Personalization Power: $1.14 Trillion in Online Sales Predicted for 2023

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According to a report by FTI Consulting, U.S. online retail sales are projected to reach $1.14 trillion in 2023, marking a 10% year-over-year growth. The report highlights that nearly half of the retail sales growth this year will come from e-commerce. While e-commerce growth is expected to slow in the coming years, it will still outpace store-based sales growth. The survey conducted as part of the report indicates that personalization is valued by consumers, with a majority expressing interest in receiving tailored product offers and ads. However, preferences for personalization vary across different generations, and concerns about recommendations based on race and gender were also identified. Businesses are advised to address these concerns and develop strategies to gain consumer confidence in sharing personal data for effective AI-driven personalization.

What is new in Retail?

DTC brands can set themselves apart by offering high-value content tailored to their customer’s preferences. By understanding their audience, measuring ROI, and avoiding common mistakes, brands can effectively leverage content to differentiate themselves, engage customers, and drive business growth.

Back-to-school spending to tumble 10%: Deloitte
According to a Deloitte survey, families will spend an average of $597 per child, a 10% decrease, on back-to-school items this year, with overall spending reaching $31.2 billion. Parents are more cautious due to lower disposable income, favoring mass merchants, online shopping, off-price retailers, and dollar stores for discounts, while spending on traditional school supplies has increased but declined for apparel and technology.

Reversing the Retail Worker Drop-Off
The retail industry heavily relies on frontline workers, who face numerous challenges and responsibilities, resulting in high-stress levels and reduced job satisfaction. Retailers can improve the situation by implementing automation and providing smart data capture technology to streamline operations, increase productivity, and allow employees to focus on customer experience, ultimately leading to improved retention and service quality.

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daVinci Assortment Planning

daVinci’s Assortment Planning solution transforms the way retailers manage their buying process, improving efficiencies, so merchants get back time to be merchants.

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