Most industries have had a tumultuous few years and now we wonder where they will go in 2022 and beyond. The revenue for the restaurant and apparel industries took a hard hit during 2020. Others like hardware, drug stores, and discount department stores saw more minor fluctuations. Supermarkets saw the highest spike due to being labeled essential retail and consumers remaining home. All of these industries returned to normal and are preparing to improve for the future.

Supermarkets, drug stores and restaurants have the sharpest revenue increase in their 2022-2023 forecast. The strong forecast for grocery stores makes sense after they established how essential they were. Recent supply chain issues have done little to curb the demand for staple grocery items. Innovations in mobile checkout and delivery have also future-proofed the industry against some pandemic concerns. On the opposite side of the spectrum, restaurants suffered the most in 2020. However, they have snapped back and have strong projections. This has been fueled by a transformation in the industry that has focused on automation and off-premise alternatives. The segment has doubled down on delivery and multiple franchises are building locations specifically designed for consumers who want to avoid dining rooms. Pharmacies have also proven their worth as consumers have a renewed focus on health. All of these projections are backed up by businesses that have been willing to adapt to meet the challenges ahead of them.

Conversely, hardware and apparel stores have stagnant revenue for their projections while discount department stores forecast slightly lower for 2022-2023. Home improvement will always take place and hardware stores have solidified their necessity even if they do not have major projected growth. Hardware stores have always had incredibly steady revenue and that should continue over the next year. Apparel stores have struggled to adapt over the last few years. Their digital offerings have not had the same impact as foodservice, yet they should be able to maintain their revenue. Apparel will continue to be important as consumers return to work and begin to travel again, which could start shifting forecasts into positive growth. Discount department stores have found themselves in a similar position to apparel. Their innovations have not been as robust, and they often rely on more in-store traffic. These three industries do not have high projections over the next three years, yet they should be able to maintain their current revenue and as foot traffic increase, so too will their projections. It’s also worth noting that these figures are for brick-and-mortar stores; online retailers have seen exponential growth since 2009, after the Great Recession and account for over $1 trillion in revenue last year alone.

2023 will provide a great opportunity for multiple industries to recover lost revenue and improve their monthly profits. CSG will be monitoring and updating these forecasts. It is an exciting time as innovative concepts become a reality and companies battle for consumers. The continued difficulties of the supply chain and the ever-present virus could alter the outlook for these industries at any moment. No matter what happens over the next few months, we can expect companies to adapt and overcome.