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Gen Z鈥檚 complicated path to purchase leans heavily on digital platforms and channels. But offline resources still play a key role.

Retailers faced no shortage of challenges in the first half of the year as elevated interest rates, the lingering effects of inflation, and a loosening labor market weighed on consumer spending. In this report, we鈥檒l contextualize our coverage of retailers鈥� Q2 revenues across four key verticals: department stores, home, mass merchants, and off-price.

Gauging the influence of digital on the shopper's journey.

Existing home sales fell to the lowest level since 1995 last year: Conditions likely won鈥檛 improve much this year, which could spell trouble for housing-related retailers.

Lackluster demand for home improvement products drove hardware store wholesaler and brand True Value to file for Chapter 11 bankruptcy earlier this month. The company plans to sell substantially all of its operations to rival Do It Best. Esprit cited 鈥渨eak business and financial conditions鈥� and 鈥渦nsatisfactory operating results鈥� as reasons behind its filing for Chapter 7 bankruptcy in the US.

The number of US homes changing hands is incredibly low: That poses a challenge to housing-related retailers like Wayfair.

Health and personal care is the fastest-growing ecommerce category in the US, per our July 2024 forecast, with projected growth of 14.2% YoY this year. Furniture and home furnishings ranks toward the bottom, with a projected 4.5% growth this year. But brand accounts may still be performing strongly on TikTok due to the popularity of DIY content.

A healthy percentage of shoppers are purchasing new items via social media in categories like accessories, furniture and home goods, and beauty. Complete survey results can be found in this report鈥檚 crosstabs. Product discovery: How digital channels stack up against the physical store.

The US economy is approaching the fabled soft landing: The Fed鈥檚 decision to cut rates by a half point should boost consumer sentiment and begin the process of unfreezing the housing market.

Another digital world appears more like a home where consumers can browse home goods curated by influencer duo Everything Envy. The big takeaway: Ecommerce is still just a small fraction of the retail industry; we expect ecommerce will account for 16.3% of overall US retail sales this year.