What Drives AI–Consumer Demand
By Mary Lau, RAN CEO
THERE IS A LOT OF SPECULATION GOING ON REGARDING
artificial intelligence. What is it? How will it affect me and my family? And what are the benefits or pitfalls? AI is a huge topic that will impact every aspect of our lives now and in the future.
Retailers are in the business of forecasting and catering to the future needs of the consumer. In the not-too-distant past, that was a guessing game, with merchandising efforts left to managers who needed near-psychic abilities. Artificial intelligence is increasingly driven by consumer demand in the retail industry, shaping how retailers operate and interact with consumers. This transformation is due to the growing expectation for a personalized shopping experience, efficient service, calmness, and seamless interactions across various platforms.
In recent years, there has been concern about what kind of information retailers were collecting on consumers and whether it would be weaponized or
Lau utilized inappropriately. Consumers today expect brands to understand their preferences and provide tailored experiences. Artificial intelligence enables retailers to analyze vast amounts of consumer data, such as browsing history, purchase patterns, and demographic information, to deliver personalized product recommendations and targeted marketing campaigns.
For instance, companies like Amazon and Walmart use AI-driven recommendation engines to offer customized shopping experiences that enhance consumer satisfaction and loyalty. AI also plays a crucial role in demand
forecasting and inventory management, helping retailers anticipate customer needs more accurately. By analyzing historical sales data, market trends, and external factors like weather conditions, algorithms can predict future demand, enabling retailers to optimize inventory levels and reduce stockouts or overstocking. It’s not hard to recall how COVID-19 completely disrupted the supply chain, causing chaos at open retail outlets. All this information helps retailers better understand consumer demand in real time, ensuring that popular products are always available.
Mary
What Drives AI
Smaller retailers are learning the advantages of 5G and how they can capitalize on technology to improve their businesses by staying up to date on innovative tools and industry trends. Never diminish the importance of the customer-to-owner relationship—AI will never replace that.
AI also enhances the in-store shopping experience by providing realtime insights into customer behavior. Technologies like AI-powered video analytics track foot traffic and product interactions, allowing retailers to optimize store layouts and product placements for a more engaging shopping environment.
Continued from page 1
that offers a glimpse of its future.
The club will have no checkout lanes, will display online-only items, and will focus heavily on fulfilling e-commerce orders for curbside pickup and home delivery. Sam’s Club has been actively trying to differentiate itself from its rivals
will be available to help people download the app and learn how to use it. Building trust with consumers by ensuring transparent data practices and providing options for data management is crucial, as responding to consumer demands is the major force driving AI adoption.
Most importantly, AI is improving customer service. AI-driven tools such as chatbots and virtual assistants are revolutionizing customer service by providing instant support and personalized recommendations. These tools can simultaneously handle a large volume
of customer interactions, offering efficient service that meets consumer expectations with quick responses. Retailers are increasingly adopting voice-activated assistance to facilitate a convenient shopping experience through voice commands, further enhancing customer satisfaction.
Sometimes, technology moves quickly, but it is always tested in other markets first.
Over 10 years ago, I experienced a form of Smart Cart and handheld technology for “ringing up” your grocery items and checking out in a small store in Italy. Now you see Walmart-owned Sam’s Club opening a club in the Dallas area
through technology. There is no doubt that Amazon’s entire operation is centered around technology.
Many have expressed concerns that AI will replace workers, but nothing in the trade journals I read indicates that. What it does suggest is that workers will still be there, but in new roles. Back to the Sam’s Club store—workers
By leveraging AI technologies, retailers can deliver hyperpersonalized experiences, optimize operations, and enhance customer satisfaction. As AI continues to evolve, its role in shaping the future will only grow more prominent, offering innovative solutions that meet the everchanging expectations of consumers.
Again, do not ever expect the Main Street retailer to be left behind in the AI transition. It will just look different and be more streamlined, tailored to smaller models. It’s always important to embrace the future— change is inevitable, and it is also exciting.
