M-Commerce Takes Sales From Struggling Tourism Retail – RetailWire

U.S. Retailers Struggle with Dwindling Sales Amidst Slow Return of International Shoppers and Rise in Online Shopping

The Sustainable Development Goals (SDGs) highlight the importance of sustainable economic growth and responsible consumption and production. U.S. retailers are currently facing challenges in achieving these goals due to dwindling sales, which can be attributed to the sluggish return of international shoppers and the surge in online shopping.

Slow Recovery of International Tourists Impacts U.S. Retailers

The arrival of foreign tourists to the United States has only recovered 73% so far this year since pre-pandemic levels, according to the U.S. Travel Association (USTA). This slow recovery has had a significant impact on retailers that heavily rely on foreign shoppers, as they are struggling to make ends meet. The USTA predicts that American retailers will lose $6 billion in spending by 2023 due to the lack of tourists.

Foreign Visitors’ Expenditure on U.S. Retail Stores

Before the pandemic, foreign visitors directed 21% of their expenditures toward U.S. retail stores, amounting to nearly $25 billion. Shopping was the primary activity for over 80% of these international visitors, with Asian tourists, particularly from Japan and China, being the top spenders. In 2019, they contributed $2.8 billion and $2.6 billion, respectively.

Impact of COVID-19 Restrictions on Retail Recovery

Strict COVID-19 restrictions hampered the inflow of foreign capital into U.S. retail until May 2023. Although the restrictions were lifted in May, the anticipated retail recovery has been slow. The U.S. Travel Association expects a gradual return of tourist retail spending.

The Rise of Global E-Commerce

The global e-commerce industry experienced a significant boom, reaching over $5.7 trillion in 2022. While giants like Amazon dominate the online retail scene, Chinese platforms like Taobao and Tmall overshadow them in terms of merchandise value. The convenience of shopping through smartphones, known as “m-commerce,” has further impacted physical store sales. In 2022, 70% of global retail website visits were made through smartphones.

Changing Dynamics: Travel Experiences vs. Shopping

The proliferation of m-commerce, especially in countries like China and South Korea, may be influencing Asian tourists in the U.S. to prioritize window shopping over making actual purchases. They can easily order items online at any time. This evolving dynamic suggests that international tourists may prioritize their travel experiences over shopping sprees in American retail stores.

The United States as a Preferred Shopping Destination

Despite the changing dynamics, the United States remains the preferred choice for travelers looking to shop during their vacation, according to Travel Pulse. In 2019, the U.S. was the largest contributor of retail tourism to gross domestic product (GDP), totaling $34.7 billion. Despite the global pandemic, America retained the No. 1 spot in 2020 with $17.5 billion. In 2021, retail tourism contributed $23.9 billion to the country’s economy.

SDGs, Targets, and Indicators Analysis

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 8: Decent Work and Economic Growth
• SDG 9: Industry, Innovation, and Infrastructure
• SDG 12: Responsible Consumption and Production
• SDG 17: Partnerships for the Goals

The issues highlighted in the article are connected to these SDGs because they address economic growth, international trade, consumption patterns, and partnerships for sustainable development.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% GDP growth per annum in the least developed countries.
• Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product, in line with national circumstances.
• Target 12.2: By 2030, achieve the sustainable management and efficient use of natural resources.
• Target 17.17: Encourage and promote effective public, public-private, and civil society partnerships, building on the experience and resourcing strategies of partnerships.

These targets are relevant as they aim to promote economic growth, sustainable industrialization, responsible consumption and production, and partnerships for sustainable development.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator 8.1.1: Annual growth rate of real GDP per capita.
• Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.
• Indicator 12.2.1: Material footprint, material footprint per capita, and material footprint per GDP.
• Indicator 17.17.1: Amount of United States dollars committed to public-private and civil society partnerships.

These indicators can be used to measure progress towards the identified targets by tracking economic growth, industrialization, resource efficiency, and partnership commitments.

Table: SDGs, Targets, and Indicators

Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.

Source: retailwire.com

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