Retail Radar 19-July-2024

Retail Radar – Weekly

Welcome to "Retail Radar," your weekly insights offering innovative solutions and forward-thinking strategies to navigate the dynamic retail landscape, helping you lead effectively and stay ahead in an ever-changing market.

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"Retail Reimagined: New World Order. Spending in July.

As we move through the summer of 2024, traditional retailers have faced a complex landscape marked by modest growth and ongoing challenges. Analyzing the months of May, June, and early July reveals how the retail sector has evolved compared to the same period in 2023, providing insights into the performance of traditional and online retail, major sales events, and the entertainment industry's significant licensing deals.

Retail Trends: May, June, and July 2024 vs. 2023

In May 2024, retail sales exhibited a slight increase of 0.1% from April and a 2.3% rise compared to May 2023. This growth was primarily driven by consumers shifting their spending back to goods from services, reflecting ongoing adjustments post-pandemic. By June, the month-over-month growth in retail sales was 0.3%, with a year-over-year increase of 3.07%.

Categories such as online sales, general merchandise, and clothing and accessories led the charge, demonstrating resilience despite broader economic pressures. However, the momentum slows as July progresses, and sales growth is flattening. The stability in economic indicators did little to boost consumer confidence, which remained suppressed by inflation and global uncertainties (NRF | Homepage ) (KPMG ).

The economy and a complex political and electoral climate contribute to consumer uncertainty.

Amazon Prime Day 2024: Can a July Holiday Season Bring a Light of Hope?

Amazon Prime Day 2024 stands out as a significant highlight, showcasing how e-commerce continues to dominate even after ten years.

In 2021 and 2022, Prime Day was already a significant event, driving substantial revenue and engagement. However, the 2023 edition faced slight consumer fatigue and economic headwinds, leading to tempered growth.

In 2024, Amazon revitalized interest by introducing new features such as exclusive early access deals for Prime members and an expanded selection of discounted items across more categories, including small businesses.

New Entrants in Christmas in July Savings

The "Christmas in July" concept has gained traction, with new entrants joining the fray. Retail giants like Walmart and Target, traditionally known for their significant holiday season sales, launched mid-year promotions to capture early shoppers and clear out summer inventory. Kohl's joins other retailers in holding summertime sales that appear to answer Amazon's Prime Day. The department store's “Summer Cyber Deals,”?from July 8 through July 11, will offer up to 60% off across the entire assortment.

The reasons behind this strategic move are multifaceted. First, the competitive retail environment necessitates constant innovation to attract and retain customers. Consumers have been trained to wait for big deals to crack open their larger discretionary spending. By creating a mid-year event, retailers hope for a double tap on revenues.

Mid-year sales provide an opportunity to boost revenue during typically slower months. Second, the lingering effects of the pandemic have altered shopping behaviors, with consumers now more inclined to spread out their spending rather than concentrate it around traditional holiday periods.

Finally, economic factors such as inflation and fluctuating supply chains have prompted retailers to adopt flexible sales strategies to clear out inventory and manage cash flow effectively.

Summer 2024: The Crucial Moviegoing Season

In the entertainment world, 2024 has seen lackluster out-licensing deals between major movies and top brands.

The summer of 2024 is shaping to be a cautiously good season for movies, with several anticipated releases drawing audiences back to theaters. Paul Dergarabedian, the senior media analyst at Comscore, emphasized the importance of this season, stating, "Summer is the most important moviegoing season of the year, accounting on average for nearly 40% of the total domestic annual revenue, so as goes the summer so goes the year." Theatres and brands look for a $100M weekend opening to forecast performance.

Key releases include:

• "Deadpool & Wolverine" (July 26): Ryan Reynolds returns as Deadpool, joined by Hugh Jackman as Wolverine in a film that is highly anticipated for its weekend for summer 2024.
• "Bad Boys: Ride or Die" (June 7): Will Smith and Martin Lawrence reprise their roles, which sees them rooting out corruption within their department (Columns ). "Bad Boys: Ride or Die" had a strong performance during its opening weekend, grossing $56 million domestically and an additional $48.6 million internationally, for a total of $104.6 million worldwide. Social media played heavily with campaigns focusing on audience nostalgia.
• "Inside Out 2" (June 14): The beloved characters return to explore new emotions as Riley navigates adolescence (Columns ). "Inside Out 2" had a phenomenal opening weekend, grossing $155 million in North America. This strong performance made it the second-biggest opening ever for an animated film, following "Incredibles 2," which earned $182 million in its opening weekend.
• "Twisters" (July 19): A sequel to the 1996 classic "Twister," directed by Lee Isaac Chung and featuring a dynamic cast (gamesradar ).

These films, along with other notable releases such as "A Quiet Place: Day One" ($47.5M opening weekend) and "Horizon: An American Saga" ($11M), were mixed.

Call to Action: Embrace the Future of Retail and Entertainment

As we navigate through 2024, it's clear that both the retail and entertainment landscapes are rapidly evolving. Traditional retailers and movie studios are reinventing themselves, leveraging technological advancements and strategic marketing collaborations to stay relevant. Whether through mid-year sales events like "Christmas in July" or innovative partnerships with Hollywood, the key to success lies in adaptability and foresight.

Now is the time for retailers and entertainment companies to double down on their efforts, embrace digital transformation, and engage with consumers in new and exciting ways. The future is not just about surviving but thriving amidst change. So, gear up, innovate, and let your business be the beacon that guides the revolution. Don't just follow the trends—set them and watch your brand soar to new heights.

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?Onward.

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