According to new research from American Express, bricks-and-mortar expansion, eCommerce improvements, and greater marketing investment are key priorities this year for UK retailers in their efforts to boost sales.
Amex’s research surveyed 500 senior decision makers across UK retail and hospitality businesses of all sizes, with at least one physical store, exploring their current challenges, investment priorities, and customer attraction strategies.
The findings reveal that improving their online operations is a top priority for retailers; almost a third (32 per cent) of the retailers surveyed plan to revamp their existing eCommerce presence or launch a new eCommerce site in the coming 12 months.
Perhaps somewhat surprisingly, the research reveals plans to continue investment in bricks and mortar, with almost a third (29 per cent) of respondents planning to open a new store or venue in 2024 and looking at large retailers specifically, over half (53 per cent) plan to open a new premises this year.
More broadly, the research points to a positive outlook for the year ahead amongst retailers, with 80% feeling confident they can successfully tackle the perennial challenge of attracting new customers and keeping existing ones.
Over a third (35 per cent) of retailers cited business development and marketing as important investment areas to help build connections with customers. Among those prioritising this, three-fifths (60 per cent) plan to experiment with new marketing channels, and over half (53 per cent) are ramping up activity on social media to help reach new customers and tap into trends that are exciting to shoppers.
Dan Edelman, General Manager, UK Merchant Services at American Express, said: “Our research reveals an optimism among UK retailers, with an appetite to invest to tackle the ongoing challenge of attracting and retaining customers. This comes with a recognition that, in a competitive landscape, retailers need to utilise all the channels available to them to build connections. It’s encouraging to see that a bricks and mortar presence remains key, in tandem with driving online growth, to create those customer experiences that encourage spend and lasting loyalty.”
The research also asked respondents about their views and use of AI, technology which is widely acknowledged as having the capability to enhance the customer experience. Of those retailers that are already using some form of AI, a significant 83 per cent reported a positive impact, with ‘improving customer experience’ ranked as one of the top three benefits witnessed.
However, the findings also reveal a potential missed opportunity for some; almost three-fifths (59 per cent) of the small and medium-sized retailers surveyed said they were yet to adopt AI in their business at all, in stark contrast with just 6 per cent of large retailers yet to do so. Barriers to adoption cited by respondents included cost of implementation and lack of perceived relevance to their business, with these sentiments more keenly expressed among smaller retailers.
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