No images? Click here February 2024 | Newsletter No. 9 | #retailrundownBaker Retail Rundownby Leo Contreras & Sophie Shao Stay in the know with our rundown of the previous month's top retail industry news, curated by our talented team of Penn student analysts. Leading retail executives reveal a consensus around several key themes shaping the future of the retail industry. They emphasize the integration of digital and physical retail experiences, the transformative potential of artificial intelligence (AI) and automation, and the enduring importance of physical stores despite the growth of online shopping. Executives envision a space in retail where technology enhances customer experiences, refines personalization, and streamlines operations, yet they assert the continued relevance of brick-and-mortar stores in fulfilling consumer needs. The digital helpers, powered by bitHuman, an interactive AI platform, will be providing an advanced look at retail’s future, a future where AI-enabled tech increasingly will replace jobs currently performed by humans. The top five current uses of AI, according to the retailers surveyed, are personalized customer recommendations; store analytics and insights; adaptive advertising, promotions and pricing; stockout and inventory management; and conversational AI. One major growth area for AI in 2024 is in helping retailers get the kind of information and insights about shopper behavior in physical stores that they can access from online sales. The brand, named Cécred, will officially launch on Feb. 20 after the singer initially teased the possibility of a new brand in May. Her first perfume was introduced in 2010 and to date she has 15 different fragrances. According to a JLL report released last summer, 53% of all celebrity retail brands fall within the beauty category. Rihanna launched the Fenty Beauty brand, Jessica Alba built the Honest Co. brand and Selena Gomez created the Rare Beauty brand. Chanel's efforts to maintain its brand exclusivity and product distribution have been challenged by the rise of the online resale market. Despite luxury brands exploring the resale space to attract entry-level customers, Chanel has taken a more defensive stance to protect its brand against counterfeiting and image dilution associated with secondary markets. These efforts might shape the future of luxury resale, balancing brand integrity and meeting the increasing demand for sustainable and accessible luxury products. American consumer spending experienced an unexpected decline in January, with retail sales dropping by 0.8% from December, surpassing the anticipated 0.10% drop. The decrease suggests that consumers, influenced by higher interest rates and financial challenges, are pulling back from post-holiday spending indicating a shift towards more price-conscious behavior. This trend, coupled with cooling consumer inflation, could impact the Federal Reserve's decisions on interest rates, potentially providing relief to borrowers. |