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Retail Outlook: Brick & Mortar Defies Odds, Surge Forecast For 2024

What's in store for retail in 2024? We analyze economists' forecasts, recent trends and the latest holiday sales data to look ahead at next year.

Alice Cresswell

Content Strategy Manager

A millennial born in the digital age, I grew up arrogantly thinking brick and mortar was on its last legs. Ecommerce was the way forward, and before we knew it, we’d be living in floating armchairs with everything we needed on a projected screen in front of us (think Wall-E).

Turns out, things don’t move so linearly. And while technology might evolve exactly as quickly as you expect, human nature doesn’t quite match up in rate of change. We don’t want to live isolated from others, married to a holographic screen, consuming limitlessly.

Maybe we don’t want mandated office days, but we do want to be in the office, around people, on our own terms. We want the option to shop online, but we also want to know we can head into the city to try those jeans on for size. We’ll make a day of it—see friends for coffee, go to the gym, or run some errands.

Over COVID, we hedged our bets on direct-to-consumer commerce. Big Tech like Amazon went all-in on hires during the pandemic, then made massive staff cuts when eCommerce transactions tapered off earlier than expected.

Retail giants also bet big on leisurewear—anticipating a pivot to work-from-home comfies to stick around. But it wasn’t long before they realized they’d over estimated demand. Shoppers reported seeing leisurewear littering Target shop floors, and sales abounded to move stock.

Looking ahead, what can we expect from 2024? More of the same, or a shift for the better?

 


 

Online Retail Sales: 2024 Outlook


2022 saw a contraction in online sales worldwide, but 2023 has been back to growth again—around 7%. Now, even with the possibility of recession still hanging thick in the air (will it happen? will it not?), the consumer appears to be resilient.

The Economist Intelligence Unit, EIU, is predicting online retail sales growth globally to head back into double-digit growth (10.5%).

But the US and Western Europe will still be playing catch up, with more sluggish single digit growth than the global average. We’ll be seeing profitability pressures continue to restrict growth in the DTC space, with investors seeking better returns.

 

Brick and Mortar Sales: 2024 Outlook


If you’ve been following retail news, you’ll have seen Kohl’s has been suffering in eCommerce sales. Following other big brands, Kohl’s has committed to modernizing its physical presence, as well as providing offers and promotions consistently across all channels.

Consumers want brick and mortar, but they’re voting with their wallets, demanding a slick, engaging experience. Think Mecca, IKEA, Apple and LEGO.

Where SMB and mid-market retail can provide a more personal touch, retail giants are under pressure to supplement a lack of personalization with expensive tech and impressive fitouts.

EIU forecasts that brick and mortar sales will make up a whopping 85% of total retail sales in 2024. The businesses that have made it through high interest rates and rising costs will enjoy recovering foot traffic and a sales boost.

“2024 will see the strongest pace of growth for offline retail since the post-pandemic rebound of 2021,” EIU predicts.

This trend will be global. Beyond Kohls, other large retailers like Nordstrom (US) and Primark (Ireland) are planning store expansion in the US in 2024.

 

Overall Outlook for Retail in 2024


While the online sales forecast is still overcast, the clouds are clearing and a growth surge is on the horizon for brick and mortar.

Black Friday / Cyber Monday 2023 proved that the consumer is ever-resilient. We also saw that loyal customers are a critical asset to retailers—brick and mortar in particular.

Marsello’s latest data shows around half of eCommerce shoppers were repeat customers, and half new shoppers.

For brick and mortar retailers, on the other hand, repeat customers made up 80% of BFCM sales. What's more, physical retailers grew their customer databases by around 22% over Black Friday in 2023.

Loyalty programs and customer marketing will play a huge part in boosting 2024 brick and mortar sales.

Yes, that’s a pitch to start a free trial of Marsello, connect your eCommerce and POS platforms, and start syncing the last few months’ worth of sales!

In 2024, it’s time to put all that data into motion… change is coming.