The State of the Retail Industry in Nevada
THE RETAIL SECTOR REMAINS A CORNERSTONE
of Nevada’s economy, contributing significantly to employment, tax revenue, and economic output. As of 2024, the retail industry is positioned as the fifthlargest employer in the state, accounting for 11% of Nevada’s total workforce and supporting an extensive network of businesses, both large and small. The data for this year paints a picture of growth and resilience, even as the sector adapts to shifting consumer behavior, rising costs, and an evolving regulatory landscape.
EMPLOYMENT AND WAGES
Retail in Nevada employed 149,271 workers in 2023, placing it among the top sectors in the state’s economy. This workforce represents a crucial part of local communities, with retail jobs spread across 8,361 establishments in diverse categories such as general merchandise, food and beverage, motor vehicles, and health and personal care.
On average, retail
RAN Staff Report
workers in Nevada earned $799 per week, or approximately $41,537 annually, contributing to a statewide wage pool of $6.2 billion in 2023. While retail wages are generally lower compared to other sectors, the industry still plays a vital role in providing stable jobs for a significant portion of the population, including entry-level positions for younger workers and more flexible jobs for those balancing other responsibilities.
ECONOMIC IMPACT
The retail industry’s economic footprint extends beyond direct employment and wages. Including indirect and induced effects, the sector supports 225,098 jobs, with an overall impact of $35 billion on Nevada’s economy. This encompasses jobs created through supply chains, local services, and consumer spending from retail employees. The industry is also a key contributor to state and local tax revenues, generating more than $1 billion annually in tax revenue, which helps fund essential public services and infrastructure projects.
RECORD-BREAKING SALES
Retail sales in Nevada hit a new high in 2023, with taxable sales totaling $88.7 billion, a 4.2% increase from the previous year. This upward trend reflects a resilient consumer base, bolstered by strong tourism and population growth in the state. While the leisure and hospitality sectors often dominate discussions about Nevada’s economy, retail remains a steady performer and benefits directly from the influx of visitors and new residents.
MAJOR RETAIL CATEGORIES
Nevada’s retail landscape is diverse, with several key categories driving employment and sales. General merchandise stores, food and beverage retailers, grocery and convenience stores, and warehouse clubs are the top employers. General merchandise stores alone employ over 28,140 people, with the combined food and beverage, and grocery sectors employing another 52,010 workers. These segments are supported by a mix of large chains and smaller, locally-owned businesses,
which form the backbone of Nevada’s retail economy. Small businesses, in particular, are vital to the state’s retail landscape. Of the over 8,000 retail businesses in Nevada, more than 87% have fewer than 20 employees. These smaller establishments provide 130,923 jobs, showing the importance of supporting small and medium-sized enterprises (SMEs) to maintain the health of the broader retail ecosystem.
CHALLENGES AND OPPORTUNITIES
Like many industries, retail in Nevada faces ongoing challenges. Inflationary pressures have pushed operating costs higher, while changing consumer preferences, such as the rise of e-commerce, require traditional retailers to adapt quickly. Retailers must find ways to remain competitive, balancing the need for an engaging in-store experience with the convenience of online shopping. Moreover, labor shortages continue to be a concern, with businesses finding it increasingly difficult to recruit and retain staff, particularly in
LEE CALLS ON DHS TO TACKLE ORGANIZED RETAIL CRIME
Nevada Congresswoman Susie Lee, along with over 80 other lawmakers, is urging the Department of Homeland Security (DHS) to step up efforts against organized retail crime (ORC). In a letter, they asked for updates on the DHS’s progress in establishing a retail crime coordination center. The lawmakers highlighted the risks ORC poses, including violence, health risks from stolen goods like baby formula, and economic harm to businesses. Lee emphasized that ORC caused $85 million in lost tax revenue in 2021, with nationwide losses from stolen goods reaching nearly $70 billion in 2019.
KOLO TV Reno
LV POLICE INVESTIGATE ORGANIZED THEFT RING TARGETING
DIABETIC
TEST STRIPS
Las Vegas police are investigating an organized retail theft ring focused on stealing diabetic test strips from drug stores, grocery stores, and big box retailers across multiple states. Stolen merchandise, valued at approximately $280,000, was recovered and intended for resale through online marketplaces. To combat
Nevada News
this growing trend, the police department has reactivated its Organized Retail Theft Unit, and new felony charges for participating in organized retail theft are being enforced. Retailers are also increasing security and collaborating with Nevada’s Attorney General’s office through a new task force to tackle theft. Rising theft rates threaten store operations, as retailers warn closures like those recently announced by Target could happen locally without effective intervention.
