Global Retail Industry Market - 2024 - 2031

Report Overview

Global Retail Industry Market reached US$ 28,680.3 billion in 2023 and is expected to reach US$ 51,554.7 billion by 2031, growing with a CAGR of 7.7% during the forecast period 2024-2031.

The retail sector is undergoing a major transformation, driven by technological advancements and shifting consumer preferences. The rise of omnichannel retailing is central to this shift, integrating physical stores, e-commerce and mobile platforms to offer seamless, personalized shopping experiences. Retailers are utilizing advanced data and technology to ensure consistent engagement across all channels, enhancing customer loyalty through tailored services.

Technological integration is driving retail transformation, with AI and machine learning central to this shift. The technologies provide predictive insights by analyzing extensive data, thus refining inventory management, marketing strategies and customer experiences. AI-driven personalization enhances engagement by recommending products based on individual purchasing and browsing history. Additionally, the rise of mobile commerce necessitates investments in mobile-optimized solutions and location-based marketing to cater to consumers' preferences for smartphone transactions.

Key trends from the June 2023 RCC STORE Conference in Toronto highlight a significant industry shift towards e-commerce and omnichannel strategies, alongside the adoption of advanced technologies such as AI, AR and VR. Retailers are increasingly utilizing data analytics to offer personalized shopping experiences while addressing the rising demand for sustainability and ethical practices. The influence of Gen Z is driving the need for a balance between digital innovation and distinctive in-store experiences.

Market Trends

Rising Popularity of E-commerce and Hybrid Experiences

E-commerce has surged dramatically, largely fueled by evolving consumer demands for convenience and accessibility. The COVID-19 pandemic has expedited this shift, driving increased online transactions. Technological innovations, including mobile apps and advanced data analytics, have optimized the digital shopping experience through personalized recommendations and efficient processes. Additionally, e-commerce platforms enable businesses to overcome geographical constraints, facilitating access to global markets.

The growing reliance on mobile devices for shopping has led to a surge in mobile commerce (m-commerce). Retailers are optimizing their websites and apps for mobile use, focusing on streamlining the shopping experience on smaller screens. Features such as mobile payments, mobile-first promotions and location-based marketing are becoming crucial for capitalizing on this trend.

The integration of shopping capabilities into social media platforms has introduced a new frontier in retail. Social commerce leverages platforms like Instagram, TikTok and Facebook to allow users to discover and purchase products directly within the app. The trend has blurred the lines between social interaction and shopping, providing retailers with direct access to engaged audiences and a new revenue stream.

The Buy Online, Pick Up In-Store (BOPIS) model is gaining traction as consumers seek convenient and flexible shopping options. The approach allows customers to make purchases online and pick them up at a nearby store, combining the benefits of e-commerce and brick-and-mortar retail. BOPIS also helps retailers optimize inventory management by utilizing in-store stock to fulfill online orders.

Growing Demand for Sustainability and Ethical Consumerism

The growing focus on sustainability and ethical practices reflects shifting consumer priorities, with increased awareness of environmental and social impacts influencing purchasing decisions. Retailers are adapting by integrating sustainable operations, such as minimizing carbon footprints and sourcing ethically produced goods. The alignment with consumer values not only enhances customer loyalty but also opens new market opportunities as demand for sustainable products rises.

As traditional retail faces disruptions such as store closures and digital competition, sustainable retail has become a key differentiator. The approach, which emphasizes eco-friendly materials and fair trade, aligns with rising consumer demand driven by climate change awareness. Data shows that 71% of executives prioritize sustainability and 44% of consumers favor brands committed to these principles.

Despite recent economic challenges, the sustainable retail sector demonstrates resilience, marked by substantial investments in eco-friendly packaging and enhanced transparency. Retailers aligning with these sustainability trends not only meet evolving consumer expectations but also achieve operational efficiencies and foster brand loyalty. By embracing sustainable practices, retailers can secure a competitive advantage in the evolving market landscape, ensuring long-term success and growth.

Supply Chain Disruptions

Supply chain disruptions have significantly impacted the retail sector, manifesting through severe logistical bottlenecks, increased costs and operational constraints. The global supply chain, plagued by port congestion, trucker shortages and unforeseen events such as the Suez Canal blockage, has led to substantial delays and elevated shipping costs, eroding profit margins and causing stock shortages.

Labor shortages have further strained retail operations, forcing many retailers to reduce store hours and face increased labor expenses. These adjustments have added to operational challenges and heightened costs, affecting overall efficiency. Retailers are grappling with the dual pressures of managing increased costs and maintaining service levels, impacting their ability to deliver consistent customer experiences.

To enhance resilience, retailers must leverage advanced forecasting tools for real-time adjustments, integrate internal and external data for comprehensive visibility, foster collaborative relationships with stakeholders and adopt technology for supply chain optimization. These strategies will enable retailers to navigate disruptions effectively, maintain operational efficiency and sustain competitive advantage in an increasingly volatile market environment.