Start free trial

 


 

Read more: 7 Steps To Building A Profitable Loyalty & Rewards Program

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    What’s new for Marsello x Shopify retailers in 2022?

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    From Shopify Theme Extensions and Google reviews to a new and improved user experience, we wrap up the biggest changes to Marsello for Shopify users.

    Retailers need to know the tech they invest in will meet their needs and help their businesses grow while also adapting to current trends. In response to changing customer shopping trends, 2021 saw more retailers than ever move into the eCommerce space, and the importance of creating a cohesive shopping experience across in-store and online locations was highlighted again and again. To master this, retailers have needed faster websites, smarter tools, and better connectivity between their different store types.

    To meet the growing needs of omnichannel retailers, Shopify released several exciting changes in the last 12 months – from Themes 2.0 to Shopify Flow. To build on these additions and create more and more marketing opportunities for Marsello x Shopify retailers, we released several complementary features that are helping retailers make the most of their retail toolkit.

    Let’s dive in and discover Marsello’s latest features and biggest updates for Shopify users.

    What features has Marsello released for Shopify users?

     

    The last year saw the development of several stand-out features, and many of these were designed specifically for Shopify powered-retailers looking to grow their business with smart marketing. 

    Introducing Marsello’s  biggest releases of 2021 and a sneak peek of what’s to come very soon:


    Shopify Theme Extension – Product Recommendations:

    The announcement of Themes 2.0 at the Shopify Unite 2021 conference was a cause for a flurry of excitement. With some sources calling it Shopify’s biggest investment in their platform to date, Themes 2.0 opened up a world of opportunities for retailers looking to create their perfect online store, edit and customize themes, and prioritize user experience. 

    To meet the needs of fast-growing retailers who need smart, data-driven marketing tools, we developed a product recommendations extension for Shopify Themes 2.0 users. With this tool, users can add personalized product recommendations to their eCommerce store to encourage bigger cart sizes, improve customers’ online purchase experience, and help customers find products they’ll love.

    Product recommendations built into eCommerce store themes makes it easy to create a seamless experience for customers


    Marsello’s product recommendations are powered by our purpose-built, data-driven product recommendations engine that recommends products based on buyer behavior and purchase history. And the potential doesn’t stop with data-driven recommendations either. Retailers can also select specific products to implant into the recommendations block and encourage sales of specific products. 

    Learn more about our Shopify Theme extension – Product recommendations.

     

    Marketing Extensions:

    Shopify’s extensions feature allows merchants to integrate tools and apps into their Shopify admin almost as if they were in-built. There are countless options to choose from merchandising to stock management; however, none would allow you to create loyalty points campaigns designed to multiply customers’ loyalty points on purchases automatically – this is where Marsello’s Marketing Extension for Shopify comes in.

    Shopify Marketing Extensions users can now create points campaigns in their Shopify admin with the Marsello marketing extension, reducing steps to creating and managing loyalty points campaigns that boost customer loyalty. For example, to increase customers’ motivation to make purchases, you can easily create campaigns where customers earn double loyalty points during a set promotional period directly from the Shopify admin. 

    It's easy to create Marsello-powered loyalty points promotional campaigns directly from within the Shopify admin


    Loyalty points promotion campaigns are a great tool to help promote and encourage engagement with your store's loyalty program.  You not only give customers an extra reason to shop and increase their cart size, but points campaigns are a great alternative to running a sale or discount and help your customers to feel appreciated and respected.


    Marsello’s Shopify Flow connector:

    2021 was a big year for marketing automation – in fact, one study found that 51% of companies were reportedly moved to or were already using marketing automation in some way by 2021. This increased demand for automated marketing capabilities saw the perfect opportunity for Shopify to release Shopify Flows for their Shopify Plus users - in our opinion, one of the most exciting features released in 2021. 

    To help Shopify Flow users tie their loyalty program to customer activities, we released a Shopify Flow connector designed to augment the potential for loyalty marketing. Customers can now earn loyalty points for actions like leaving Google or social media reviews, purchasing specific products, or even purchasing at a particular store location through carefully crafted flows and triggers. 