News
3 Las Vegas
POLL SHOWS MANY NEVADANS DISTRUST U.S. ELECTIONS BUT TRUST STATE ELECTIONS
A recent poll found that while over 30% of Nevadans distrust the security of U.S. elections, a larger majority trust the state’s election process. Around 14% expressed doubts about Nevada’s elections, with distrust higher among Republicans. Nationwide distrust stems from unfounded claims of voter fraud in 2020, with over a third of Nevadans still questioning President Biden’s legitimacy. Concerns about potential irregularities in the
2024 election persist, but efforts to improve election trust in Nevada are seen as successful. Many respondents support election reforms like using paper ballots and securing voting machines.
Nevada Independent
U.S. APPROVES MAJOR POWER LINE PROJECT IN NEVADA
The Biden administration has approved NV Energy’s Greenlink West Transmission project in Nevada, a 472-mile power line that will transmit enough electricity to power about 5 million homes. The project is part of the administration’s efforts to accelerate clean energy initiatives and move the U.S. closer to its goal of decarbonizing the electricity grid by 2035. The Greenlink project, costing $4.24 billion, will connect North Las Vegas to Reno. Additionally, a large solar and battery project, Libra Solar, was approved, further supporting Nevada’s clean energy goals.
Reuters
SUPREME COURT BLOCKS JILL STEIN FROM NEVADA BALLOT
The U.S. Supreme Court has upheld a decision by the Nevada Supreme Court preventing
Green Party candidate Jill Stein from appearing on the 2024 Nevada ballot. The issue arose after the Nevada Secretary of State mistakenly gave the Green Party the wrong petition form for gathering voter signatures. The Nevada Democratic Party challenged the Green Party’s certification, and the state court ruled the signatures invalid due to the form error. The Green Party appealed, but the Supreme Court rejected their request, leaving Stein off the ballot in Nevada. NPR
NEVADA, ARIZONA GOVERNORS URGE CALIFORNIA TO HALT BILL AFFECTING GAS PRICES
Nevada Governor Joe Lombardo and Arizona Governor Katie Hobbs have sent a letter to California Governor Gavin Newsom urging a stop to legislation, including ABX2-1, that could raise gas prices in their states. The governors argue that California’s proposed laws on refinery inventory could create fuel shortages and disrupt the regional economy, increasing costs for consumers in Nevada and Arizona. Both governors stressed the need for bipartisan cooperation to prevent
REPORT SHOWS GROCERY STORES WITH CLINICS SEE MORE SHOPPERS
A report from Placer.ai found that grocery stores offering on-site clinics, like Kroger’s Little Clinics and H-E-B Wellness, are attracting more affluent customers and families with children. These stores are seeing higher foot traffic compared to locations without clinics. The convenience of instore healthcare services, such as physicals, vaccines, and nutrition plans, is driving repeat visits, especially among families. Higher-income households are more likely to visit these clinic-equipped stores, and Kroger’s locations with clinics saw a significant increase in parental shoppers and repeat customers.
Grocery Dive
HOME DEPOT REQUIRES CORPORATE EMPLOYEES TO WORK QUARTERLY RETAIL SHIFTS
Home Depot has introduced a policy mandating all corporate employees, including senior management, to complete eight-hour shifts at its retail stores every three months. This initiative, starting in late 2024, aims to help corporate staff better understand the challenges
National News
faced by in-store associates, enhancing empathy and decision-making. It reflects Home Depot’s focus on bridging the gap between corporate and retail teams, especially during a period of slowing consumer spending and increased industry-wide labor issues.
MSN News
AMAZON FOCUSES ON SELLING CASHIERLESS TECH TO OTHER STORES
After removing it from most of its U.S. stores, including its Fresh and Whole Foods locations, Amazon is shifting its focus to selling its cashierless “Just Walk Out” technology to other retailers. The technology, which lets shoppers skip checkout lines, is costly and challenging to scale in large stores. Instead, Amazon is offering simpler options like Dash Carts in its own stores. Despite setbacks, Amazon has installed the system in over 200 third-party stores and aims to expand further. The company continues refining the technology, focusing on small to medium stores that are more cost-effective.
