^{CHAPTER SEVEN:}
Despite Challenges, Retail Leaders Are Optimistic About the Future

Our Most Compelling Data:

78%

percent of retail leaders said they feel optimistic about the future of their company now compared to 12 months ago.

In the next 12 months

Retailers are focused on expanding most in three key areas:

Increasing the number of items or services offered
Investment in an online store
Creating or growing a loyalty or rewards programme

Retailers have been in survival mode for years. Now they’re ready to plan their futures.

While we’re all cheering for a stronger retail industry, it’s hard to imagine 2025 being a record year for most sellers.

At the same time, it’s almost impossible to ignore the chance retailers will have over the next 12 months to reshape their business’s future. And much to their credit, 78% of retail leaders told us they’re feeling more optimistic about their businesses than they were 12 months ago.

You might ask, “Why?”, but the better question may be, “Why not?”

The marriage between technology and the sales floor employees who use it has never been stronger, and retail leaders told us they’re eager to invest in software and digital capabilities to improve operations across every key business area we asked about. Meanwhile, the relationship between retail brands and their customers has never been deeper, with customer attitudes on data sharing and personalised communication channels opening the door for more precisely targeted offers. It’s reasonable to think those tactics will be welcomed by even more shoppers as industry adoption increases.

Retail leaders also told us they’re optimistic about investment in two key areas over the next 12 months: a heavier online store presence and more locations. These are important, as they show they feel the economy is strong enough to spend in areas that need significant, long-term commitments.

Key takeaway:

Retailers will always have challenges. And while the economic downturn of the last two years has been a big problem, it likely won’t prove to be a long-term industry-changing event. That means, for the first time since 2019, retailers of all sizes should have some runway to design their ideal futures in the coming year. These leaders need to take advantage of this window to map out their future growth, even if that means implementing just one or two vital changes.