IN THEIR WORDS... Most Significant TRENDS IMPACTING THE GIFT & RETAIL INDUSTRY Approximately 60% of respondents highlighted economic factors, including inflation and rising costs, as the primary challenge influencing customer spending habits. There was also a widespread consensus that shoppers are exhibiting more selective, needs-based behaviors. HOW DO YOU SEE THE GIFT & RETAIL INDUSTRY EVOLVING OVER THE NEXT FIVE YEARS? " People seem to be becoming more and more interested in the backstory behind their purchases. They want to feel good about what they buy. " " I see the older customers spending money on things and the younger customers spending money on experiences. " NUMBERS TO KNOW of retailers indicated that consumers are exhibiting increased price sensitivity and reduced spending on discretionary items. of respondents highlighted the anticipated growth of e-commerce and the need to enhance digital presence as key trends. 60% 74% 68% of respondents cite social media as their most effective marketing channel. 91% of respondents' sales come from in-store purchases, on average. " Customers will continue to seek deals online more than ever and will seek out small businesses for what the big box cannot provide, especially with regards to customer service. Customers more and more want to see best practices when it comes to manufacturing and sustainability. When given the choice, we believe customers will choose the more eco-friendly option. " " We think there will be more online purchases - both for us and customers. With the cost of shows and hotels, we see more people limiting show attendance. We've had more online purchases coming from out of state lately, so consumers are less likely to go out and shop when hunting for something specific - they go online and search for it. " GIFTSHOPMAG.COM 93http://www.GIFTSHOPMAG.COM