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Retail trends 2024: Defining the future of retail

Fynd decodes 2024’s top retail trends: AI, personalized shopping, unified inventory, and store tech.

June 5, 2025

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2024 is an exciting year, eagerly looked forward by retailers. Conquering the restrictions of COVID in 2022 and battling with supply chain crisis in 2023, 2024 is finally going to give retailers a platform to plan, perform and grow beyond these challenges.Here are some of key retail trends , some becoming a reality after being talked about much in recent years, and some becoming a necessity or must-have after being a good-to have in the pastIn the dynamic world of retail, the anticipation for 2024 is palpable. Having weathered the storms of COVID restrictions in 2022 and grappled with supply chain crises in 2023, retailers are primed to seize opportunities and flourish in the upcoming year.This pivotal year promises the realization of trends that have long been discussed and coveted, alongside the transformation of once 'nice-to-have' elements into indispensable pillars for success. Join us as we explore the key retail trends that are set to define the industry's trajectory in 2024.

I. Technological Transformations in Retail

AI & ML in Retail

You might be thinking: hasn’t that already happened? However, trends suggest that, when it comes to artificial intelligence (AI), we've only seen the tip of the iceberg. AI-powered e-commerce solutions are expected to form a market of $16.8 billion by 2030, with a CAGR of 15.7% over the next eight years, while Forrester predicts that ‘AI will permanently upend the agency landscape in 2024.’The hype is real. AI has opened new avenues of automation and efficiency for retailers and 2024 will witness AI leveraged at peak.

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1. AI-powered customer experience

Chatbots & virtual assistants are great ways to enhance customer experiences and reduce human workload. AI-virtual assistance can help recommend products based on customer preferences and past purchase history. Natural language processing (NLP), machine learning (ML), and deep learning (DL) in retail will help respond to customer queries more efficiently and also improve in-store operations. ‍

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AI-powered search engines make product discovery faster and more convenient for customers and help the right products reach the right audience, in just a matter of a few keywords. ‍

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Product recommendation: AI prediction technologies utilize first-party data to streamline UX, steering customers to exactly where they need to be and removing distractions along the way“In 2024, agencies will invest heavily to build bespoke, enterprise-ready AI solutions, formed by a combination of foundational AI models from tech partnerships, their own audience and creative intelligence, clients’ first-party data, and the brand’s standards.”

‍‍Forrester predictions 2024‍‍

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Chatbo market revnue worldwide from 2018 to 2027

2. AI-powered marketing

Generative AI can help create great content and creatives to fuel your marketing strategies and transform UI/UX.It can also help in creating personalized ads. Leveraging AI for product catalog management is something to look out for 2024.

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Another use case for AI in retail marketing is setting dynamic pricing and deals.Cost and pricing optimization in the storefront and while sourcing goods from suppliers is another important area of application for AI. This allows retailers to improve margins and optimize marketing strategies.

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3. AI prediction technologies

Retailers will be adopting AI to increase supply chain efficiency with predictive inventory management and stock allocation.‍Forecasting customer behavior is now easy, quick, and efficient with AI and empowers retailers for strong targeted marketing strategies.

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Fraud detection That's why many corporations, especially those operating in ecommerce, rely on machine learning for fraud detection. Indeed, algorithms can easily spot suspicious account operations breaking standard behavioral patterns, such as a spike in transaction frequency or money transfers with other high-risk accounts.

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AR/VR Integration

1. AR/ VR for customer experiences

Virtual try-on & product visualization ‍

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Virtual try-ons have gained rapid momentum in the past year, and 2024 will witness a wider adoption of the trend.

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Allowing the customer to try before purchase not only enriches their buying experience but also strengthens purchasing decisions, hence reducing return rates and increasing conversions.

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Placement preview

In this scenario, immersive technology can help customers discover what a particular product would look like in their home. For example, a client can choose some furniture from an online catalog and use the AR app to visualize it in their apartment, view the item from different angles, and then buy it, confident in the purchase.

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Ar/VR for process optimisation and efficiency

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‍staff training‍

costly, time-consuming, consistent across geographiesremote, standardised training in a safe and cost-effective manner. By incorporating these technologies into training programs, businesses can provide a consistent and engaging learning experience for their field force, while also reducing costs and tracking progress more effectively.train their employees on customer service, store design, and merchandising.‍

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warehouse‍‍

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in store enavigation ARVR for analytics

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ARVR for marketing

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packaging

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Vr ads

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2. V-commerce

E-commerce has already found a solid place in the commercial industry and became more popular than physical retail. Selling the items through the Internet using virtual reality started to interest retailers in a way that was separated into the sub-category called V-commerce.