    Give points and tag a customer directly after an order is fulfilled with Marsello & Shopify Flow


    Learn more about Marsello’s Shopify Flows connector in our launch blog.


    Learn more


    Google Reviews:

    Do you request Google Business reviews from your customers? Do you manage and respond to the reviews left about your business? 

    Google Reviews are integral to helping business owners improve their Google ranking and appear higher in search results, which, in turn, plays a huge role in influencing customers’ purchasing decisions.

    To help you collect, manage and respond to reviews, we’ve developed a Marsello-powered Google Reviews marketing feature. A soon-to-be-released addition to the Marsello toolkit, consider this your sneak preview into our latest tool for retailers who want to increase their presence through local SEO and Google recommendations. 

    The Google Reviews feature from Marsello make managing and acquiring new Google Reviews easy

    Marsello’s Google Reviews feature will make it easy to automate the review process and create a consistent flow of quality reviews that increase online visibility and help to acquire new customers. 

    With email and SMS automations built into your Marsello admin, it’s easy to promote and generate Google reviews as soon as a customer makes a purchase (when their experience is fresh in their minds). You can then easily track, manage and respond to reviews directly from your Marsello admin. Subscribe to our blog and emails to stay up to date with each new release as it happens.

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    What’s changed for the Marsello platform?

    One of Marsello’s biggest updates within the last year has been to implement a new look and feel for our existing app. Since June 2021, we’ve been launching a variety of improvements to the Marsello admin to save you time and make your life easier. With a cleaner design and faster tech, new-look Marsello will now launch universally in April 2022, and we can’t wait to hear what you think.

    New Look Marsello provides a faster, more responsive user experience.

    Can't wait? Get access to new-look Marsello now. 

    Try New-look Marsello

     

    How can Shopify merchants make the most of their Marsello marketing?

     

    Hopefully, you're familiar with Marsello’s core features. If not, let’s recap quickly with just a few bullet points:

        • Customer loyalty marketing – use a branded loyalty program, automated notification emails, varied reward types, and achievable earn options to garner customer support and engagement. And you can build customer relationships that span a lifetime with VIP tiers that segment your loyal customers based on their purchase history. Learn more here.  

        • Marketing automationdelight customers by communicating with them how they’d prefer. With Marsello’s email & SMS campaigns, you can create one-off campaigns from scratch or choose from a library of professionally designed email campaigns developed to get results. And once you’ve sent your campaigns, it’s easy to monitor their success, create new campaigns, or even boost your original with a new subject line for those who didn’t open the first. Learn more here.  
        • Email & SMS campaigns – delight customers by communicating with them in the way they’d prefer. With Marsello’s email & SMS campaigns, you can create one-off campaigns from scratch, or you can choose from a library of professionally designed email campaigns developed to get results. And once you’ve sent your campaigns, it’s easy to monitor their success, create new campaigns, or even boost your original with a new subject line for those who didn’t open the first. Learn more here

        • Marketing listsUse forms, landing pages, and marketing opt-ins to grow your customer database and your return on investment. You create marketing opportunities with new customers by capturing customer information at your POS and eCommerce site. Marsello also automatically segments your customers based on their shopping history, making it easy for you to leverage your customer database and target specific customer groups through email, SMS, or even Facebook ad targeting. Learn more here.  

        • Feedback surveys – Gather customer feedback to understand their shopping experiences and create memorable shopping experiences that they adore. By adding feedback surveys to your communications (for example, a points-earned email that is sent when a customer has just made a purchase), you get confidential, real-time insight into what it’s like to shop at your store. Monitor your growth, see how your business improves, and celebrate your success by measuring customer satisfaction and feedback. Learn more here

    And Marsello has much more to offer our Shopify users too – just think of the combination of possibilities! What if you were to create a custom Shopify Flow that rewarded your customers with loyalty points when they leave a 4-5 star review? Or, if customers shopped during an annual secret sale, you could reward points to purchases over a set price! Get creative and start delighting your customers in all-new ways with all new experiences. 