CNBC
AMAZON ADDS NEW VISUAL SEARCH FEATURES
Amazon has
introduced five new visual search features to help shoppers find products faster and more accurately. These include visual suggestions that show similar items based on search terms, a “more like this” feature for quick comparisons, and product videos visible without needing to click on items. Additionally, shoppers can now add text to their image searches with Amazon Lens and circle specific items in an uploaded image to narrow down their search results.
Retail Dive
SAM’S CLUB OPENING CHECKOUT-FREE STORE
Sam’s Club is opening its first cashierless store in Grapevine, Texas, where shoppers will use the Scan & Go feature on the Sam’s Club app to scan items and pay without going through traditional checkout lines. This pilot store is part of Sam’s Club’s efforts to embrace a fully digital shopping experience. The store will also feature large items with QR codes for online purchases and has expanded space for curbside and home delivery orders. This new approach builds on earlier tests of frictionless shopping at Sam’s Club’s innovation lab store.
Chain Store Age
WALMART DONATES $10M FOR HURRICANE RELIEF
Walmart, Sam’s Club, and the Walmart Foundation have increased their donation to $10 million to support communities affected by Hurricane Helene in the Southeast U.S. They are working with country music star Dolly Parton, who donated $1 million to the Mountain Ways Foundation to help flood victims in Tennessee. Walmart is providing essential supplies like food, water, and showers in impacted areas and has launched a national campaign to raise more funds for the Red Cross. Parton and her businesses have pledged an additional $1 million to aid the recovery efforts.
Chain Store Age
RECORD ONLINE SALES EXPECTED FOR HOLIDAY SEASON
Adobe predicts recordbreaking online holiday sales of $240.8 billion between November 1 and December 31, 2024. Black Friday sales are expected to grow faster than Cyber Monday, with major drivers including strong discounts, increased mobile shopping, and influence from social media. Mobile shopping
Retail Association of Nevada
2024 NEVADA STATE OF RETAIL
A look back at 2023 retail statistics for the State of Nevada
The Nevada retail industry plays a vital role in the state’s economy, employing over 149,000 people in 2023 and contributing significantly to the livelihoods of many. Retail businesses form a crucial network of goods and services that shape daily life, making them essential to Nevada's social and economic fabric.
With record-breaking sales of $88.7 billion, the industry demonstrates its ability to meet evolving consumer needs. Beyond sales, retail supports over 225,000 jobs when considering indirect impacts and contributes $35 billion annually to the state’s economy, reinforcing Nevada’s ongoing growth and economic stability.
2023 NEVADA RETAIL SALES
AT A GLANCE
Nevada’s retail trade sector paid workers $6.2 billion in wages in 2023, representing 7.1 percent of all wages in the state.
In 2023, the retail trade industry reported a gross domestic product of $17.6 billion, a 12.9 percent increase from the previous year.
In 2023, taxable retail sales in Nevada totaled $88.7 billion, marking a new annual record, besting the previous high in 2022 by 4.2 percent.
FAST FACTS
The retail industry in Nevada employs 149,271 workers, accounting for 11.0 percent of total statewide employment.
The retail industry supports more than 225,098 jobs (indirect and induced) with an estimated annual economic impact of $35.0 billion.
Nevada’s retail industry contributes more than $1 billion in tax revenue to the state, county and local levels.
Businesses with fewer than 20 employees account for 87.7% of Nevada retail employment.
Small businesses comprise the majority of the retail businesses with 11,385 locations.
Nevada has 8,361 retail businesses among 32 store categories.
The Future of Grocery Delivery and Pickup
RAN Staff Report
THE GROCERY DELIVERY AND PICKUP MARKET
has undergone rapid changes over the past few years, driven by shifting consumer preferences and the expansion of e-commerce. Looking toward 2025 and beyond, grocery delivery and pickup services are
more retailers offer these services, consumers are embracing the flexibility to shop online and pick up in-store or have their groceries delivered to their door.