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The ability for customers to have virtual experiences with products helped to find a solution to one of the most prominent problems of e-commerce – reducing the number of shoppers that abandon their shopping carts before purchase. Before that, the number was extraordinary – 78%.

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VR showrooms: Replacing physical showrooms with virtual ones, retailers help customers try out and purchase products online. With high-resolution 3D images and video, overlaid product descriptions, zoom-in, fabric close-ups, and multiple experience customization options, VR showrooms are fully equipped to deliver life-like experiences at a fraction of a live fashion show’s cost.

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Advertisement:VR helps marketers deliver interactive and, thus, more engaging ads via gamification.

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Instore-navigation & merchandising:Both online and brick-and-mortar stores use product merchandising as a crucial marketing activity that relies on customer data to prove effective. Virtual reality adopted for marketing research purposes can fill this data gap, eliminating guesswork. With headsets tracking users’ eye movements, in-store merchandisers can accurately track consumer perception and intent and, using this data, determine optimal product placement in-store. Also, thanks to the flexibility of virtual reality design, marketers can effortlessly alter test case variables and try out different scenarios.

Retail stores can equip their offline sales areas with specific AR markers, which can look like normal stickers, to identify the customer’s location. Using an AR-based mobile app, a customer can receive clear instructions on where to find a particular product or store department, which simplifies the purchasing process and improves customer experience. Retailers can equip product packaging with interactive QR codes or other markers that customers can scan with an AR-powered mobile app. Such a marker enables buyers to get more information about the purchased product or check the brand’s discounts and special offers.‍

product information‍

Warehouse optimization

Finally, retailers can enhance their warehousing operations with VR and AR technology. For instance, using AR, employees can scan an item with their cameras to get information about its particular shelf in a warehouse. VR, in turn, allows employees to visualize warehouse spaces in a virtual environment, simplifying planning and enabling more reasonable distribution of goods in the warehouse.

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Interactive & holographic displays -NFT. IoT,5G..?Supply chain transparency with block chain & NFTNFT Retailers can integrate these NFTs into physical products. This creates a unique identifier that connects the tangible item to its digital representation. This fusion allows customers to interact with both the physical product and its digital record, providing an enhanced level of trust and engagement.

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Achieving Transparency with Blockchain

Today’s informed and smart stakeholders, internal and external, are keen on how a consumer business maintains its process transparent. This brings to businesses the need to record every step in the supply chain in a secure and unchangeable manner. The rapid adoption of blockchain in the consumer industry is the result of this change in mindset. Looking ahead, from 2023 to 2028, the blockchain in retail market size is anticipated to surge from $0.31 billion to $2.62 billion, with a CAGR of 52.92%.

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One of the key benefits of employing blockchain in this industry is the elimination of intermediaries. By cutting out middlemen, retailers can streamline processes like contract management and auditing, resulting in significant time and cost savings. Such efficiency gains can be particularly crucial in an industry where margins can be tight, and competition fierce.

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Companies like De Beers have implemented blockchain to assure customers that their diamonds are conflict-free and ethically sourced. American Express employs it to improve its membership rewards program, enabling customers to use their loyalty points seamlessly across a range of brands and segments. Carrefour, on the other hand, utilizes blockchain to meticulously monitor the supply chain to keep the processes transparent and assure the authenticity of products.

Robotics & Automation

II. Customer-Centric Experiences & Retail Evolution

A. Sustainability & Retailtainment

1. Reducing carbon footprint & energy efficiency

- Use-Case: Implementing sustainable practices to decrease environmental impact. - Benefits: - Positive brand image and consumer loyalty. - Cost savings through efficient resource usage. - Example: Patagonia's sustainable initiatives reduce environmental impact.

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2024 will see the rise of ‘recommerce’

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Although retailers will focus on using new technologies to enhance customer experience, they’ll also be looking at new business models to grow revenue. Stratten predicts a “resale boom” in 2024 as retailers further expand into recommerce.

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Selfridges wants half of its sales to be from resale, repair, rental or refills by 2030. H&M and Uniqlo have dedicated more floor space to rental and resale initiatives. And demand is growing for resale marketplace sites such as Vinted, Vestaire and Depop.In 2024, recommerce will be a profit-driver not a supplementary sustainability initiative, says Leon Bailey-Green, founder of Upper Clash and Retsre. He expects to see more retailers starting to strategically incorporate recommerce into long-term plans.

