Retail openings show significant growth in 2024

A recent study by Confimprese and Jakala shows that retail is booming, but also points out that artificial intelligence is becoming more and more important.

Nearly 6,000 New Stores Expected to Open by the end of the year

The latest Retail Summit, a joint initiative by Confimprese's Research Center and Jakala, has provided an update on the retail outlook for 2024. According to the report, the association's member base is expected to add 5,580 new retail outlets this year, representing a 6.6% increase. A significant portion of these openings, totaling 3,240, will take place in the second half of the year. Moreover, the retail sector will provide 33,264 new jobs over the next 12 months.

Conversely, the trend of store closures is expected to remain relatively weak, with a projected 2% decline compared to 2023. This trend is primarily attributed to excessive real estate costs (cited by 11% of respondents) and the need to streamline store networks (highlighted by 38%). Lease expiration dates (9%) and disagreements between franchisers and franchisees (4%) are less significant factors contributing to store closures.

Artificial Intelligence: The New Frontier of Retail

The summit also featured a research study on artificial intelligence in retail. AI is emerging as the new frontier for sales methods and store organization, with a surprisingly high proportion of respondents demonstrating knowledge and use of this technology. A remarkable 62% of respondents are already applying AI for hyper-personalization, 42% are using it to define their marketing investment mix, and approximately 30% are leveraging AI to develop product prototypes or redesign existing products. Only 19% of CEOs reported using AI for developing pricing models.

Marco Di Dio Roccazzella, General Manager of Jakala, commented that: “this analysis highlights various applications of AI, ranging from marketing and improving customer experience to corporate functions, with a significant impact on cost reduction, efficiency, and increased productivity. Generative AI is being successfully experimented with, particularly in personalized communication and customer service, thanks to its ability to create tailored content and automate support (assistance and consulting) with a high level of sophistication, significantly improving interactions with the public.”

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