Retailers are facing higher commodity prices and resulting price increases across most product categories. While sales are up, most of the gains are inflation-driven versus actual volume. Demand is flat or decreasing for traditional retail commerce. In fact, with revenue growth expected to be 5% while inflation estimated at 6.4% in 2023, retailers are expected to see profit margins narrow.
With this challenging business climate, retailers are devising new business models and executing strategies to diversify their revenue.