E-COMMERCE’S
LASTING IMPACT ON GROCERY SHOPPING
expected to see continued growth, reshaping how consumers shop for essentials.
GROWTH OF DELIVERY AND PICKUP SERVICES
In 2024, grocery delivery usage increased by 56% compared to 2022, and curbside pickup usage doubled, according to an April survey by Drive Research. Convenience is the driving factor behind this trend, with more than 1 in 10 shoppers citing curbside pickup as a major reason for choosing where to grocery shop. As
The pandemic greatly accelerated the shift toward online grocery shopping, and this trend has staying power. According to a July 2024
Capital One report, U.S. online grocery sales grew by 131% during the pandemic and are projected to reach $257.5 billion in 2024, with continued growth to $364 billion by 2026. Online grocery transactions also tend to be larger, averaging $109 per purchase, compared to $44.02 for instore transactions. While 22% of consumers use online grocery delivery services in 2024, certain categories— non-perishable packaged foods (78%) and personal care products (77%)—
are particularly popular for online purchases. This reflects how online shopping is well-suited for stocking up on items that don’t require immediate use.
DEMOGRAPHICS DRIVING ONLINE GROCERY GROWTH
More than 150.7 million Americans are expected to shop for groceries online in 2024, with specific demographics leading the charge. Families with children under 18 and shoppers aged 35-54 are the most frequent users of grocery delivery and pickup services. Younger consumers, especially those aged 18-34, are 119% more likely to shop for groceries online than older shoppers, highlighting a generational shift in grocery habits.
KEY PLAYER IN THE MARKET
Walmart and Amazon dominate the online grocery market, with Walmart expected to generate $45.71 billion in grocery sales online in 2023 and Amazon close behind with $35.46 billion. Both retailers continue to grow, with Walmart expected to reach $63.7 billion in online grocery
sales by 2025 and Amazon projected to reach $48.42 billion. Together, they account for over 50% of the U.S. online grocery market.
Kroger and Target also play significant roles, with their online grocery sales steadily increasing. Kroger’s sales are projected to grow by 13.1% annually, while Target’s are expected to reach $10 billion by 2025.
FUTURE OUTLOOK
Grocery delivery and pickup will remain central to the future of grocery shopping. As technology advances, innovations like drone deliveries and AI-powered fulfillment systems could enhance the speed and efficiency of grocery deliveries. Meanwhile, curbside pickup will likely continue to be a popular option for shoppers who value convenience but want to avoid delivery fees. By 2026, over 160 million Americans are projected to buy groceries online, making e-commerce a permanent fixture in the grocery landscape. Retailers that continue to innovate and invest in these services will be well-positioned to meet growing consumer demand.
2024 NEVADA
STATE OF PHARMACY
FAST FACTS
In 2023 pharmacies in Nevada employed more than 5,641 workers in nearly 500 establishments
As of 2022 there are 2,640 licensed pharmacists and 4,889 registered pharmaceutical technicians eligible to work in a Nevada pharmacy
In 2019 Nevada pharmacists filled more than 31,476,183 prescriptions
Nevada total pharmacy retail sales in 2019 exceeded $3.56 billion
During FY 2023- 2024, Nevada
pharmacy staff administered more than 1.03 million immunizations
During FY 2023-2024, Nevada pharmacy staff administered 94,998 Respiratory Syncytial Virus (RSV) immunizations
Important Information for SIG Members
NRS requires all existing members of a self-insured group to be notified of all new members. NRNSIG new members are listed below.
Bitrate Productions LLC
JAP LLC dba Zuna Club & Restaurant
Roadrunner Antifreeze LLC
Vegas
Aqua LLC dba Lake Las Vegas Water Sports
Vegas VIP Home Care LLC
NRNSIG members who wish to register a negative vote on a new group member, please write NRNSIG at 575 S. Saliman Road, Carson City, NV 89701, indicating which member and the reason(s) for the negative vote.
