With 2020 officially underway (and NRF 2020 just a few days away), industry insiders are placing their bets on the retail trends we’ll be seeing this year. We’ve selected five of the top trends that are sure to impact the way consumers shop and transform the stores they shop in. Download the infographic or read the full article below.
1. Physical stores continue to evolve
Retailers like Walmart, Target and Best Buy are rolling out customer-facing digital touchpoints across their brick-and-mortar locations.
Meanwhile, e-commerce giants like Amazon and Bonobos are also moving into brick-and-mortar locations knowing that consumers want the best of both worlds.
Stores that took advantage of BOPIS (otherwise known as “buy online, pick-up in store” or “click and collect”) for example, saw an 18% higher share of digital revenue.
According to analysts at TCS, BOPIS will play a larger role in overarching retail trends involving omnichannel experiences as consumers decide to save on shipping charges but still take advantage of the ease of online shopping.
“This trend is driving traditional brick-and-mortar retailers like Walmart, Target, and Best Buy to enhance their online functionality and offerings, while also pushing e-commerce retailers from Bonobos to Amazon to open brick-and-mortar stores,” said Charudatta Ganpule, Head of Retail Research Desk for TCS.
2. Collaborations between digital natives and traditional retailers
Brand collaborations have gained momentum in recent years, and that isn’t likely to slow down as consumer demand for personalization rises.
When Adidas and Arizona Beverages teamed up for an iced-tea-themed sneaker collab, fans of each brand flocked to a pop-up store (with maybe a little too much excitement).
We also saw digital natives like Rent the Runway team up with traditional retailers like Nordstrom to improve the customer experience. This collaboration gets shoppers into Nordstrom stores while also making it easier for Rent the Runway members to return their clothing so they can get their next rentals.
Brand collaborations simply make sense in a competitive retail landscape where different retailers can leverage their strengths to raise their own profile while better connecting with consumers.
3. Consumer technology is enterprise technology
The distinction between consumer technology and customer-facing technology in brick-and-mortar retail is rapidly narrowing as consumers control much of their shopping experiences through their mobile devices.
Retailers can reduce friction at key touchpoints across their stores by aligning both the hardware and software to match the devices and interfaces consumers both know and love.
As retail hardware ages across many stores, a new crop of powerful and elegant technology is leading the charge. Those solutions are built on the same devices and platforms that are in the pockets of their consumers.
Nine of the top ten global retailers use iOS in their business, according to Computer World. This aligns with what we’ve seen in surveys that show 82% of work done on mobile utilizing iOS as a platform.
4. Personalization gets more personal
As Millennials and Gen Z make up a larger percentage of American consumers, retailers are shifting to better represent the values and preferences of those demographics. Studies show that younger shoppers seek out products and stores that offer a unique experience—they value personalization, social connection, and authenticity in their shopping experiences.
With the rise of YouTube and Instagram influencers as well as massive online communities like Reddit, consumers can find a niche for any number of hobbies and interests. Retailers are currently leveraging those communities to make sales, collect feedback, and improve their product offerings. This trend will continue into 2020 and beyond as younger shoppers enter the workforce.
5. The most innovative and interesting retailers will thrive in the new landscape
While ecommerce has made shopping more convenient for consumers, it has also made shopping more competitive for retailers. To differentiate their brands from competitors, successful retailers will seek out customer feedback, engrain themselves in the communities their customers belong to, and stay a step ahead when it comes to experience and personalization.
Jamie Merrick, head of Industry Strategy and Insights for Salesforce put it best:
“Being able to generate awareness, footfall, and additional revenue from genuinely useful and convenient offerings are the prizes, but only the imaginative and operationally nimble will be able to take advantage.”
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