With the impending holiday season, one of the most pressing concerns on everyone’s mind is, undoubtedly, if they will receive their gifts in time. As we have become accustomed to in recent years, a large portion of your holiday shopping was most likely done online. Not only did this allow you to lounge comfortably on the couch while crossing things off of your loved one’s wish lists, but record-fast delivery times gave you peace of mind that your gifts would arrive in time—or so you thought. While we are in the midst of holiday shopping, this year’s Cyber Monday and Black Friday statistics shed some light on the true impact that ecommerce and our newfound expectation of same-day or two-day delivery have on supply chain. According to the National Retail Federation, 196.7 million Americans shopped online during Black Friday and Cyber Monday this year, a record high since 2017 and a 17 million increase since 2021.
While this rapid growth makes it apparent that consumers have fully embraced ecommerce, the supply chain has proven to be less dynamic. According to the Supply Chain Management Review in August, 95% of merchants reported having to adjust their supply chain approach ahead of the holidays in preparation for the influx of ecommerce. While these statistics capture the reality of this season, the popularity of ecommerce, and the subsequent supply chain issues that stem from it, these trends are not merely limited to a couple of months. In facing this new reality, retailers have begun to pivot in an effort to bring shoppers back into stores, making their stores more experiential, and adjusting their product merchandising in response to supply chain issues.
As retailers holistically begin to downsize and reposition, there is an impending threat of obsolescence to physical stores in their entirety. At Streetsense, we approach these changes from both a quantitative and qualitative perspective, using our data-informed strategies and layering in the qualitative and constantly changing realities. Crafting creative and effective solutions to address the challenges of ecommerce, looming issues with supply chain logistics, or the next challenge facing retail, requires understanding the unique perspectives of all parties involved – from the consumer, to the retailer, to the landlord. Holistically analyzing factors such as existing build-outs or zoning, surrounding demographics, market demand and nuanced consumer retail preferences has allowed the Streetsense team to leverage our collective expertise to create dynamic strategies throughout this “interesting” year for retail.
By determining highest and best use, defining market insights and trends, and helping clients understand their target audiences and how to build for, attract, and communicate with them, our Research and Analysis team defines the market insights and trends that fuel all of our multidisciplinary services—ranging from Branding and Real Estate Strategy to Public Non-Profit Solutions.BACK TO LATEST