U.S. Retail Service Market – Industry Trends and Forecast to 2031

U.S. Retail Service Market Analysis and Size

The U.S. retail service market is driven by several factors including increased demand for automation and efficiency, a growing shift towards cashless payments, and a notable labor shortage. However, rising security concerns regarding digital payments and the high initial investment coupled with hidden costs pose significant restraints to market growth. Nonetheless, the market presents opportunities driven by surging technological advancements, enabling data-driven optimization and omni-channel integration. Despite these opportunities, challenges persist, such as difficulties in handling certain items and customer resistance to self-checkout processes, requiring innovative solutions to address them effectively.

Data Bridge Market Research analyzes that the U.S. retail service market is expected to reach a value of USD 28.83 billion by 2031 from USD 14.17 billion in 2023, at a CAGR of 9.6% during the forecast period of 2024 to 2031.

Market Definition

The U.S. retail service market encompasses a broad array of offerings tailored to meet the diverse needs of retail businesses across the nation. This market includes consulting and training services aimed at enhancing operational efficiency, customer experience, and strategic decision-making within retail enterprises. In addition, installation and integration services play a pivotal role in implementing advanced technologies, such as point-of-sale systems, inventory management software, and customer relationship management solutions, seamlessly into retail operations. Complementing these are support and maintenance services, vital for ensuring the continuous functionality and optimal performance of retail systems and technologies, thereby enabling businesses to adapt to developing market demands and maintain a competitive edge. Together, these components form an integral part of the U.S. retail service market, catering to the multifaceted needs of retailers in an ever-evolving business landscape.

U.S. Retail Service Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below: 

Driver

• Rapid Technological Advancements

AI, and IoT to enhance customer experiences and optimize operations the demand for retail services continues to grow. Service providers specializing in consulting & training, and installation & integration play a pivotal role in helping retailers navigate the complexities of technological innovation an​​​​​​​d unlock the full potential of advanced retail solutions, hence drive U.S. retail service market growth

Restraint

• Government Rules and Regulations

Government restrictions have impacted American free enterprise, especially burdening small enterprises, according to the U.S. Chamber of Commerce. Estimates place the yearly costs of federal regulations at as high as USD 1.9 trillion, including direct expenditures, lost productivity, and higher pricing.

Opportunity

• Emergence of Smart Retail Solutions

Service providers may profit from the increasing demand for cutting-edge technology that improve the shopping experience, increase operational efficiency, and boost corporate growth by providing integration services and retailer-specific consulting. By utilizing their experience and implementing a strategic approach, service providers may establish themselves as reliable allies in the advancement of intelligent retail. Thus, in the US retail service sector, the rise of smart retail solutions offers service providers some strong opportunities.

Challenge

• Shortage of Skilled Labor and Workforce Management

As the retail landscape continues to evolve with technological advancements and changing consumer preferences, retailers are increasingly reliant on a skilled workforce to drive innovation, enhance customer experiences, and optimize operations. However, the shortage of skilled labor, coupled with workforce management challenges, poses a threat to the growth and sustainability of the retail service market.

Recent Developments

• In April 2024, Board and CGI deepen their North America partnership, merging CGI's consulting with Board's AI-driven planning software for financial and operational transformation. CGI gains improved retail service delivery with Board's innovative solutions, focusing on supply chain optimization and merchandise planning, enhancing operational efficiency
• In April 2023, Infosys Limited partners with Walmart Commerce Technologies to enhance retail service capabilities, simplifying customer experiences and improving store employee efficiency through seamless omnichannel experiences. This strengthens Infosys' position as a leader in retail technology solutions

U.S. Retail Service Market Scope

The U.S. retail service market is segmented into two notable segments which are on the basis of services and application.

Services

• Consulting & Training
• Installation & Integration
• Support & Maintenance

On the basis of services, the U.S. retail service market is segmented into consulting & training, installation & integration, and support & maintenance.

 Application

• Grocery
• General Merchandise
• Fashion/Specialty
• Fuel & Convenience
• Hospitality
• Restaurant
• Travel
• Entertainment
• Others

On the basis of application, the U.S. retail service market is segmented into grocery, general merchandise, fashion/specialty, fuel & convenience, hospitality, restaurant, travel, entertainment, and others.

Competitive Landscape and U.S. Retail Service Market Share Analysis

The U.S. retail service market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, production sites and facilities, company strengths and weaknesses, product launch, product approvals, product width and breadth, application dominance, and product type lifeline curve. The above data points provided are only related to the company’s focus on the U.S. retail service market.

Some of the major players operating in the market are NCR Voyix Corporation, HCL Technologies Limited, ExlService Holdings, Inc., Wipro, Aspire Systems, Fujitsu, Infosys Limited, CGI Inc., Diebold Nixdorf, Incorporated, Oracle, Retail Services Group, Accenture, and Deloitte among others.

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