What’s in Store?

2024 • Trends

With projections aplenty, key players in both the small business and the retail sectors share their views on what’s ahead for 2025. Here are some of those projections, including both challenges and opportunities.

Tip: Savvy retailers are using transparency in their supply chains as a competitive tool.

BUSINESS ISSUES

As reported by several sources, including the U.S. Chamber of Commerce’s Small Business Index Q4 2024 [VD1] (https://www.uschamber.com/sbindex/summary), key issues include:

• STAFFING. There are more folks onboard, which presents challenges in terms of training and onboarding. Retail hiring outpaces that of other sectors. In fact, small businesses in retail are more likely than those in other sectors to say they increased staff in the past year (26% vs. 16%, respectively). Source: U.S. Chamber of Commerce’s Small Business Index Q4 2024 (https://www.uschamber.com/sbindex/summary)

• OWNERSHIP. There is a difference among the generations when it comes to current staffing trends. Small businesses owned by members of Generation Z or millennial generations are more likely than their older counterparts to have increased staff in the past year (30% Gen Zers,19% Generation Xers, and 12% baby boomers and older). Source: U.S. Chamber of Commerce’s Small Business Index Q4 2024 (https://www.uschamber.com/sbindex/summary)

6 out of 10 In a survey of Generation Z consumers, 61% reported a preference for shopping at physical stores.

RETAIL ISSUES

What’s on the minds of these owners when it comes to retail issues? Here are a few of the most top-of-mind issues.

• SUSTAINABILITY REDUX. Savvy retailers are using transparency in their supply chains as a competitive tool by making their sourcing practices every bit as visible as their price tags. Source: Forbes (https://www.forbes.com/councils/forbestechcouncil/2024/10/17/why-transparency-is-vital-for-your-business-payments-and-supply-chains/)

• EXPERIENCES. Play to your strength. In a survey of 1,000 Gen Zers, conducted by wholesale marketplace giant Faire, 61% prefer shopping at a physical store. Source: Faire (https://www.faire.com/blog/wp-content/uploads/2023/10/How-Gen-Z-shops.pdf)

• CORRELATION. Here’s a bonus. There’s a synergistic relationship, called a halo effect, between physical stores and online sales. The point? In-store sales actually help boost online business, as well. The source: International Council of Shopping Centers (https://www.icsc.com/news-and-views/icsc-exchange/new-icsc-study-the-halo-effect-iii-where-the-halo-shines-quantifies-how-physical-stores-drive-online-sales)

What about you? Do you see synergy between online promotions and in-store sales? Tell us about it and share in the conversation on Facebook here.