Consumer sentiment dropped slightly in July but remained up 22% compared to 2022. The current index is about 42% above the all-time historic low reached in June of 2022 and is approaching the historical average of 86. Resilient consumers drove July retail sales above expectations, driven by strong sales in food services and dining (11.9%) and non-store retail (10.3%). With several hard goods segments seeing YOY declines, e-commerce continues to be a retail growth driver.
Digital marketing channels are becoming more competitive and require increasingly complex analytical skills and more targeted content. Retailers must prioritize e-commerce for holidays to drive expanded consumer reach, deliver a personalized shopping experience, seamless transactions, and gain a competitive advantage. Retailers must cater to evolving consumer preferences during the critical fourth quarter to maximize sales. AI is on the horizon and retailers need to develop a long-term roadmap to navigate the transition. The proper AI tools can enhance marketing with personalized insights, efficient inventory management, predictive analytics, customer engagement, and improved shopping experiences, all of which will play a part in driving sales in an increasingly challenging sales environment.
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