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Commerce does not plan any major personnel moves. Stagnation on the labor market
Moderate enthusiasm
Retail sector experts are divided in their forecasts regarding the situation in the industry for the upcoming second half of 2024. Over 40 percent respondents participating in the Future Mind study are optimistic, believing that the situation will improve, while 30 percent expects conditions to worsen.
A similar division can be observed in technology investment plans. More than four out of ten companies assume that investments in the expansion of IT infrastructure will remain at the same level. Every fourth person plans to spend additional money on it in the near future, and 18 percent intends to limit it.
Cost optimization is the key to success
In the face of significant socio-economic uncertainty and high inflation rates, cost optimization is currently a priority for retailers. It allows not only to maintain profitability, but also to allocate funds for development and diversify sources of income.
– Companies that are in good financial condition can use the current conditions to obtain new sources of revenue and increase their competitive advantage. However, for those that experience declines in sales or financial difficulties, negotiations with suppliers, optimization of inventory management and investments in technologies that improve operational efficiency may be crucial – comments Izabela Franke, Head of Advisory at Future Mind.
What to invest in?
Respondents indicated that their organizations plan the largest investments in the areas of data management, analytics and AI – as many as 42 percent. retailers intend to increase expenditure in these areas. The remaining pillars of the business, such as e-commerce platforms, mobile applications, cloud technologies and sustainable development, are to remain at the current level of investment.
Experts participating in the Future Mind study see the greatest opportunities for improving the industry's situation in the use of AI to personalize products, services and marketing communications – 52 percent. respondents indicated this direction as key. At the same time, over 40% of respondents want to add a transaction function to their mobile application, and almost one third plan to implement a paid subscription offering additional functions and benefits.
– The retail industry must find a balance between cost optimization and investments in innovative technological solutions. Leveraging consumer data and digital customer touchpoints, such as Retail Media, can become a key element of your growth strategy. An example is Walmart, which achieved $3.4 billion in advertising revenue in 2023 and plans to double this result by 2025, which will translate into approximately 10%. the company's total revenue – comments Emil Waszkowski, Head of Strategy at Future Mind.
Future Mind, part of the Solita group, is a consulting and technology company that has been creating digital products for 15 years. The team consists of over 200 specialists, including business and technology advisors, analysts, programmers, and UX and UI designers. In its projects, the company combines the potential of mobile and backend technologies with a strong base of cloud, data and AI solutions.
