On the halfway point of 2023, the retail industry has tackled rapidly changing consumer demands, store closures and bankruptcies and inflationary price trends — the economic headwinds have hit hard, leaving executives with a lack of control.

In the newest WWD-hosted webinar, Ethan Chernofsky, senior vice chairman of promoting at Placer.ai, joined Arthur Zaczkiewicz, executive editor of strategic content development at WWD, to see where retail sits on the half-year mark and discuss what retail will seem like within the second half of 2023.

Chernofsky addressed retail’s first-half challenges, acknowledging that retailers and types are still very much coping with the impact of several macroeconomic headwinds. Concurrently, consumer behavior shifts are happening which has created a trading down effect with increasing mission-driven shopping, especially in discretionary-oriented categories. But many of the forces impacting retailers equivalent to workforce shortages, inflation and provide chain disruptions are out of the direct control of executive leaders.

“The excellence you make is basically vital because you’ll be able to’t control [inflation],” Chernofsky said. “I believe when you accept the proven fact that it is a scenario which you can’t control, then there’s a few really vital things we want to remind ourselves of. First, the road is slick and never fully visible, you’re not growing as fast as you must be. The second piece is that there must be a shift in deal with not necessarily the short term, but what this implies for the long run.”

As latest consumer behaviors emerge, businesses should query in the event that they are likely to take care of or in the event that they will likely be a short-term phenomenon that may revert to pre-inflation behaviors. In lots of cases, equivalent to trading down and mission-driven shopping, latest behaviors could represent a latest opportunity for growth. Consumers have shown flexibility after they see advantages in behavior change which could be a win-win for retailers who can optimize the behaviors and maintain trends to drive success in the long run.

Importantly, certainly one of the largest long-term impacts of the last several years has been the move to earn a living from home and now a return to the office. The hybrid work schedule that many corporations have adopted has resulted in an almost 30 to 40 percent decrease in retail store visits. Chernofsky shared that companies that adjust their technique to accommodate the shift in traffic open themselves to latest opportunities. For instance, a deli which will have seen a decline in business on Mondays, as a consequence of people working from home, could deal with distribution that day while being open normally the opposite days of the week.

To make strategic decisions in regards to the next six months and even several years, Chernofsky said corporations should take a look at data by segmentation, where migrations are occurring, and where it is smart to achieve the goal consumer.

Discussing other long-term opportunities, Chernofsky said Placer.ai stays excitedly optimistic in regards to the potential of malls and the experiences that retailers can bring consumers to this place. The chance for fashion and wonder retailers has not modified but meaning that the long-term underlying aspects have as a more diverse set of offerings (equivalent to medical retail or purely experiential plays) have entered the mall.

“We’re in a difficult environment, we must acknowledge that, accept that and judge accordingly,” Chernofsky said. “But there are opportunities in a difficult environment and opportunity to take into consideration what’s really modified and take a look at things which may give a short-term boost and even potentially a long-term boost. Those two things occur concurrently. The situation is difficult, but crucial lesson is that there are opportunities.”

To learn more in regards to the state of Retail in 2023 and Placer.ai’s analytics solution, watch WWD’s full webinar HERE.