    Get in touch with our team to learn about Marsello’s full product offering for Shopify.

    Get in contact

    Final words


    The last two years have seen tremendous growth for retail and eCommerce technologies – and that growth doesn't seem to be slowing down. That's why meeting the growing needs of retailers in the retail and eCommerce market is at the forefront of platform and tech providers like Shopify (and Marsello). 

    To help our Shopify-powered retailers achieve their goals, grow their business, and stay ahead of the competition, we needed to continue to innovate with Shopify's product offering in mind. And we don't plan on stopping in 2022. 

    From automated campaigns and complete customization to set-and-forget style flows and fully integrated customer loyalty programs, the future is looking bright for Marsello x Shopify retailers. Book a demo today to grow your business with Marsello.

    Book a demo

     

    How to master loyalty automation with Marsello's Shopify Flow connection

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    Learn how to automate custom loyalty rewards and encourage customer engagement by enabling Marsello’s Shopify Flow connection.

    Create automated loyalty rewards that encourage customer engagement no matter how they engage with your store by enabling Marsello’s Shopify Flow connection. In this blog, we learn a little about the Shopify Flow platform and how you can pair it with your Marsello-powered loyalty to get creative and reward customers for all kinds of actions.

    First, let’s understand what Shopify Flow is and how it works.


    What is Shopify Flow?


    Exclusive to Shopify Plus merchants, Shopify Flow is an automation platform that connects to your eCommerce (and other third-party services) and allows you to automate just about anything that could be a trackable event. 

    The possibilities for intelligent, automated retail are a game-changer – from tagging and flagging customers and orders, to rewarding customers with loyalty points for just about any action (for example, exclusive rewards for customers who leave 4 or 5 star Google reviews). 

    To access Shopify Flow, you’ll need to get the app from the Shopify App Store.

    And to make sure you have a complete understanding of the possibilities that Shopify Flow offers, there are countless resources available. From downloadable workflows and examples to imports for your store, Shopify has you covered. Check out these resources below to get started: 

      1. A selection of examples from the Shopify Flow reference manual
      2. 14 top workflows blog post

    Check out this video from the Shopify team about the Shopify Flow platform and how it can become your new secret weapon.

     

     


    How can Shopify Plus merchants use Shopify Flow to automate and track their Marsello marketing?

     

    Shopify-Flows-1

     

    Let’s delve deeper into what a Marsello connection for Shopify Flow means and how you can pair the two platforms to boost customer loyalty by rewarding loyalty with all new triggers.

    As we mentioned, one of the ways that retailers could use Shopify Flow is to reward high-value customers who leave 4 or 5 star Google reviews. And rewarding Google Business Reviews is just one example of how you could make the most of Marsello’s Shopify Flow connection.

    And when you’ve created your new flows, you can track the success of each flow – helping you to create automations that reap more and more benefits as your business grows.

    Learn how to create custom automated flows with Marsello’s Shopify Flow connection in our help center.

    And remember, while Shopify Flow is only available to Shopify Plus retailers, Marsello’s Customer Loyalty feature still uses built-in automated points earn options triggered by events like completed purchases, birthdays, and social media interactions. The Marsello loyalty feature is also available to all Marsello Pro users, and the automation doesn’t stop there.

    Do you know about Marsello’s Marketing Automation feature?

     


    Final words


    Shopify Flow opens up exciting new automation possibilities for Shopify Plus merchants – and with Marsello’s Shopify Flow connector, this now includes rewarding customers for their loyalty no matter the interaction. 

    Retailers are now able to automate processes like stock orders, product tagging, and (with the help of Marsello’s connector) rewarding customers with loyalty points for a variety of interactions. And as each Flow is created and used, retailers can track their success and adapt their automations to encourage more and more customer interaction. 

    Curious about Marsello and how it works with Shopify Flows? Get in touch with our team today.

