How Will Retail Look Ten Years From Now?
How Will Retail Look Ten Years From Now?
There is little doubt in the dynamic nature of the retail industry. Predicting how it will look two years from now is quite difficult, let alone ten years. However, certain trends shape for some reason. These reasons could be the result of market trends, customer preference or anything. In short, predicting the future of retail marketing is quite difficult in most cases. Here, we present to your valuable info on how to judge the probable future of the retail industry in years to come:
Retail Trends Are Changing
If you’ve been attached to the retail business, you would know that its landscape has changed drastically in the last ten years. In fact, there is a constant shift in the way consumer shopping trends. They’d see the price, compare it online through their smartphones or tablet PCs and shop for the one having low prices.
With e-commerce becoming a popular way of shopping, things are only going to get tougher in years to come. However, traditional stores are still going great guns. These stores include roadside shops and stores that people provide people with instant shopping options. According to an estimate, these retail stores will account for up to 85% of the overall retail sales in the US by 2025. Keeping the ongoing retail trends in mind, it is entirely possible that the retail industry will see a significant impact from these trends in the next ten years:
- E-commerce retailing
- Revolution of distribution
- Personalized marketing
- Innovative retail business trends
- Demographic changes
A part from these, the upcoming e-commerce boom will likely sweep away many traditional, smaller retail stores.
Will Malls Survive the Amazon Onslaught?
For the past few years, Amazon has indeed revolutionized the retail e-commerce industry in many ways. So much so that it now stands as the biggest online retailer in the world. Amazon provides customers many benefits including a unique and varying collection of many types of consumer goods, a very speedy shipment process that takes few hours, and global accessibility.
The online retail Goliath just announced that it is now testing a two-day delivery pass membership process to improve transfers. Apart from these, retail shopping with Amazon has more security compared to physical shopping. Judging that Amazon could well end up sweeping many physical retail stores in the next few years, Walmart has invested approximately $2 billion in improving its online retail presence.
Despite Amazon, Physical Retailers Will Do Well
To the surprise of many, the brick and mortar stores are doing reasonably well in the market. According to ICSC Holiday Consumer Trends, in January this year, approximately 91% of shoppers shopped from a physical retail store. About 32% utilized click and collect service for shopping but ended up picking their merchandise from a physical store. Before you start wondering why this shift in consumer trends, it would be wise to see the share of e-commerce sector.
Despite an increase in share, the e-commerce segment doesn’t get a huge chunk of retail business. In fact, it barely accounts for 7% of the total consumer spending. While it has taken a good chunk of its share from physical retailers, brick and mortar stores are doing well in the market.
Who Will Survive the Next 10 Years?
If current trends are anything to go by, both e-commerce and physical stores will serve consumers side by side for many years to come. When you look back, it becomes evident that both market segments have survived and prospered the hard times and are doing well as we speak. However, the e-commerce will steal a bigger share of the market from physical stores. On the other hand, the physical stores have been improving their business strategies to cope up with the challenge they face from e-commerce giants such as Amazon. They’ve been working to train staff with sophisticated loss prevention techniques, online training, and reducing theft and stealing through loss prevention academies that help train their employees for the cause.
Overall, the retail industry could well see both e-commerce and physical retail business surviving side by side. Though the percentage market figures may fluctuate here and there, no serious threat is looming over either segment of the retail sector.
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