Levin Management Corp.‘s annual Mid-Year Retail Sentiment Survey showed that nearly 40% of the retail store managers responding to the poll reported making new tech investments this year, reflecting a push to strengthen marketing initiatives and improve customer service.
“Retailers are working to shape shopping experiences to meet consumers’ wants and needs, and to reach potential clients through diverse channels,” Matthew Harding, LMC’s CEO, said. “As technology becomes increasingly sophisticated, retailers are finding — and embracing —its value on both fronts.”
More than half (55.3%) of LMC survey respondents are actively employing technology to analyze customer and/or sales data for the purpose of merchandising, creating services/menu options, planning in-location events or creating individualized special offers. For the first time, LMC asked these tech-employing retailers whether artificial intelligence is part of their tech toolbox. Approximately 12% of survey participants are already using AI in some form, while nearly 21% are currently exploring how AI could potentially aid their businesses.
“AI is one of the hottest topics in the business world today, and this industry is no exception,” Harding said. “While the conversation is in its early stages, there is no doubt the use of predictive AI and other analytical tools will have a monumental impact on retail decision-making. There are myriad applications ranging from strengthening inventory management, to augmenting communication and fostering personalized customer experiences.”
The 2024 midyear poll marks the 10th time LMC has asked its store managers about their use of digital marketing tools — and the results reflect some notable survey highs. Email marketing, social media and text messaging have ranked as the most-used digital marketing tools for several years, and that continues in 2024. This year, however, the percentages of respondents using those tools are the highest in survey history, reflecting notable jumps over the respective three-year trailing averages.
- 83% reported using e-mail marketing, compared with a trailing three-year average of 77.5%;
- 80.3% used social media, compared with a trailing three-year average of 73.9%;
- 64.6% said they used text messaging for marketing purposes, compared to a trailing three-year average of 53.4%.
“These figures indicate retailers are implementing these technology tools at levels not previously seen in our survey,” LMC’s Melissa Sievwright, vice president of marketing, said. “Email, social media and texting are all ‘tried and true’ channels for reaching consumers. It’s encouraging to see our tenants leveraging them for engagement.”
For survey participants who incorporated social media in their marketing mix, Facebook (used by 89.7%), Instagram (used by 76.5%) and TikTok (used by 32.4%) remained the three most popular platforms.
Nearly 70% of LMC survey respondents offered an online option for purchasing goods, scheduling appointments for services or placing orders for pickup. About 56% provided in-store, online ordering (with free shipping) for out-of-stock items to accommodate that.
The survey also explored how retailers are using technology in-store to provide incentives and convenience for their shoppers. Popular options in 2024 include digital coupons, discounts and/or loyalty points (offered by 63.7%); free Wi-Fi (offered by 49.3%); and electronic receipts (offered by 43.8%).
Beyond providing technology trends insight, the LMC survey findings indicated 2024 is shaping up to be another strong year for brick-and-mortar performance, with 66.9% of participants saying their year-to-date sales are the same or higher compared to midyear 2023, and 69.5% saying their traffic is at a similar or higher level. And their outlook is positive, with 79.6% expecting sales to maintain or increase pace through the end of the year.
The firm’s next Retail Sentiment surveys, which poll retail store managers in the firm’s 125-property, more than 16 million-square-foot leasing and management portfolio, will be conducted in October/November, gauging expectations and plans for the holiday season, and in January, exploring outlooks for the coming year.
