Retailers Optimistic About 2024 with Plans to Evolve Supply Chain and Invest in AI According to Carl Marks Advisors Survey of Middle Market Companies

January 15, 2024
| Press Release, Survey

NEW YORK – January 15, 2024 – Executives and C-suite professionals at mid-market retail and consumer packaged goods (CPG) companies are nearly universally optimistic about 2024, with few anticipating a recession. According to a new survey sponsored by Carl Marks Advisors, a leading investment bank, almost 90% of survey respondents expect their sales to remain the same or increase in 2024.

Having absorbed the shocks of the COVID-19 pandemic and subsequent inventory challenges, retail executives remain focused on fine-tuning their supply chains and taking advantage of the latest tools and strategies for mitigating future turbulence. More than half of respondents plan to diversify their supplier base (53%), while a substantial percentage plan to increase onshoring (46%), invest more in supply chain technology (44%) and increase automation (43%).

“With inflation abating and interest rates leveling off, 2024 presents an exciting opportunity for retailers with the courage to embrace out-of-the-box thinking and innovation,” said Howard Meitiner, Managing Director at Carl Marks Advisors. “Retailers who are prepared to re-evaluate their business model and take the necessary steps to invest in integrated omnichannel experiences should be optimistic about the coming year.Following record lows in unemployment and a strong holiday season for retailers, now is not the time to be pessimistic. Companies willing to risk trying something different – whether a new strategic partnership or sourcing on-shore – will be rewarded in 2024.”

Most retailers are looking for ways to evolve how they show up in the marketplace, with most either planning to open new storefronts (96%) or close existing locations (89%). Despite plans to shake up the number of brick-and-mortar locations, a minority of respondents said they would invest in more employees (35%) or customer service (39%).

Key findings from the survey:

  • AI Will Impact All Aspects of Retail: More than half of respondents plan to invest in AI to support their marketing (56%) and financial forecasting (52%), and fewer than 1% reported no AI investment strategy for the coming year.
  • Widespread Optimism: Less than 10% of respondents expect sales to decrease year-over-year. In 2024, just 38% of respondents believe rising inflation will impact supply chain investments.
  • Supply Chain Evolution: Fewer than 1% of respondents say they plan on taking no actions to evolve their supplier chain.
  • Customer Experience Innovation: Retailers are prioritizing simple and efficient transaction processes and payment options to enhance the experience of their customers, with 2% of respondents investing in buy now, pay later programs and 35.6% focusing on implementing same-day delivery options.

Carl Marks Advisors sponsored the online survey from October 26-November 10, 2023. In total, 250 responses were collected from executives and C-suite professionals at middle-market retail and CPG companies with annual revenues between $25 million and $300 million.

About Carl Marks Advisors
Carl Marks Advisory Group LLC (Carl Marks Advisors) is a New York-based investment bank that provides financial and operational advisory services. Our integrated client service teams unite industry, operations, and transaction expertise to create effective solutions in complex situations. Securities are offered through Carl Marks Securities LLC, member FINRA and SIPC. Additional information about Carl Marks Advisory Group LLC and Carl Marks Securities LLC is available at www.carlmarksadvisors.com and www.carlmarkssecurities.com.

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