Being the biggest retail market globally, the US retail market, in almost 20 years,  has doubled its size to $6.6 trillion and it is estimated to reach almost $8 trillion by 2026. Though the pandemic has decelerated this growth, simultaneously, it forced many retailers to speed up their long-term commitments to transformational thinking in terms of digitalization and culture. The retail sector of the country supports more than 50 million positions in the labor market, but the employers will have to adapt to the new reality by humanizing work conditions and building new skills for their employees.

The pandemic proved that it is more than essential to become more resilient and flexible in crisis resolution. This concerns also the supply chain which proved to be very fragile. According to Deloitte, the consumer of today values most stock availability. A stockout will shake consumer loyalty and confidence. Therefore, the retail players should shift their focus towards developing and adopting more flexible inventory forecasting models and continuously search for new partnerships. 

Digitalization of the retail market.

The digital revolution has already changed and will continue to change the retail landscape. In 2022, 15% of the total retail sales were made through digital channels. This number is expected to reach more than 20% in the next 4 years. Technologies like NFT’s, blockchain, IoT etc. will enable companies and organizations to flourish in this new digital reality. E-commerce channels nowadays are non-negotiable and every company and brand has to invest in this channel to guarantee their success. Metaverse retailing is also a new trend where more and more investors are willing to put their money in. Though the future of this technology is still uncertain, it has truly gained the interest of the public.

Automated checkout is also a new reality. Though it frustrates many consumers and there is space for development, it is the solution to tackle labor shortage and minimize labor costs in the retail industry. More and more retailers are investing in this method with supermarkets and hypermarkets being in the forefront. Especially the pandemic encouraged the adoption of this checkout method as it minimizes social interaction. There are many start-ups that innovate in this sector, which is here to stay. 

There are many tech-retail companies that have a lot of growth opportunities in the U.S. market. By using AI, machine learning, and various other innovative technologies have a lot of potential to flourish. One example could be the German Metaverse Retail Solutions company “Rooom” and the Estonian”Alpha AR”.

Market Entry Opportunities. 

The U.S. retail market offers limitless opportunities. Even though there are big national names to compete with, by conquering the U.S market it is reassured that your company has gained a great bet with high returns, as American consumerism never disappoints. For instance, the German retail giant, Aldi, showed its true strength after entering the U.S. retail market.Today, they aim to become one of the top retailers by being present in more than 35 states. 

A market with a lot of potential in the U.S. is the cosmetics and toiletries retail industry. In 2021, the industry generated $85 billion in revenue, being the market’s strongest performance. It is expected to grow by 6% in the coming years. The U.S. consumer is willing to experiment with various products, like Korean Beauty products, being heavily influenced by social media trends. As a result, in order to be successful a clear social media campaign strategy, a strong website performance, and a SEO optimization strategy could make any company go a long way. A case like that is the British skincare company The Inkey List. By having competitive pricing strategy and by recruiting the correct social media personalities they managed to gain the U.S. consumer. 

Sustainability, even though being a controversial topic in U.S. society, has gained a lot of interest especially among young consumers who claim that they prioritize sustainability values of each company. Terms like “organic”, “vegan”, and “handmade” are trending throughout the internet, as the consumers seek for those qualities. Cosmetic and toiletry companies that offer gentle for the skin and for the environment products would be a true success. An example like that is the British company Lush, which has a great brand awareness in the market and continually rising profits.