Discussions about the impact of technology on the retail industry have been met with much unease. But a few years after the “retail apocalypse” was announced, physical shopping remains the preferred channel for most American consumers (Statista reports that total in-store sales are $5.35 trillion[1] compared to just $547 billion online[2] , although e-commerce qatar cell phone number is growing faster). Brick-and-mortar retailers that embrace omnichannel sales and new technology are being rewarded with record growth[3], increased customer engagement, and the ability to reach new global markets. It turns out that big box stores aren’t the only ones who know how to use technology to their advantage.
While traditional retail may be in its final stages of decline, the industry as a whole is alive and well. From experiential retail spaces to payment options that seem like they’re straight out of science fiction, we’re entering a whole new generation of commerce.
Top Retail Trends
Personalization on a whole new level
Retail giants are getting smaller
Eco-logistics
Discreet technology
The Future of Pricing and Payment
1. Personalization on a whole new level
While hyperpersonalized commerce is still in its infancy, retailers are beginning to respond to customers’ unique tastes in real time, both in-store and online. Most retailers expect to invest about 18% more in personalization over the next three years, while for best-in-class retailers, that forecast skyrockets to 30%. [4]
The three areas likely to see the greatest investment are inventory, manufacturing and customization at scale.
63% of consumers want personalized recommendations [5]
Custom inventory
62% of consumers now expect companies to send them personalized discounts, offers, and recommendations based on their in-store and online purchase history. [7] In response to these expectations, retailers are tailoring their inventory and marketing to consumers’ unique tastes using robust omnichannel loyalty and customer relationship management (CRM) programs.
Amazon 4 — Star
This Manhattan flagship brings Amazon’s online review system to life. Divided into sections like “Most Added to Wishlists” and “Bought Together,” it directly reflects online shoppers’ preferences, adding local features like its “New York Trends” section. [8]
Nike by Melrose
This Melrose Avenue store in Los Angeles uses online shopping data to guide inventory decisions. Inventory is managed based on preferences collected from nearby NikePlus loyalty program members, using a specialized app. Nike plans to introduce new inventory tailored to the data every two weeks to keep local shoppers interested.
“When we say ‘by Melrose,’ we mean that this assortment is created by their interests, their engagement, and their purchases.” — Michael Martin, vice president of digital products, Nike [6]
As omnichannel loyalty programs that bridge in-store and online purchases become more accessible to independent retailers, we'll likely see this personalization approach in more stores.