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“The retail industry generally operated on a ‘make it, sell it’ cycle. But we will witness a shift as all retailers and brands allocate a portion of their revenue to recommerce, spurred by factors such as legislation, competition and growing customer demand,” he adds.A recent study by Barclaycard Payments shows that recommerce contributes nearly £7bn to the UK economy. More than four in 10 (44%) consumers buy more second-hand items than they did a year ago. “There’s a big market for resale and at the luxury end it’s an entry point, especially for younger customers who are interested in luxury but don’t yet have the disposable income. Resale isn’t a new trend, but it’s about to explode,” he adds.

Sustainability for Long-term Value

The retail and consumer industry is making a genuine attempt to adopt and build sustainable practices, driven by increasing awareness and preference amongst stakeholders towards green initiatives. Today, a remarkable 80% of American consumers consider sustainability when making at least some of their purchases.

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Consumers and investors alike are increasingly scrutinizing the sustainability efforts of retailers. So, adherence to established frameworks and regulations, along with accurate reporting, has become crucial for maintaining trust and credibility in the market. Currently, the retail supply chain contributes to a staggering 25% of global greenhouse gas emissions. Therefore, reducing emissions across the supply chain has become a top priority for the industry.

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Sustainability-prompted shift in consumer behavior has also led to a surge in demand for products marketed as sustainable. Sustainable Market Share Index Report reveals a near two-fold growth rate for sustainably made products as compared to their non-sustainable counterparts. They registered a five year CAGR of 9.43% as compared to 4.98% for its conventional counterparts.

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Several industry leaders are embracing sustainability to achieve their long-term green goals. H&M has launched a sustainable fashion line and is committed to using 100% sustainable or recycled materials by 2030. Nestle has set an ambitious goal of achieving zero net greenhouse gas emissions by 2050. Similarly, Home Depot has implemented sustainable practices, such as recycling and waste reduction, and has committed to reducing its carbon emissions by 50% by 2035.

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To keep track of their performance in the area and meet periodic targets, consumer businesses are integrating sustainability analytics into operations. They are utilizing data-driven insights to optimize their energy usage and reduce inefficiencies.

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2. Retail-marketing-as-entertainment initiatives

- Use-Case: Engaging customers through entertaining retail experiences.

- Benefits:

- Increased foot traffic and customer engagement.

- Differentiated brand perception and memorable experiences.

- Example: Lego's in-store events engage customers with interactive play sessions.

B. Phygital Shopping Experiences

1. Integration of physical & digital retail spaces -

Use-Case: Seamlessly merging online and offline shopping experiences. - Benefits: - Omni-channel shopping convenience for customers. - Increased sales opportunities across platforms. - Example: Burberry's stores offer digital experiences alongside traditional retail.

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2. Smart payment & self-checkout systems

- Use-Case:

Streamlining payment processes for a frictionless experience.

- Benefits:

- Reduced checkout wait times and improved customer satisfaction.

- Cost savings by minimizing labor required at checkout counters.

- Example: Walmart's Scan & Go allows customers to self-checkout via app.

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III. Human Capital & Workforce Advancements

A. Investing in People & Workforce Development

Talent acquisition & frontline staff development

- Use-Case: Attracting skilled talent and nurturing frontline expertise.

- Benefits: - Improved customer service quality and brand representation.

- Higher employee satisfaction and retention.

- Example: Starbucks' training programs focus on employee development.

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2. Retail Cloud Platforms & Fulfillment

Efficient Inventory Management:loud computing enables real-time access to data, cloud architecture, and analytics platforms, allowing retailers to build predictive and prescriptive inventory forecasting models. This significantly reduces issues such as stock shortages and provides a broad view of stock availability across multiple locations. With cloud-based inventory management, retailers can synchronize inventories, check stock availability in real-time, and optimize their supply chain operations.

Big data ? Data security

Cloud computing plays a vital role in managing and securing large volumes of business-sensitive data. Storing data on the cloud provides advanced security measures such as firewalls, encryption, event logging, internal firewalls, and physical security. By leveraging these features, retailers can protect their confidential business data from network infiltrations, DDoS attacks, and ransomware, ensuring the integrity and privacy of customer information.

To retain competitiveness and thrive, businesses have to move beyond the traditional supply chain, ERP and CRM. Cloud adoption in retail is growing exponentially. Gartner, an information technology research and consultancy firm, has forecasted that by 2022, 90% of organizations will be using cloud services. It also forecasts that spending in the retail industry is expected to increase to an estimated US$257.1 billion by 2025, up from US$182.5 billion in 2020.Cloud computing is increasingly helping the retail industry by reducing infrastructure, storage and computing costs and enabling real-time access to inventory and operational data. Some of the different aspects of the use of this technology are;

By helping to simplify the process. Moving the inventory data, orders and shipping to the cloud help create a real-time exchange of data and results in a quick turnaround time for processing orders, restocking and on-time fulfillment of supply. It helps in simplifying workflow, improving efficiency, and end-user experience.

