How Retailers Are Battling Slowing Sales Growth And Tightening Margins

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How Retailers Are Battling Slowing Sales Growth And Tightening Margins
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Retail sales growth in the US has been gradually decelerating since the fourth quarter of 2022 as consumers battle high levels of inflation, reduced savings rates and ...

since the fourth quarter of 2022 as consumers battle high levels of inflation, reduced savings rates and rising interest rates. In our newly published report, 2023 Retail Competition Tracker, US, we examine offline and online sales growth at 65 leading US retailers. We found that average profit margins declined in 2022 across the majority of the 65 retailers that we track.

Between 2019 and 2022, 23 of the retailers we track have reduced a total of 42 million square feet of retail selling space. Retailers are making the most out of their reduced footprint — prioritizing better locations, emphasizing smarter layouts, and focusing on optimal product assortment.Retailers have expanded their role beyond simply being transactional by building unique experiences to drive emotional connections with consumers.

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