50+ Retail Statistics Revealing Latest Market Trends

Retail has expanded beyond the walls of brick-and-mortar shops. It’s all about offering an omnichannel experience to modern customers. 

The retail sector requires you to effectively manage day-to-day operations, such as inventories, helping customers checkout, and scheduling staff shifts. Many retailers use retail management software to manage these operations. It helps streamline the process and delivers a single source of truth, allowing different departments to collaborate easily.

Let’s discuss the state of retail more closely and prepare for potential opportunities in the foreseeable future. 

The state of retail worldwide

Global retail is projected to trend upward in the next three years. Europe’s retail growth was negative for several months, while some US retailers filed for bankruptcy. However, the retail market in the U.K. and Canada region is showing positive growth. 

Many U.S. retailers have started adopting AI, and self-checkouts are becoming a popular option. These statistics help us understand the state of retail worldwide.

• Global retail sales are projected to grow from $27.4 trillion in 2023 to $32 trillion in 2026.
• By April 23rd, 2023, eight large US retailers had filed for bankruptcy protection, surpassing the ten total retail bankruptcies in 2022.
• Only 29.8% of U.S. retailers use or plan to implement AI-based POS/SCO video analytics technology.

• About 56.5% of American retail workers are women.
• Self-checkouts account for approximately 38% of all checkout lanes at US grocery stores. 
• Canadian retail sales increased by 2.4% year-on-year in March 2023, ranking among the highest globally.
• As of April 2023, Europe’s retail growth has been negative for seven consecutive months and ten of the last twelve months.
• U.K. retail sales increased by 0.5% in April 2023, followed by 0.3% in May 2023.

Discovering trends in retail profits and losses

Retail sales increased year over year in 2023; however, some categories, like furniture, electronics, and appliances, saw sales drop. Retail shrink, which encompasses inventory loss due to theft, fraud, or damages, contributed significantly to these losses. 

Losses due to theft increase as the rate of organized retail crimes increases considerably. Let these stats show you the real picture. 

• US retail sales were projected to increase by 4% to 6% in 2023.
• As of May 2023, retail sales are up approximately 4% year-on-year, but the “Furniture & Home” and “Electronics & Appliances” categories are down 5% and 4%, respectively.
• Retail industry volatility has increased by 250% since 2010, with $200 billion in sales traded among competitors each year.
• Best Buy’s profit margin was 2.93% in April 2023, down from 5.05% in October 2022.
• Walmart’s profit margin fluctuated between lows of around 1% and highs of nearly 4%.
• Shoplifting costs the retail industry $100 billion per year.
• Internal theft causes 28.5% of shrinkage, while external theft accounts for 37%. 

• A "flash mob burglary" occurred on August 8, 2023, when 30 thieves stole $300,000 in merchandise from a Yves St Laurent store in Glendale, California. 

Comparing e-commerce and brick-and-mortar retail 

During the COVID-19 pandemic, some retail customers shifted to e-commerce, increasing the e-commerce share of total retail sales. Still, global brick-and-mortar sales are substantially more than e-commerce sales as of 2023. 

Let us explore more about how these two modes of retail actually compare. 

• In 2023, global brick-and-mortar retail sales were estimated at $20 trillion, compared to $5.8 trillion in online sales.
• People spent 109 billion hours on e-commerce apps in 2022, up by 10% from 2021.
• U.S. retail foot traffic was down 3.7% in January 2023 compared to January 2022.
• Indoor and outdoor malls saw lower Black Friday traffic in 2022 than in 2021 (down 2.3% and 3.9%, respectively) and pre-pandemic numbers (down 14.2% and 17.8%, respectively).

• 81% of retail shoppers research online before making a purchase.
• Supercenters like Costco, Walmart, BJ’s, and Target have seen increased traffic compared to pre-pandemic numbers, while shopping center foot traffic has not yet recovered.
• 77% of shoppers use mobile devices to search for products, often comparing competitor products and prices in-store.

Understanding the employment side of retail 

From an employment perspective, the retail industry in the US has been growing steadily since 2018. Since 2020, the demand for retail jobs has quadrupled. However, hiring and retention are still challenges in this sector. Issues related to labor shortage and retention have been a significant concern after COVID-19. 

• The U.S. retail industry has seen an annual employment growth of 3.6% from 2018 to 2023.
• As of May 2023, the U.S. retail industry employs 15,550,800 people.
• 2.2 million people work in the Canadian retail industry.
• Demand for retail jobs in America has quadrupled since 2020.

• 39% of retailers are investing in tools and technologies for employees.
• 40% of retailers plan to invest in training staff to use technology to improve the in-store experience.

Observing retail marketing channels 

Ad spending in retail has increased significantly since 2020. Many retailers rely on both inbound and outbound phone calls as a channel to capture and convert retail leads. Moreover, retailers are expected to run both digital and conventional advertisements to attract people in brick-and-mortar shops as well as their online stores.

• The average cost for a retail lead is $34, and rising ad spending drives up the price.
• The average conversion rate for a retail lead is 3%, indicating that many leads do not turn into customers.
• In 2023, US retailers will spend over $50 billion on digital ads, a 50% increase from 2020.
• Consumers searching on mobile devices are 39% more likely to call a business.
• Retail customers are likely to call for purchases averaging $119, especially for expensive items requiring more information.
• 85% of marketers believe inbound calls are crucial to their digital-first strategy.
• 84% of marketers report higher conversion rates and larger order values from phone calls.

• 81% of brands plan to maintain or increase investment in livestream selling.
• 49% of brands plan to increase investment in social commerce in 2022.
•  54% of consumers plan to look at products online and buy in-store, while 53% will do the opposite.
• 46% of retailers plan to increase investment in digital channels like online stores, social commerce, mobile apps, and live-stream selling.
• 55% of consumers want to browse products online and check local availability.

Looking into challenges in the retail sector 

Retailers face a few challenges when aligning with shoppers’ preferences. Modern shoppers are more inclined toward sustainable products and packaging, encouraging retailers to find sustainable alternatives and innovate to make them cheaper. There’s a rising need to integrate online and in-store experiences and connect all marketing channels at the same time. 

Let these statistics show you the different challenges a retailer faces on the market. 

• 73% of retail consumers use multiple channels to shop, highlighting the need for marketers to connect all channels.
• 30.9% of retailers cannot track consumers across devices, and 38.2% can only track some consumers at a time.
• 84% of consumers believe retailers should better integrate online and offline channels.
• 35% of marketers say poor data quality affects their ability to target consumers with the right digital ads.
• 55% of brands say attracting foot traffic is a top challenge.
• 46% of customers prefer products with recyclable packaging, making it challenging for retailers to find more sustainable and probably costlier alternatives. 
• 39% of brands anticipate continued issues with shipping delays and costs, and 45% of shoppers prioritize precise delivery times.
• 32% of customers abandoned their carts last year due to long estimated shipping times, and 23% did so because there was no guaranteed delivery date.

Retail is growing 

These trends suggest that the retail market is on an upward trajectory. Based on the category of product you operate on, find the channel that will best suit you for retail sales and double down on it. Brick-and-mortar stores are catching up after COVID-19, and Gen-Zs are more inclined toward it to find the latest products. 

Interested in delivering an omnichannel shopping experience? Discover the omnichannel commerce software that will help you diversify experiences across multiple channels.

Edited by Monishka Agrawal