    Book a demo

    Marsello is officially a certified Shopify Plus App Partner

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    Marsello has been selected to join the Shopify Plus Certified App Partner Program. What does this new partnership mean for Marsello retailers?

    Woman using at IPad from behind a shop counter with purple and blue marsello brand colours bordering the image.

     

    The retail environment has changed rapidly in the last 18 months. The demand for responsive, powerful software has grown almost as rapidly as the eCommerce and retail industries themselves – and as a result, software providers also needed to evolve to ensure they meet the requirements of growing brands and enterprise retailers. 

     

    To meet the needs of these retailers, Shopify created Shopify Plus and its coveted Shopify Plus Certified App Partner program. Shopify Plus’ partner program is open to apps that are shoulder tapped because they have proven that they can meet the complex needs of larger retailers. To be specific, Shopify Plus Certified App Partners must offer retailers the highest “performance, security, privacy, and support” – in fact, of the 6000 or so apps on the Shopify Marketplace, only 60 are Shopify Plus certified. 


    We’re proud to announce that Marsello has been selected to join the Shopify Plus Certified App Partner Program and is the only certified marketing app that integrates both in-store and online whether a retailer uses Lightspeed POS, Shopify POS, or Window-based legacy software.

     

    Quicklinks:

    What sets Shopify Plus apart

     

    While Shopify has been a household name in the retail sphere for quite some time, Shopify Plus is home to the eCommerce and POS provider’s largest retailers. And it’s a non-negotiable that these enterprise-level businesses have confident access to apps that are proven to support their continued growth. 


    Shopify Plus provides high-growth retailers with solutions that help them develop and scale with confidence and ease. From (vastly) improved online traffic management and full eCommerce store customization capabilities, to multichannel integration, emphasis on user experience and site speed, and an approved app program (the Shopify Plus Certified App Program), Shopify Plus retailers are equipped with all the tools to see rapid and continued success.

     

     

    What is the Shopify Plus Certified Apps Program

     

    Shopify’s marketplace is bursting with apps that are all vying for retailers’ attention. While having plenty of options is a powerful position to be in, retailers don’t often have time to test all the available options and make a well-researched decision. This is especially true for big retailers who are beyond the stage of experimenting. As they cater to some of the biggest and best retailers, Shopify Plus needs to be able to provide these retailers with app recommendations that meet certain standards. This is where the Certified App Program comes into play.

    The Certified App Program essentially vets their best-performing Shopify partner apps within certain categories. We are proud to say Marsello has met Shopify Plus’ partnership requirements, offering Shopify Plus retailers the only true omnichannel marketing app.

     

     

    Marsello: the only retail marketing Shopify Plus App Partner that integrates in-store and online for retailers using Windows POS

     

    So what does Marsello offer Shopify Plus retailers? That’s easy! Marsello’s ability to integrate in-store and online means that Shopify Plus retailers can attribute each and every customer interaction to their marketing efforts, no matter where that interaction occurs.

    With last-touch attribution, industry-leading marketing tools (from email and SMS campaigns to loyalty marketing and automated flows), Marsello is built to help retailers big and small achieve great things with their marketing. In fact, Marsello retailers see an average of 98x return on investment!

     

     

    "The Shopify Plus Certified App program is designed to meet the advanced requirements of the world's fastest-growing brands," said Mark Bergen, VP Revenue. "We're happy to welcome Marsello to the program, bringing their insight and experience in Marketing Automation as well as Loyalty & Rewards to the Plus merchant community."

    How Marsello became a Shopify Plus certified partner

     

    Shopify Plus requires that any partner app that wishes to become certified must meet a baseline of the following requirements:

    • Support: 24/7 access to app partner support
    • Security and privacy: Trusted and secure information and data handling
    • Performance: Advanced app performance and integration standards.

