Retailers Face Mounting Pressures as Inflation Erodes Margins and Theft Rises
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Inflation continues to outpace retail sales growth, squeezing already thin margins. Consumers may have hit their limit as savings dwindle and credit card delinquencies rise.
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AI hype around personalized storefronts and shopper "digital twins" is outpacing reality. Retail tech adoption tends to lag due to razor thin margins.
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Retail theft is rising globally. Governments are responding with increased use of technology like facial recognition and restrictions for repeat offenders.
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Specialty retailers like Wow Bao are still experimenting with NFT loyalty programs and metaverse experiences, while giants like Tesco, Ahold Delhaize, and Woolworths launch a $25 million global venture fund.
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Private label credit cards, which provide crucial revenue for department stores, will be impacted by new federal caps on late fees. This could accelerate their decline amidst rising BNPL options.