Post pandemic, some things have changed, and some have returned to their pre-pandemic sate. An area that seems the most subject to this is the retail space. Placer.ai, a location analytics company that studies visit trends, trade areas, and demographics, recently published a white paper that gives some further insights into retail trends they are expecting to grow during 2024.
Placer identified eight trends that span different areas within the retail industry and range from mergers and acquisitions of grocery chains to the continued rise of thrifting for clothes. All the noted trends are in hopes that readers of the white paper can capitalize on what is to come within the retail industry.
A lot of data stems from trends that started in 2023. This includes things such as the strong turnout to movie theaters for Taylor Swift’s Eras Tour movie due to it being more experiential than other movies. This is also evidence for other trends highlighted by them, including that consumers are continuing to shift back to their old pre-pandemic habits.
#1: Popular events and viral happenings will create massive opportunities for local retail, dining, and advertisement: Events create a powerful draw that produce significant opportunities in the surrounding areas and reveal the need to update the way we view the event spaces themselves.
#2: Second-hand apparel will deliver value and visits: Consumers are looking to purchase clothes that are unique, affordable, and environmentally friendly; second-hand apparel fits all those criteria, so the category is expected to continue growing in 2024.
#3: Placemaking will be at the core of the brick-and-mortar strategies for developers and retailers: The art of placemaking is not just transforming large-scale real estate projects; individual retailers and companies are also leveraging placemaking tools to create spaces that give consumers multiple reasons to visit — and linger — in their stores and venues.
#4: Adding experiential components to traditional consumer-facing businesses will boost demand: The Eras Tour invited movie-goers to engage directly with the content, generating an excitement within the auditorium that drove fans to choose to watch the movie in theaters. GEN Korean BBQ also introduces a unique experiential aspect to its restaurants by inviting patrons to grill their own meats. Experience is a draw, and leaning into this reality can unlock success.
#5: Certain consumer habits will continue the shift back to the “old” normal: Some COVID-era patterns were already receding in early 2022, but some shifts have been longer-lasting, with the return to pre-pandemic habits still underway in several areas.
#6: Dining and retail concepts that focus on serving suburban audiences will see growth: Concepts like Shake Shack that are capitalizing on rising suburban markets are already thriving and are likely to see even more growth in 2024 as Americans continue relocating to less dense, more affordable areas.
#7: The grocery industry will continue to consolidate: Grocery consolidation can help companies penetrate new markets and reach new audiences, so grocery M&A activity is likely to continue shaping the industry in 2024.
#8: Retail media networks will gain momentum: Although the importance of retail media networks has continued to grow over the past couple of years, there is still a significant untapped potential in the space, and the innovative advertising platform is likely to take on even greater importance in the coming year.
For full details you can view the white paper published by Placer.ai here.
