Insights from Linnworks: Retail Growth Trends in the UK and US
Linnworks has compiled data from 500 mid-market retailers operating in both the UK and the US, with annual revenues ranging from $7.5 million to $100 million.
The analysis reveals an extensive growth trajectory, as evidenced by 89.6% of UK retailers and 88.8% of their US counterparts reporting moderate to substantial year-over-year growth. Nevertheless, scalability remains elusive for some.
The report underscores that scalability is intricately linked to enhanced automation and the maturation of various sales channels.
In a statement, Linnworks CEO Jon Bahl remarked, “As retailers traverse the dynamic landscape of ecommerce, it becomes evident that growth and operational maturity are interdependent. Our latest survey findings illuminate the enduring expansion of the market while equipping clients with methodologies for scalability and progress.”
Inventory visibility emerged as a critical concern, with only about one-third of participants indicating they possess excellent visibility across all channels and warehouses.
Challenges such as inaccuracies in inventory tracking, fulfillment execution, and inconsistent system reliability are prevalent as businesses endeavor to broaden their market presence.
Moreover, Linnworks’ data indicates a paradigm shift in AI adoption, transitioning from a “nice-to-have” feature to an essential component. Over half of the respondents reported utilizing AI chatbots for customer support, with adoption rates at 60.8% in the US and 54.8% in the UK.
Remarkably, more than 95% of retailers are currently leveraging AI in their operations, and most respondents expressed intentions to enhance its use by 2026, contingent upon discovering “effective” applications.
This technology is also being utilized in various other business domains, including demand forecasting, inventory management, marketing optimization, and fraud deterrence.
Interestingly, automation has become standard rather than a distinguishing factor among these organizations. In the UK, 64.8% of businesses reported that their operations are predominantly or highly automated, while in the US, this figure is 60%.
However, disparities in the extent of automation correlate with organizational resilience, growth outcomes, and leadership assurance.
Logistics and fulfillment continue to play a pivotal role in customer experience, as retailers employing multiple carriers demonstrate enhanced resilience during peak periods, encountering fewer disruptions and possessing greater flexibility in managing delivery costs and speed.
Source link: Finance.yahoo.com.