Thanksgiving
There are claims that the first Thanksgiving Day was held in the city of El Paso, Texas, in 1598. Another early event was held in 1619 in the Virginia Colony. Many people trace the origins of the modern Thanksgiving Day to the harvest celebration the Pilgrims held in Plymouth, Massachusetts in 1621. However, their first true thanksgiving was in 1623, when they gave thanks for rain that ended a drought. These early thanksgivings took the form of a special church service, rather than a feast.
In the second half of the 1600s, thanksgivings after the harvest became more common and started to become annual events. However, they were celebrated on different days in different communities and in some places there were more than one Thanksgiving each year. George Washington, the first president of the United States, proclaimed the first national Thanksgiving Day in 1789.
Nevada News
economic disruption and ensure lower fuel costs for their residents. They urged California to reconsider the legislation and involve neighboring states in discussions.
Fox 5 Las Vegas
NEVADA GOVERNOR TO INVESTIGATE CLARK COUNTY SCHOOL DISTRICT’S BUDGET
ISSUES
Nevada Governor Joe Lombardo is launching an investigation into the Clark County School District’s (CCSD) budget
Continued from page 4
amid concerns over a potential deficit that could lead to faculty cuts and overcrowded classrooms. The Clark County Education Association (CCEA) called for the investigation, accusing the district of mismanagement, particularly regarding an 8% salary increase for teachers that was not accounted for in the budget. While CCSD acknowledged a possible budget shortfall, it has not confirmed its size. The CCEA urged the district to
National News
is projected to reach $128.1 billion, making up over half of total online sales. Cyber Week, including Thanksgiving, Black Friday, and Cyber Monday, is expected to account for $40.6 billion in sales. While Cyber Monday remains the largest shopping day,
use reserve funds to cover the deficit rather than burden individual schools.
Las Vegas Review-Journal
GOVERNOR LOMBARDO CALLS FOR AUDIT OF CCSD BUDGET ISSUES
Governor Joe Lombardo has requested the Nevada Legislative Commission to expand its audit of the Clark County School District (CCSD) to investigate budget shortfalls. The district failed to account for an 8% salary increase
Continued from page 5
Black Friday is set to see the highest year-over-year growth.
Retail Customer Experience
AMAZON HIRING
250,000
WORKERS FOR HOLIDAY SEASON
Amazon plans to hire 250,000 fulltime, part-time, and
seasonal workers for the 2024 holiday season, offering jobs in customer fulfillment and transportation across the U.S. Seasonal employees will earn at least $18 per hour, with full-time workers gaining access to benefits like health care from day one and
Retail Industry in Nevada
lower-wage positions. However, Nevada’s retail industry also has considerable opportunities for growth. As the state’s population continues to expand, driven by a combination of natural growth and inward migration, the demand for retail services will likely increase.
Additionally, the ongoing development of major infrastructure projects, such as the expansion of the Las Vegas Strip and other tourism-related ventures, presents further opportunities for retail growth, especially in tourist-heavy areas.
The retail industry in Nevada is a critical
for licensed professionals, leading to potential teacher and staff cuts. Lombardo emphasized that, despite historic education funding, CCSD’s budget mismanagement could harm school operations. The expanded audit will focus on how funds are allocated, the causes of the budget issues, and how to prevent future problems. Lombardo seeks long-term solutions to ensure better financial management in the district.
Nevada Globe
education programs. Amazon is also investing $2.2 billion in additional pay for these roles. Many seasonal hires return each year, with opportunities for career growth within the company. Amazon provides flexible schedules and benefits like paid leave and mental health support.
Drug Store News
Continued from page 3
driver of the state’s economy, providing jobs, supporting small businesses, and generating significant tax revenue. In 2024, the sector continues to show resilience and adaptability, despite economic pressures and shifting consumer habits. With a growing
population and an economy buoyed by tourism, retail in Nevada is well-positioned to thrive, even as it navigates the challenges of a rapidly changing market. Retailers who embrace innovation and focus on customer experience are likely to find continued success in this dynamic landscape.
Nevada News
Mary F. Lau President/CEO
Bryan Wachter Senior Vice President
Elizabeth MacMenamin Vice President of Government Affairs
Piper Brown Vice President, Finance and Administration
Megan Bedera Editor
Sue Arzillo, Alphabet Soup Inc. Newsletter Design & Layout
