Retailing executives, as well as some of the companies that supply their businesses, say they are nearly unanimous in expecting a good year for their companies this year with few forecasting a recession.
New research from investment banker Carl Marks Advisors found that nearly 90% of respondents said they expect their sales to increase or at least remain the same this year.
"With inflation abating and interest rates leveling off, 2024 presents an exciting opportunity for retailers with the courage to embrace out-of-the-box thinking and innovation," said Howard Meitiner, managing director at Carl Marks. "Retailers who are prepared to re-evaluate their business model and take the necessary steps to invest in integrated omnichannel experiences should be optimistic about the coming year.”
The firm said that following record lows in unemployment and a strong holiday season for retailers, “now is not the time to be pessimistic. Companies willing to risk trying something different – whether a new strategic partnership or sourcing on-shore – will be rewarded in 2024."
Those new initiatives will be the difference in making retailers successful: those responding said they plan to diversify their supplier base while 46% expect to increase onshoring, 44% will invest more in supply chain technology and 43% will increase automation.
Physical stores will be a big part of 2024 planning these executives said. The vast majority, 96%, said they plan to open stores but nearly as many, 89%, expect to close some existing locations.
The use of AI – artificial intelligence – will be a big factor in 2024 planning. More than half of the executives said they plan to invest in AI to support their marketing (56%) and financial forecasting (52%). Not surprisingly, fewer than 1% reported no AI investment strategy for the coming year.