    At the end of the day, Shopify Plus Certified App Partners must have a proven successful history of working with Shopify Plus retailers, while also ensuring the ability to continue this success with any other Shopify Plus merchants who may wish to use the app in the future. Marsello’s mission has always been to empower retailers to create stand-out marketing that supports their business at every step of the way, on every sales channel. Becoming a Shopify Plus Certified App Partner allows us to ensure we’re offering the highest quality product and experience while supporting all of our retailers to grow, scale, succeed and sell more!

     

     

    "The Shopify Plus Certified App program is designed to meet the advanced requirements of the world's fastest-growing brands," said Mark Bergen, VP Revenue. "Marsello's accreditation in becoming a Shopify Plus Certified App Partner is a testament to the hard work we've put into the partnership over the years. As the first New Zealand-based app to become a Shopify Plus partner, we are excited to play a part in helping omnichannel retailers scale their businesses." – Brent Spicer, CEO at Marsello

     

     

    Marsello x Shopify Plus retailers making the most of their marketing

     

    Let’s take a look at how some Shopify Plus retailers are already using Marsello to make the most of their marketing. 

     

     

    International swimwear sensation, Triangl, sees 5182x ROI with Marsello

    An email marketing campaign from Triangl overlaid on a photo of turquoise blue oceans.

     

     

    Triangl found international success selling a color-blocked neoprene bikini that took beaches worldwide by storm. From celebrity endorsements and rapid growth to scaling beyond eCommerce and staying ahead of the fast-paced fashion world, Triangl needs total confidence in any tool they add to their kit, and consistency in their email marketing is no different.

     

    "The increase in our results was also driven by improving our Welcome Email Series where the content seeks to build community, encourage user-generated content, showcase new arrivals, engage customers in upcoming releases, and get involved in our Travels via the Blog."

     

     

    Triangl’s focus on consistency and customer experience has helped them to curate a loyal following of customers that love to engage with their content. And by integrating their email marketing with both their eCommerce and brick-and-mortar stores, the stand-out swimwear brand are making the most of every customer interaction. In fact, Triangl aren’t just seeing results, they’re seeing remarkable growth – 5182x return on investment with Marsello to be exact.

    Learn how Triangl uses Marsello to power email marketing that compliments their brand and delights their customers.

     

     

    Cosmetics & Fragrance Direct’s omnichannel marketing creates a consistent customer experience

     

    Marsello-Loyalty-Cosmetics-and-fragrance-direct-banner

     

    Cosmetics & Fragrance Direct, an Australian beauty stockist, are experts in curating ‘flow’ between their in-store experience and online stores. Recognizable branding and consistent messaging go a long way in customer experience. Cosmetics & Fragrance Direct knows this and has been careful to ensure that the customer experience of transitioning from in-store to online to engaging with marketing efforts feels seamless, effortless, and recognizable. 

     

    With Marsello, they can rest easy knowing that every customer interaction is accurately tracked and organized within their marketing funnel thanks to last-touch attribution reporting and seamless omnichannel integrating with their Shopify Plus eCommerce site and their Lightspeed POS sites. The TL;DR? Cosmetics & Fragrance Direct knows that their marketing goes out to the right customer, with the right message, at the right time because they have ensured that their marketing integrates with all their sales channels. And with 17x ROI just from their one-off email marketing campaigns alone, the team behind Cosmetics & Fragrance direct also knows that their marketing efforts are reaping the benefits.

     

    Read about Cosmetics & Fragrance Direct’s omnichannel marketing success.

     

     

    Final words 

     

    Marsello’s approval as a Shopify Plus Certified App Partner cements our continued commitment to retailer growth and development, as well as our dedication to our partnership with Shopify Plus. We continue to push the envelope for what retailers can expect from their marketing applications and we’re excited for what this certification means for our work with current Marsello retailers as well as future users. 

     

    Retail marketing is a fast-growing, fast-paced environment and we thrive on challenging ourselves to continually provide a platform that meets retailers’ primary marketing needs while also going above and beyond with customer service, experience, product development, and integration possibilities. We excitedly welcome the future of true omnichannel retail.

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