#24 - It's time to reflect about Retail & Ecommerce!
9% growth in European Ecommerce. Walmart’s CFO talks inflation. Unionisation needed in Ecommerce? Temu's Expensive Growth. Retail & Ecommerce Raconteur Report. Interview by the Czech Retail News.
Hello everyone 👋
Christmas Countdown: 10 days! Do you have everything prepared? …me neither. There’s not time for gift shopping, when now it’s time to do some serious end-of-the-year reflection about the state of Ecommerce and Retail in the world. We may be at the end of the year, but most of us are already looking forward and planning to the next one.
As you should know by now, it’s not wise neither possible to plan and strategise without looking back to what we’ve achieved in the past. Today’s article is a mix of past analysis, present observations and future projections. Hope it helps you 🙏
5 - 9% growth in European Ecommerce
Forrester's recent report predicts a surge in online retail spending across major European countries. Highlighting Germany, the UK, France, Italy, and Spain, which account for 70% of Western Europe's GDP, the forecast suggests a 9.2% annual growth rate. Despite setbacks due to the pandemic and economic challenges, the report anticipates a return to pre-pandemic levels from 2024 onwards. It projects combined online retail sales to rise from 372 billion euros in 2023 to 579 billion euros in 2028. The forecast aligns with expectations of a 9% growth in European ecommerce by 2027. This outlook reflects an evolving retail landscape, emphasizing both online and offline dynamics until 2028.
4 - Walmart’s CFO talks inflation
At the Morgan Stanley Global Consumer and Retail Conference, Walmart's CFO, John David Rainey, discussed consumers' resilience amid 2023's high prices, noting a shift towards prioritizing food spending over general merchandise. Despite a slight deviation in late October, Walmart anticipates adapting without drastic strategy changes for 2024. Rainey highlighted their focus on boosting higher-profit general merchandise sales while investing in automation for improved supply chains. Walmart aims for sustainable Ecommerce profitability, leveraging its extensive store network for cost-effective operations and prioritising convenience and value in the digital space.
3 - Unionisation needed in Ecommerce?
Sociologist Steve Viscelli highlighted the gruelling physical demands faced by delivery workers during the holiday rush, emphasizing the strain of carrying hundreds of packages daily. He outlined the intricate journey of a package from factory to doorstep, noting the complexity involving multiple transportation modes and workers. The growth of Ecommerce intensified workloads, but Viscelli expressed concerns about declining job quality due to algorithmic management. He stressed the importance of unionization and policies for fair compensation and better working conditions. Viscelli remained optimistic about policy changes shaping a safer and more efficient transportation system, while emphasising the crucial role of policy decisions over individual consumer actions in this landscape. Lastly, he acknowledged Ecommerce's potential environmental benefits if coupled with fair job opportunities in delivery services.
2 - Temu's Expensive Growth
The Chinese e-commerce platform Temu has rapidly secured a 17% market share in U.S. discount stores, challenging Dollar General and others with its affordable $4 home decor and $10 shirts. Using social media influencers, Temu attracts customers seeking better deals. Despite operational losses, it's expected to hit $16 billion in revenue this year. However, sustaining such growth and losses remains uncertain. Temu's disruptive approach could reshape retail, but questions linger about its financial sustainability and potential changes in consumer behavior.
1 - Retail & Ecommerce Raconteur Report
In 2024, the Retail and Ecommerce landscape will be defined by significant trends aiming to meet evolving consumer expectations. Modern consumers seek seamless digital integration in their buying experiences, demanding exceptional customer service, personalized shopping suggestions, and competitive pricing. Loyalty remains elusive but pivotal. Retailers are set to intensify efforts in enhancing in-store experiences and expanding Ecommerce initiatives, adapting to changing market dynamics. Additionally, the influence of AI in retail is projected to grow substantially, revolutionising customer journeys and fostering deeper understanding of consumer behaviour.
Brands and retailers, therefore, face the challenge of winning and retaining customers amidst this shifting paradigm by embracing innovation, enhancing customer experiences, and exploring revenue-boosting avenues like retail media networks. Adjusting strategies to align with these trends will be key to thriving in the competitive retail landscape of 2024.
Retail News Magazine Interview
In an interview with the Czech Retail News, I highlighted Shopify's significance for traditional retailers venturing into Ecommerce. The pandemic accelerated a foreseeable trend, compressing years of expected online retail growth into a shorter timeframe. For these retailers transitioning online, focusing on customer care, refining processes, and addressing technological debt are crucial. Shopify's flexibility, innovation, and scalability make it a preferred choice, offering an extensive ecosystem and API-first platform. Shopify's continuous evolution position it as a strong choice for retailers exploring Ecommerce.
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