Navigating the Evolution of Retail

BY TYLER MICIK

THE DELAWARE RETAIL COUNCIL (DRC) is an affiliate of the Delaware State Chamber and National Retail Federation (NRF). The DRC’s mission is to support and improve the retail climate in Delaware and serves as retailers’ advocate at the state and local government levels. The group meets frequently throughout the year to discuss and help solve challenges retailers are facing and advise State Chamber leadership on retail issues.

According to the NRF, the retail industry is the largest private-sector employer, supporting more than one in four jobs, or 55 million American workers. In Delaware, the industry supports around 166,000 jobs and has a $5.8 billion direct impact on Delaware’s GDP.

These numbers demonstrate that the industry is strong. One common misconception is that brick-and-mortar stores are disappearing with the rise and continued growth of e-commerce. The reality is, 80% of all shopping still happens in stores. E-commerce levels peaked at 19% at the start of the COVID-19 pandemic in April 2020 and shrank to 15% by the end of 2021— signaling that stores are still an integral part of the consumer shopping experience. Retailers are taking notice and are evolving to meet consumer demand by offering things like ship-from-store and in-store pickup. In some cases, retailers are opening new stores because research suggests it can increase traffic to their website by 37%.

Retail is an ever-evolving landscape. However, consumers still want the product they’re looking for at the best price, and they have more options than ever.

While this is good news for consumers, it can be bad news for some existing brands or startups looking to enter the market.

Aside from competition, retailers face other challenges including material shortages, delays in supply chain, and increased fuel and labor costs. For example, there’s almost two job openings per unemployed person in the U.S.—leading to significant wage increases and higher costs for retailers.

In 2025, the DRC hopes to work with policymakers to address these challenges and support policies that improve the retail sector. One issue the DRC will continue prioritizing is combating Organized Retail Crime (ORC).

The NRF estimates retailers lost $112 billion in “shrink”—or inventory—in 2022, which is up from $93 billion in 2021. While this includes other types of loss, theft makes up about 65% of total shrink. But ORC is not solely a monetary issue, it’s a public safety one. Everyone wants to feel safe in a store, whether you’re a consumer going shopping or a retail employee reporting to your shift. By working together with the Attorney General’s office, the courts, police, and policymakers, we can combat issues like ORC.

Jeff Bezos once said, “We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.” Similarly, the DRC views our members as guests, and we are the host. It’s our job to bring retailers and policymakers together to support and strengthen the retail industry in Delaware.