One of the brighter spots for the American economy is the continuation of strong consumer demand. Consumers drove retail spending to staggering heights during the pandemic, and while they have now tamed those habits somewhat, the average American is still spending despite higher prices and those pesky high interest rates that keep gnawing at our wallets.
Retail sales during the recent holiday season were surprisingly brisk—up just over 3% from 2022. However, brick-and-mortar sales were down 1%–4% depending on the category, but most retailers made up that difference with online sales that increased about 4%. Retailers spent much of the year focused on reducing their pandemic-bloated inventories.
Moving into spring, we find consumers are still spending but are being a bit more particular about what they buy. They are visiting stores just as often but not walking away with quite as many goods per visit. Customers are also looking for value and are waiting for the items they seek to go on sale. With summer travel season approaching, retailers are cautiously optimistic that consumers will still spring for that new swimsuit and other travel essentials.
The dreaded recession we all feared never came, and there is still hope that the Federal Reserve will start sending interest rates on the downward path, but probably later than investors are hoping to see. So, as we present this year’s retail issue, let’s just say it could be a lot worse out there.
As in past years, this retail-focused digital issue includes some of the best retail-related stories published in DC Velocity, including articles on optimizing reverse logistics, high-tech tools for taming inventory, and tips for reducing packaging waste.
We also are presenting new content from Supply Chain Xchange, including research from MIT on how omnichannel fulfillment is evolving. We also examine five ways to tackle return fraud, a troubling thorn among retailers. Another article looks at best practices to assure that your supply chains are free from any instances of forced labor. And we examine how the simple bar code is getting a facelift and how retailers can take advantage of it.
As always, we hope you enjoy this edition as much as our contributors and staff are proud to bring it to you.
