Twelve Trends Will Shape The Year in Retail

Ahead: Smaller Stores, Personalization, Experience, and Tech Everywhere
Last month – January – is always “Predictions Month,” with pundits in every industry scanning the horizon for what’s ahead. We’ve reviewed most of the 2017 retail and retail real estate outlooks and wanted to share what we think is the best of the bunch. The comprehensive list that follows is from the Vend blog and includes observations from experts worldwide. Keep an eye on these twelve as the year rolls forward.

Shoppers Will Seek Retailers Who Deliver a Good In-Store Experience
1. Stores offering unique shopping experiences will thrive. “Experience” includes special additions like food services, but also the delivery of a seamless shopping experience, reflecting the online world. Crate + Barrel’s “Mobile Tote” is a good example. Shoppers use store-provided tablets to browse and note their favorites, while sales associates ready their orders.

2. Smaller stores will win out over their super-sized counterparts. Time-starved shoppers have less tolerance for navigating big spaces and look for easy-to-access inventory. Target, Best Buy and Ikea have jumped in with junior box stores. Expect more to follow.

3. Specialty stores will perform better than department stores. Building on #2 above, smaller venues with well-curated inventory and a knowledgable staff will beat the traditional department store concept. Note: those Millennials everyone is chasing are specialty store fans.

4. “Retailment” (the fusion of retail and entertainment) is the new game in town. To entice shoppers to leave their screens for an out-of-home experience, retailers will deliver everything from virtual reality to pop-ups. Note the rise of theaters that serve dinner and cocktails along with the movie.

 

Services Will Be Expected

5. Shoppers will expect same-day shipping. Consumers want the traditional gratification of having their purchase on the day they make it.

6. Personalization will be more important than ever. Shoppers want to be recognized and rewarded. Loyalty programs will step up their game with more customized offers based on buying history and other data.

 

The Reign of Tech Will Continue
7. Mobile will be the way to pay. TechCrunch predicts that there will be 447.9 million mobile payment users this year. Purchases in this mode will total $60 billion in 2017 and $503 billion in 2020. Savvy retailers will adopt whatever system fits them best, choosing from custom apps or third-party options like Apple Pay.

8. Omnichannel growth will continue. Effective omnichannel strategies will separate the winners from the losers in 2017. Vend’s retail trend watchers expect to see retailers push omnichannel in bold, new directions to deliver that seamless experience.

9. Data will continue to drive retail success. Data will be a force in every aspect of the retail process from supply chain to purchase. Collection and analysis of information will be a top focus, with social shopping making a major contribution.

10. Retail and tech will unite to deliver new ways to bring shoppers into bricks and mortar stores. Science fiction will come to shopping: the Internet of Things, virtual reality, artificial intelligence and robots.

11. Apps, services and third parties will help bricks and mortars compete with online. But there’s one caveat: retailers will need to be selective about the tech products and platforms that serve their particular needs. There will be many to choose from. The best options are the ones that free the user to focus on the customer.

 

Transparency and Sustainability: Must Haves for Success in 2017
12. It’s no longer enough just to sell quality products at good prices. The Internet has created a hunger for information. Shoppers want to know what goes into a product. They’re driven by both ethics and a commitment to sustainability. This trend will continue into 2017 and beyond. (Think Millennials).

If you’ve enjoyed these highlights, read the complete Vend report at:

https://www.vendhq.com/university/retail-trends-and-predictions-2017 and watch these predictions become reality.

 

 

 

 

Back-to-School Retail Season Looks Like Something to Celebrate

Fastest Rate of Growth in Four Years Was Driven by Electronics and Discounters

Early numbers are in for the 2016 BTS shopping season and retailers have something to cheer about. Though August retail numbers slipped a bit (down 0.3 percent), BTS sales were strong. Retail trend watchers and managers of retail real estate alike can’t help but be cheered by the activity during this second biggest shopping period of the year.

Will BTS Sales Meet the NRF’s 2016 Projection of $75.8 Billion?
Though not all the numbers are in yet, a recent report from Reuters says that 2016 BTS spending grew at its fastest rate in four years. According to statistics from First Data, sales rose 2 percent in July vs. 1 percent in 2015 and 2014 and just .2 percent in 2013. The NRF’s $75.8 billion projection for the BTS 2016 may be realized.

Good Weather and Optimistic Outlook Brought in the Shoppers
Better weather than in recent BTS seasons brought a wave of shoppers into stores. Many of them were searching for bargains – especially parents of young children. These are the thrifty Millennials, who came of age in lean times. “Income rises faster than frugality changes,” one retail analyst suggested.

Electronics Were the Hottest Items on the 2016 Shopping List
As expected, the big-sellers could be found in the electronics category. Electronics and appliance sales have been climbing in 2016 – their sharpest ascent in four years, according to First Data. BTS shoppers went for tablets and USB drives, especially if those items were bundled with special offers. Best Buy’s aggressive offers and coupons delivered strong sales. Items geared for dorm life were among the big winners.

Gap Recovers and Fast Fashion Outposts Score Big
Gap gained traction during the BTS season, leading to thoughts that its troubles may be behind them. Low-priced, fast fashion stores like Old Navy, T.J.Maxx and Marshalls delivered strong numbers, too. Chief Industry Analyst-Retail at NPD Group, Marshal Cohen credited the numbers at these stores to youngsters who will accept shopping at lower-priced retailers because they can get “more stuff.”

Whatever the reason for surging sales, retailers are closing out a banner season – the best in a long time. Now, all eyes are on the winter holiday ahead.