Retailers plan to open more storefronts and bolster operations in 2024, survey

“Return to normalcy.”

It’s a phrase that’s intuitively reassuring when you hear it, but what does it mean for brick-and-mortar retailers?

More than 30% of retail store managers expect to open new locations this year, the highest figure since 2017, according to Levin Management Corporation’s annual retail sentiment outlook survey.

• Nearly two-thirds (64.8%) said their 2023 annual sales volume matched or exceeded the previous year, and 68% said the same for their holiday sales volume.
• It should be noted, however, that these figures fall behind the past two surveys.

“After a couple of incredible growth years in this cyclical industry, some normalization is due,” Matthew K. Harding, LMC’s chief executive officer, said in a statement. “Still, our numbers show solid performance for a majority of our survey participants.”

But some adaptation is to be expected in the industry. Almost 45% said they have or plan to change their business model in order to remain competitive. Among that 45%...

• 4% said they put more focus on employee training and the customer experience.
• 2% are starting to offer or have reconfigured their customer loyalty programs.
• 3% have changed their “convenience-focused initiatives.”

Plus, more than a quarter of respondents who said they are adapting said they have rebranded entirely or are updating their branding.