses they patronize, with a substantial 86% expressing their desire for such communication. Email stands out as the top choice, preferred by 60% of consumers. Communicating through Facebook ranks second, chosen by 32%, significantly ahead of other social media platforms like Instagram and TikTok, which appeal to 17% and 10% of consumers, respectively.
Regarding newer methods like text message marketing, 31% of consumers consider it their preferred mode of communication.
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5. Booming digital transformation trends in retail industry.
Retailers are actively exploring various approaches to adapt to the changing digital transformation trends in retail industry and demands of customers, whether it’s selling on Instagram or launching online stores. This dynamic omnichannel environment is particularly exciting, as our survey reveals that a remarkable 91% of retailers now engage in social media sales.
E-commerce tools enable social and mobile selling, whether through fully shoppable stores or flash sales, facilitating retailers in reaching a broader customer base, especially when people are increasingly connected to their mobile devices. This strategy is proving successful, as evidenced by 79% of consumers making purchases directly from their mobile devices.
If you’re considering venturing into social selling, explore how Square can expedite your entry using the tools you already depend on.
Ara Kharazian, Data Lead for Square Comms, notes, “On the Square platform, mobile payments have surged by 117% this year, partially driven by the expansion of online and social media channels. As customers continue to anticipate the presence of their favorite businesses on social media, it’s incumbent upon these businesses to meet them where they are.”
To uncover more trends and insights that retailers are capitalizing on to foster business growth in 2024, read on.
