On this episode of Carolina Newsmakers, Don Curtis interviews Andy Ellen, President of the North Carolina Retail Merchants Association (NCRMA), to explore the evolving retail landscape in North Carolina. Ellen shares insights on consumer behavior, workforce challenges, inflation, organized retail crime, and the impact of artificial intelligence (AI) on retail operations.
Ellen begins by highlighting the shortened holiday shopping season due to a late Thanksgiving, emphasizing the importance of key dates like Black Friday and Small Business Saturday. He notes that consumer trends have shifted, with many shoppers starting earlier, even in October, to take advantage of deals. While online shopping remains strong, Ellen observes a resurgence of interest in brick-and-mortar stores, driven by the desire for in-store experiences and personal interactions. Programs like “Shop and See” have encouraged consumers to reconnect with local retailers, boosting physical store traffic.
Impulse buying continues to be a major factor in retail sales. Ellen explains that in-store setups like endcaps and checkout displays play a key role in encouraging these additional purchases. However, he also notes that modern consumers are better informed, often conducting online research before making in-person purchases to ensure they are getting the best value.
The discussion moves to workforce challenges, with Ellen addressing the difficulty of attracting and retaining employees in retail. He highlights programs like Rise Up, a retail credentialing initiative that equips workers with skills in customer service, supply chain logistics, and retail management. Ellen notes that the rise of the gig economy has also made it harder for retailers to compete for labor, as many potential employees prefer the flexibility of gig work.
Ellen delves into the issue of organized retail crime, describing it as a $7 billion problem nationwide. He explains how professional thieves target high-value items like infant formula, over-the-counter medications, and power tools, often reselling them online or in secondary markets. Organized retail crime has also contributed to increased costs and operational challenges for retailers, including the need to lock up commonly stolen items, which frustrates customers. Ellen applauds North Carolina’s bipartisan legislative efforts to combat organized retail crime, including stricter penalties and a new money laundering law.
Inflation is another pressing concern, particularly its impact on pricing and wages. Ellen explains how rising costs in labor, transportation, and energy have contributed to higher retail prices, creating a difficult balancing act for businesses and consumers. He also expresses concern about potential tariffs on imports from China, Mexico, and Canada, warning that such measures could further inflate prices.
Artificial intelligence (AI) is increasingly playing a role in retail, and Ellen outlines its potential benefits. Retailers are using AI for inventory management, personalized shopping recommendations, and staffing optimization. For example, AI can analyze sales patterns to ensure stores are appropriately stocked or recommend complementary products to customers. AI is also helping retailers improve customer service through virtual assistants and streamline operations by predicting peak shopping times.
Ellen addresses the critical role of community colleges in workforce development, particularly in training workers for distribution centers, which are thriving in North Carolina due to the state’s highway system and infrastructure. He highlights the importance of partnerships with local educational institutions to prepare workers for high-demand roles in retail, logistics, and supply chain management.
Finally, Ellen shares projections for the 2024 holiday season, based on a study conducted in partnership with Appalachian State University. Retail sales in North Carolina are expected to reach $42.24 billion, a slight increase from the previous year. He encourages consumers to shop early and support local retailers, emphasizing the role of retail in driving economic growth and community development.
