With shrinking margins, economic uncertainty, and growing cyber risks from automated threats, retailers face continued challenges in 2023. Becoming proficient at navigating these obstacles is key to protecting retail profits. This article reveals effective strategies to safeguard brands’ customers, reputation and revenue moving forward.
Inflation and the Incredible Shrinking Margin
2022 saw the fastest pace for inflation in decades. As consumers faced higher prices at the gas pump, grocery stores and other places, many cut back on their spending, increasing the competition among retailers. This was especially evident on Black Friday, when many merchants offered steep markdowns to compete. As a result of inflation, fierce competition, excess inventory and changes in consumer behavior, retail profit margins shrunk.