With regular updates and upgrades to the data security, crucial information like client profiles, inventory, etc. is protected. Loss of personal data is one of the significant causes of business failure. Data security and integrity are extremely important to every business.

With data available on the cloud, supply chain management becomes easier. Cloud computing connects every part of the business and provides better visibility. This leads to reducing issues like stockout, optimizing inventory, and capturing real-time location data.

Cloud computing can help predict trends and also help retailers create new products based on customer feedback. It helps communicate with clients in a better and more efficient manner.

Cloud computing helps in refining customer experience. Cloud services provide huge and efficient computing resources and analysis to understand the buying behavior of customers.

Cloud computing increases profitability by cutting down on costs for increasing infrastructure, maintenance, operations etc.

Data is the keyword to the whole retail business. Customer data, inventory data, analytical data, results etc form a digital landscape for a retailer. And such data can get corrupted, or deleted. Backup and restoration of such data are extremely important and cloud-enabled disaster management forms the backbone of cloud computing. A backup and recovery model is essential to a business and thanks to cloud computing it can be completely automated.

Inventory management is a challenging task for all businesses and particularly so for distributors to maintain, manage and track the inventory. Real-time tracking and monitoring benefits using cloud computing help businesses effectively.
- POS updates happen in real-time with integration between POS and the back office.
- Real-time inventory tracking using RFID or sensors.
- Mobile integration

Platformization of retail is a strategy that aims to create new growth channels

ECommerce platforms are expanding the demand for digitalization by delivering seamless services through platforms. Platformization applies to digital platforms that provide smooth interaction between retailers, consumers, and stakeholders. This approach unifies different services to develop a single interface where consumers can access all their needed services. One example of platformization is Amazon, which is a prime example of employing a platform-based business model to connect inaccessible industries. It showcases the transformative power of platformization and what it offers to the evolving retail industry.

https://www.everestgrp.com/it-services/striking-the-right-chords-composable-platforms-to-orchestrate-supply-chain-platformization-in-the-retail-and-cpg-industry-blog.html‍

Consumer Data Privacy & Security
- Use-Case: Ensuring customer data protection in retail operations.
- Benefits:
  - Establishing trust and loyalty among customers.
  - Compliance with evolving data privacy regulations.
- Example: Apple's stringent privacy policies safeguard customer data in Apple Pay transactions.

YouUse the above to write a well structured blog with a very short introduction, one liner conclusion and a CTA for FyndBig data managing data from all channels and processing unstructured data with the use of AI willTo understand consumer behaviour-to prcess unstructured dataChatGPTChatGPT

Blog: Unveiling Retail 2024: Trends Shaping Tomorrow's Shopping Experience

Introduction: In the ever-evolving world of retail, 2024 marks a significant turning point, ushering in a wave of technological innovations, customer-centric experiences, and a redefined approach to workforce development. Let's delve into the transformative trends that are reshaping the landscape of retail as we know it.

I. Technological Transformations in Retail

A. AI in Retail

AI-powered chatbots & virtual assistants: Macy's virtual assistant handles customer queries efficiently, enhancing service 24/7, and reducing workload on human agents. Personalized recommendations & dynamic pricing: Amazon's recommendation engine boosts sales through targeted marketing and improved customer engagement. AI Prediction Technologies & search engines: Google's adaptive search algorithms refine user experience and optimize inventory management.

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B. AR/VR Integration

Virtual try-on & product visualization: IKEA's AR app reduces return rates and increases confidence in purchasing decisions. Interactive & holographic displays: Adidas captivates customers with holographic displays, enhancing brand visibility and recall.

II. Customer-Centric Experiences & Retail Evolution

A. Sustainability & Retailtainment

Reducing carbon footprint & energy efficiency: Patagonia's initiatives bolster a positive brand image and cost savings. Retail-marketing-as-entertainment initiatives: Lego's in-store events create memorable experiences, driving foot traffic and engagement.

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B. Phygital Shopping Experiences

Integration of physical & digital retail spaces: Burberry merges online and offline shopping, increasing sales opportunities. Smart payment & self-checkout systems: Walmart's Scan & Go reduces checkout times, enhancing satisfaction.

III. Human Capital & Workforce Advancements

A. Investing in People & Workforce Development

Talent acquisition & frontline staff development: Starbucks' training programs elevate service quality and employee satisfaction. Retail Cloud Platforms & Fulfillment: Shopify's platform aids retailers in seamless online operations, offering scalability and enhanced security.

