The overview: Retailers are entering 2023 amid a shaky environment as economic uncertainty deepens. While there are opportunities for growth, merchants will need to be nimble in order to thrive. Here are three storylines we expect to be talking about this year:
Retail media’s disruption of the $70 billion linear TV ad market: Retail media is aggressively moving into streaming TV.
TikTok’s social commerce push: Gen Z’s favorite platform has started testing TikTok Shop with select US merchants. The company’s latest moves point to a focus on commerce, which will offset a lowered ad revenue outlook. US ecommerce livestreaming and owned fulfillment centers are on the horizon—building on the #TikTokMadeMeBuyIt phenomenon (30 billion views and counting) to entice young shoppers.
Challenges among mid-tier brands: Consumer bifurcation has hollowed out the middle. After experiencing wealth-accumulation growth over the past five years, the middle class is seeing it dwindle more quickly than other income brackets, according to Realtime Inequality.
Go further: Dive deeper into our predictions for this year in our report Retail Trends to Watch for 2023.
This article originally appeared in Insider Intelligence's Retail & Ecommerce Briefing—a daily recap of top stories reshaping the retail industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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