"2024 Retail Forecast: Major Themes, Comebacks, and Consumer Expectations"

TD Cowen's note highlights three major retail themes for 2024: consumers seeking value-driven deals and preferring private labels like Costco's Kirkland and Walmart's Great Value, the rise of Chinese e-commerce platforms like Xi and Temu, and the significant adoption of AI in retail, projected to jump from 40% to over 80% of companies in three years. AI is being used for trend prediction, labor automation, online shopping, price optimization, and managing higher e-commerce return rates. Additionally, retail media networks like Walmart Connect and Target's Roundel are leveraging AI to enhance advertising and attract consumers.