US retail market forecast for 2023! These four major events are worth paying attention to

It is learned that with the arrival of 2023, eMarketer released its latest forecast for the US retail market in 2023, summarizing four trends that are likely to occur this year, including increased discount activities and the rise of AR shopping.

More Prime Day-style events

Amazon held two Prime Day promotions in 2022, but both were affected by inflation. According to Klover, spending on Amazon's October Prime Day event was 40% lower than the July event, and 35% of Prime Day consumers spent less than the previous year.

eMarketer predicts that Amazon's e-commerce sales will decline further in 2023, and its advertising revenue growth will slow from 20.4% in 2022 to 18.8% in 2023.

Analyst Andrew Lipsman believes that more Prime Day events will help counter the slowdown in e-commerce sales and advertising. Amazon's economists said in a November 2022 report that there is a 30% chance of a U.S. recession in the next six months.

It's not just Amazon that's using big sales events to boost sales, Walmart and Target have also held similar events, and many retailers are likely to hold more promotions as inflation affects purchasing decisions.

In-store shopping is back, but it’s changing

After two years of e-commerce dominance, in-store shopping is making a comeback. Expect more DTC brand retailers to invest in physical stores this year, just as Warby Parker and Allbirds did in 2022.

The coming year will see retailers rethink the in-store experience. Major department stores like Macy’s and Bloomingdale’s will continue to move away from large, mall-centric stores toward smaller stores in more convenient locations that double as distribution centers.

The resale market may see explosive growth

The resale market will continue to grow in 2023, perhaps more importantly as consumers look to earn income from selling used items.

According to OfferUp, 93% of Americans say inflation influences their decision to buy or sell used items. Meanwhile, only 21% say reducing their carbon footprint is the top reason for engaging in a used sale.

The secondhand clothing market will contribute much of this growth, thanks in part to online platforms like thredUP and Poshmark. Resale’s e-commerce expansion will continue this year as companies like Shein and Goodwill invest in online marketplaces.

The U.S. fashion digital resale market is estimated to reach nearly $20 billion in sales this year and continue to grow at a double-digit rate through 2025.

2023 is the year of AR

If 2022 was the year of the metaverse hype, then 2023 will be the year of AR. To participate in AR shopping, consumers don’t necessarily need to buy an expensive headset like they do when buying virtual reality (VR). For the 91% of US internet users who shop via mobile phones, AR is already within reach.

According to the survey, only 13% of U.S. adults say they have used AR or VR when shopping, but growth should accelerate as the technology improves.

Retailers are trying to reduce returns, which result in billions of dollars in lost revenue. Adopting AR fitting rooms can help reduce the frequency of customer returns. While mass adoption of VR alternative worlds is still far in the future, retail AR is already here.

Editor✎ Ashley/

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