Additional Point:

Consumer Data Privacy & Security Ensuring customer data protection, Apple's privacy policies in Apple Pay transactions build trust and comply with regulations.

Conclusion: As we step into the retail landscape of 2024, these trends redefine the shopping journey, from personalized experiences driven by AI to sustainable practices and empowered workforces. Embrace the future of retail today!Call-To-Action: Experience the future of retail with Fynd - your gateway to seamless shopping in 2024 and beyond! Explore now.

This blog touches upon the innovative strides reshaping retail, presenting a snapshot of what consumers can expect and how brands are adapting to meet evolving demands.

Gen AI

Sustainability

Big Data & analytics

5G-powered shopping experiences

AR/VR

Smart shopping experiences/ immersive shopping experiences

Cloud platforms

Retail fulfillment

retail-marketing-as-entertainment or retailtainment.

Phygital

AI and subset technologies like natural language processing (NLP), machine learning (ML), and deep learning (DL)
Investing in people/ workfroce/ frontline people/talented store associtaes

AI-powered chatbots

virtual assistants

AI-driven personal recommendations

generating personalized ads and content, setting dynamic pricing and deals,

AI Prediction Technologies

AI-Powered Search Engines

predictive inventory planning and stock allocation

Cost and pricing optimization in the storefront optimizing for efficiency, quality, and cost and reducing carbon footprint

energy efficiency of their operations

AR/VR

virtual try-on, personalized recommendations,

3D product visualizations

interactive and holographic displays

scent and sound-based experiences

blockchain, NFTs, IoT, and 5G to improve supply chain transparency

enable product authenticity

facilitate distributed order management

optimize inventory, pricing, and marketing strategies.

insights into previously unmeasured metrics of retail that reveal unexpected areas for process improvements

better understanding of store and workforce performance as well as customer traffic data.

smart payment and self-checkout systems

automating mundane tasks such as merchandising and customer service

Last-mile delivery services

micro fulfillment centers

local and hyper-local delivery services

Metaverse, non-fungible tokens (NFTs), and gamified brand experiences

Sensor-equipped smart shelves capture data on customer behavior,‍

https://www.youtube.com/watch?v=wvmkD_xdD4s

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‍‍https://www.youtube.com/watch?v=qneQzB9-_7g

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‍‍https://chat.openai.com/share/8dccadb5-b5f4-4b94-aecb-07920aecf5c6

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‍https://www.youtube.com/watch?v=DD_t4M98WsU‍‍

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https://www.gartner.com/en/digital-markets/insights/2024-tech-trends-in-retail‍

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The Future of Retail Technology: Trends to Watch in 2024. https://multimediaplus.com/the-future-of-retail-technology-trends-to-watch-in-2024/.

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(2) Gartner Top 10 Strategic Technology Trends 2024. https://www.gartner.com/en/articles/gartner-top-10-strategic-technology-trends-for-2024.

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(3) Top 8 Retail Industry Trends in 2024 | StartUs Insights. https://www.startus-insights.com/innovators-guide/retail-industry-trends-innovation/.

‍https://www.mckinsey.com/industries/retail/our-insights/state-of-fashion‍‍

https://www.mckinsey.com/capabilities/operations/our-insights/navigating-the-new-normal-operations-insights-for-2024‍‍

https://www.rallyware.com/blog/3-trends-set-to-boost-retail-sales-in-2024

‍‍https://www.n-ix.com/retail-technology-trends/

‍‍https://www.forbes.com/sites/forbestechcouncil/2023/12/20/4-trends-that-will-shape-data-driven-e-commerce-in-2024/‍‍

https://www.shopify.com/in/enterprise/global-ecommerce-statistics‍‍

https://www.cegid.com/global/blog/luxury-retail-trends/‍https://www.startus-insights.com/innovators-guide/retail-industry-trends-innovation/‍‍

https://tblocks.com/articles/top-7-technology-trends-shaping-the-future-of-modern-retail/‍https://kodytechnolab.com/blog/top-technology-trends-in-retail-industry/ (good ref for tables)While we’ve talked about sustainability before, it’s worth mentioning again because it’s not going away.

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These innovations can drive you faster toward your business goals, especially in the fast-evolving age of AI.

Purposefully integrate a select few to help build and protect your digital organization while generating value.

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he rise of phygital commerce, frictionless delivery, mobile and social shopping, customer service chatbots, AI and hyper-personalization, or metaverse experiences, is intensifying technology adoption in the retail sector.

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