Market Segment Analysis

The global retail industry market is segmented based on product, sector, distribution channel and region.

The Surging Demand for Food and Grocery Products

The grocery industry has experienced a notable shift in the demand dynamics for food and grocery products, reflecting broader economic and consumer behavior trends. Post-pandemic, the sector has seen a substantial surge in demand for food and grocery products, driven by evolving consumer preferences and market adjustments.

The COVID-19 pandemic initially spiked demand and profit margins, but these have now reverted to pre-pandemic levels. The latest report from The Food Industry Association (FMI) highlights a decline in same-store sales growth and profit margins, with only 38% of food retailers anticipating sales growth in 2024 and a mere 13% expecting net profit increases. The regression is attributed to a combination of factors, including inflationary pressures and increased operational costs.

The competitive environment has intensified, with supercenters and alternative retail formats such as club stores and e-tailers gaining traction. Despite improvements in supply chain issues and employee retention, supermarkets are contending with challenges such as societal concerns, theft and rising healthcare costs. As a response, retailers are investing in promotional spending, private brands and expanding fresh departments to attract and retain customers.

Market Geographical Share

Rising Demand for Retail Industry in North America

The North American retail industry is currently experiencing a transformative phase driven by several key factors. The shift is characterized by evolving customer behaviors, increased price sensitivity due to inflation and the ongoing impacts of global conflicts. As a result, retailers are navigating a complex landscape that demands agility and innovation to stay competitive. A significant trend in North American retail is the growing emphasis on enhancing customer experience.

Approximately 80% of industry leaders are prioritizing investments aimed at improving the shopping journey rather than focusing solely on customer acquisition. As per Trading Economics in July 2024, the North American retail industry experienced a robust surge in sales, with a notable 1% increase month-over-month, surpassing forecasts of a 0.3% gain and marking the most significant growth since January 2023. The performance is largely driven by substantial gains in motor vehicle and parts dealerships, which saw a 3.6% rise, alongside a 1.6% increase in electronics and appliance stores.

Market Competitive Landscape

The major global players in the market include Walmart, Costco Wholesale Corporation, Amazon.com, Inc., Kroger Co., Home Depot, Target Brands, Inc., Walgreens Boots Alliance, Inc., ALDI, Best Buy and MagSon.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict has profoundly disrupted the global retail sector, particularly by impeding supply chains and escalating operational costs. Critical raw materials and commodities, such as wheat and sunflower oil, have faced substantial supply interruptions, while transportation and logistics have suffered severe setbacks. The disruptions have led to increased shipping costs and delays, driving up goods prices and exacerbating inflationary pressures. Consequently, retailers are experiencing heightened financial strain and diminished profitability.

Economic uncertainties and rising prices, driven by ongoing conflicts, have significantly altered consumer behavior. Retailers are witnessing a reduction in discretionary spending as consumers prioritize essential goods and energy-efficient products. The shift has prompted retailers to diversify their supply chains and adjust strategies to mitigate associated risks. The conflict's ramifications are particularly pronounced in European markets, where retailers face challenges due to their reliance on disrupted supply lines.

By Product

Apparel & Footwear

Food and Grocery Products

Health & Beauty

Electronics

Furniture

Toys

Pet Care

Others

By Sector

Organized

Unorganized

By Distribution Channel

Supermarkets/Hypermarkets

Specialty Stores

Department Store

Convenience Stores

E-Commerce

Others

By Region

North America

US

Canada

Mexico

Europe

Germany

UK

France

Italy

Spain

Rest of Europe

South America

Brazil

Argentina

Rest of South America

Asia-Pacific

China

India

Japan

Australia

Rest of Asia-Pacific

Middle East and Africa

Key Developments

In June 2024, Reliance Retail launched a pilot program in select areas of Mumbai and Navi Mumbai for the instant delivery of groceries and fast-moving consumer goods (FMCG). The new service, offered through the JioMart mobile app, aims to reduce delivery times from up to 12 hours (and occasionally up to 3 days) to 30-45 minutes as it scales and integrates more stores.

In June 2023, Amazon introduced its "Global Store" in India, following similar launches in China and Mexico. The new feature allows Indian consumers to purchase products from Amazon's US website and pay in local currency. The initiative aims to enhance Amazon's competitiveness in India's burgeoning e-commerce market, where it faces strong competition from local players like Flipkart.

Why Purchase the Report?

To visualize the global retail industry market segmentation based on product, sector, distribution channel and region as well as understand key commercial assets and players.

Identify commercial opportunities by analyzing trends and co-development.

Excel data sheet with numerous data points of the retail industry market-level with all segments.

PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.

Product mapping available as Excel consisting of key products of all the major players.

The global Retail Industry market report would provide approximately 62 tables, 60 figures and 219 Pages.

Target Audience 2024

Manufacturers/ Buyers

Industry Investors/Investment Bankers

Research Professionals

Emerging Companies