What's Happening?
Salesforce's end-of-year report reveals a significant increase in digital sales in the UK during the Golden Quarter, driven by AI-powered shopping experiences. Online sales reached $38 billion, marking a 5.5% year-on-year growth. AI and agents influenced
20% of retail sales globally, generating $262 billion. AI-driven channels like Perplexity and ChatGPT showed higher conversion rates compared to social media. In contrast, physical retail struggled with low footfall and minimal growth. The report highlights a shift towards 'agentic' shopping, where AI not only facilitates purchases but also manages tasks like returns and shipping updates.
Why It's Important?
The data underscores the growing influence of AI in retail, transforming how consumers shop and how businesses operate. The shift towards digital channels reflects changing consumer preferences and the need for retailers to adapt to technological advancements. The success of AI-driven sales channels suggests a potential decline in traditional retail, prompting businesses to invest in digital transformation. This trend could lead to increased competition among retailers to enhance their AI capabilities, impacting employment, supply chains, and consumer behavior.
