2023 was a year of unexpected twists and turns for the retail industry. From marketing blunders to economic surprises, the year offered a wealth of lessons and insights.
Here are seven big stories that shaped the retail landscape in 2023.
- Issue: Bud Light's marketing team faced backlash after sending a custom can to a trans influencer, becoming a target for right-wing outrage. Afterward, A/B ghosted the influencer, enraging the left wing.
- Impact: This mess highlighted mass market brands' challenges in understanding and engaging with diverse audiences.
- Lesson: Brands must be more sensitive and informed about their marketing strategies to avoid alienating audience segments, and if they choose a stance, they need to stand behind it. The aftermath will be studied for decades.
- Expectation vs. Reality: Despite years of recession predictions by analysts and CEOs, the economy experienced a soft landing post-inflation.
- Unemployment Rate: Remained low at 3.7%, contradicting the gloomy forecasts.
- Retail Theft Misreporting: Early reports that 50% of retail theft being linked to organized crime were later retracted, casting doubt on the NRF and the severity of the issue.
- Event: The Pop Tarts College Bowl mascot video went viral, capturing public attention because the winners actually ate the mascot.
- Strategy: A clever integration of a familiar brand into a popular event, creating a positive and memorable association.
- Shift in Focus: The hype around the Metaverse was replaced by the emergence of ChatGPT.
- Impact: Generative AI quickly became a tool billions use, showcasing its practical applications and potential over the buzz of the Metaverse.
- Barbie's Movie Success: The film appealed to both fans and critics, revitalizing a familiar yet stagnant brand.
- Taylor Swift's Dominance: Her clear understanding of her audience and consistent delivery earned her Time’s Person of the Year, exemplifying effective personal branding that worked on many levels. Several universities now offer courses to study her prose and business acumen.
- Trend: Retailers found staffing stores easier but often opted for fewer staff, leaving longer lines and messier stores.
- Observation: Neil Saunders' in-the-field reports suggested that 'less is less,' indicating that reduced staffing might not be the optimal strategy. Retailers need to get back to staffing for traffic, not accepting one-person coverage if they want to grow sales and reduce both turnover and theft.
- Ongoing Issue: The balance between traditional and self-checkout systems remains contentious.
- Personal Experience: A visit to a Lowe’s with only self-checkout options left one person with the least inclination to help in charge of four stations where at least one at a time had problems. I won't be back.
- Broader Perspective: An article in The Atlantic echoes these sentiments, questioning the efficiency and customer satisfaction associated with self-checkouts.
In Sum
The retail landscape in 2023 was dynamic; according to Fast Company, retail sales hit $6.183 trillion, up 11% from the previous year.
In 2024, smart retailers can build on that excitement with smart marketing strategies and technological advancements to navigate the many changes with the always-connected consumer.