2023: A Look Back
Retail is poised to finish strong in 2023, with optimism heading into the new year. Third-quarter sales were up, and the fourth-quarter holiday shopping season will go out with a bang.
- $1.8 trillion total U.S. retail sales, Q3 2023 up 2.3% YoY
- $284.1 billion U.S. eCommerce sales, Q3 2023 up 7.6% Y0Y
- 15.6% eComm % of total sales (Source: U.S. Census Bureau)
Online shopping is the retail industry gift that keeps on giving. Leading brands and retailers are keeping both online and in-store shopping experiences fresh, with ever-tighter collaboration with their manufacturing, supply chain and technology partners.
The world’s largest, Walmart, reported Q3 eCommerce sales up 15 percent globally and 24 percent in the United States, with overall sales up 5.2 percent. President and CEO Doug McMillon had plenty of good news to share in the retailer’s earnings report. The retail is offering “great prices on fashion, toys, electronics and seasonal decorations,” said Doug McMillon, Walmart president and CEO.
“Looking ahead, our inventory is in good shape, the teams are focused, and our associates are ready to serve our customers and members whenever and however they want to be served,” he said.
Successful 2023 Strategies for Brands and Retailers
Supply Chain Digitalization, Visibility & ESG
Environmental, social and governance (ESG) initiatives were a clear focus in 2023. Companies invested in process improvement and technology solutions to gain a clearer view farther into their supply chains, while at the same time picking up speed to market and streamlining workflows. Centralized, cloud-based systems like BlueCherry® eliminate redundant data entry, reduce reliance on spreadsheets and break down operational silos.
This year fashion brands, retailers and manufactures honed their:
- Tracking and traceability
- Supply chain mapping
- Chain-of-custody documentation
Current and pending ESG-related laws and customer requirements were major drivers. However, consumer preference for sustainable products will keep ESG goals in the cross hairs in 2024 and beyond.
- $68 Trillion: Millennial (GenY) and Gen Z purchasing power by 2030
- 15% Gen Y/Gen Z more likely to spend on brands rated high for humanity
- 30% Gen Y/Gen Z more likely to buy brands rated high for transparency (Harvard Business Review)
- 61% Shoppers environmentally aware in furniture and décor choices
- 66% Want to make more sustainable home furniture purchases (SWNS Digital)
- $556.3 Billion sustainable home décor sales est. by 2031 at 5.5% CAGR (Estatenvy)
Greater Efficiency for Lean Inventory & Costs
Successful brands are reporting healthy inventory levels, and they are controlling costs. They are striking the right balance between direct-to-consumer and wholesale business. “Our inventory levels are down significantly, and our gross margin was strong at 52.9 percent, reflecting favorable pricing, a higher mix of direct-to-consumer sales and lower unit costs,” said Sketchers COO David Weinberg in the brand’s Q3 2023 earnings announcement.
These operational strengths support innovative product collaborations with Snoop Dog, Martha Stewart and multiple sports starts. “We believe our constant innovation to meet the needs of consumers from all walks of life — including professional athletes, and our impactful marketing will drive our success for years to come,” said Sketchers CEO Robert Greenberg.
Automation for Fulfillment Agility
Brands who delivered the goods precisely as promised to consumers and retail customers — across channels and fulfillment modes — were winners in 2023. For industry standouts, improved warehouse and logistics efficiency mattered. Digitalization of upstream business processes, from design to product development to sourcing, further enhanced their competitiveness.
Ralph Lauren Corp. reported sales and profits up for its latest quarter. The company has what it calls a “fortress foundation” supporting its success, defined through five key enablers, including:
- People and culture
- Best-in-class digital technology and analytics
- Superior operational capabilities
- Powerful balance sheet
- Leadership in citizenship and sustainability
CGS BlueCherry® 2023 Content Available
If you missed a 2023 CGS BlueCherry® blog, webinar or report, they are all available in our online Resources library. Here are a few at your fingertips.
On-Demand Webinars
Unlocking Success — How Innovative Manufacturers Thrive with Digital Manufacturing: Industry leaders share their remarkable journeys of digital transformation, providing valuable insights into how implementing BlueCherry® Shop Floor Control played a pivotal role in safeguarding their businesses and seizing growth opportunities.
Partner to Transform the Factory Floor: Learn how the CGS and Inspectorio partnership delivers real-time visibility to floor-level production and quality control. This integrated technology gives brands and retailers valuable supply chain insights while manufacturers retain control of their operations and data.
Thought Leadership Series: This five-part series delves into important technology trends, including generative AI, emerging technologies, cybersecurity and supply chain solutions.
eBooks and Reports
3 Steps to Build Home Goods Market Share: This eBook dives into home fashions industry eCommerce growth and omnichannel opportunities; retailer priorities and requirements; sustainability/ESG; and speed to market.
2023 Supply Chain Technology and Trends Annual Report: Get insights on supply chain visibility, digital transformation, eCommerce, cost reduction and sustainability. This report provides results from a survey of 360 industry executives.
Case Studies and Blogs
How Retail Analytics Are Changing the Industry: This blog discusses data analytics in the retail industry. Analytics and business intelligence solutions are changing how businesses operate. Learn how retailers see value in gathering information about customer experiences, inventory, supply chain and other business functions to make better decisions.
Dignity Apparel Case Study: This video highlights Dignity Apparel’s game-changing investment in shop floor control technology. See how this American apparel manufacturer has improved workflow, boosted employee productivity and gained invaluable operational insights.
Apparel Manufacturers Thrive with Digital Transformation — Industry Leaders Share Their DX Journeys: This blog discusses digital transformation (DX), sometimes called Smart Manufacturing, with insights from leaders of three apparel manufacturing businesses.
Footwear Trends and Opportunities: This blog takes a look at successful business processes and technology strategies of the footwear industry’s established brands and up-and-coming stars.
ESG — From Supply Chain Mapping to Sustainability: This three-part blog series covers why ESG is such a major priority for retailers, brands and their supply chains. It discusses solutions to automate ESG processes to ensure compliance and consumer trust.
That’s our look back on key trends of 2023. Stay tuned for our 2024 outlook. As always, we invite you to Contact Us to discuss your business objectives and how we can partner with your company to achieve your goals.