The report below gives a good overview of the Summer 2024 M&A activity in the Consumer Retail Industry Sector. As of April 2024, the global retail market was valued at $32.7 trillion, with projections indicating growth to $47.2 trillion by 2029, reflecting a compound annual growth rate (CAGR) of 7.6%, as reported by Mordor Intelligence. Additionally, Statista estimates the value of e-commerce retail sales in 2024 to be $6.3 trillion. The consumer retail industry is a dynamic and vital component of the global economy, contributing significantly to global GDP. This sector encompasses a vast array of businesses, from small local shops to multinational corporations, all providing a diverse range of goods and services to meet the ever-evolving needs of consumers. Traditional brick-and-mortar retail establishments, although still dominant with a market share of around 75%, are increasingly complemented by burgeoning e-commerce platforms, which have grown to account for nearly 25% of total retail sales globally. Factors such as urbanization, technological advancements, and shifting demographics are driving transformative changes within the industry. Urban centers worldwide are expanding, bringing in a larger, more diverse consumer base with higher disposable incomes, with urban populations expected to grow by 2.5 billion people by 2050. Technological innovations, including mobile connectivity, AI-driven analytics, and augmented reality, are revolutionizing the shopping experience, making it more personalized and efficient. For instance, mobile commerce now represents over 50% of e-commerce transactions. Additionally, the rising influence of tech-savvy Gen Z and millennial consumers, who prioritize convenience, sustainability, and digital engagement, is pushing retailers to adopt new business models and strategies. These generations, who collectively account for over $350 billion in annual spending in the U.S. alone, are driving significant changes in consumer behavior. As the retail landscape continues to evolve, businesses that can adapt to these changes by leveraging technology and understanding consumer preferences are poised to thrive in this competitive market.
Posted by Joseph P. Sands.