Page 34 - RLI February 2019

FuTuRE OF RETAIl: 2019 FOREcAST

WHAT’S IN STORE?

Retail underwent a challenging 12 months in 2018, but all is by no means lost, and
changing consumer habits present new and interesting possibilities for retailers around

the globe. Here RLI takes a look at the future of retail and some of the key trends that
could make 2019 a year to remember for the industry.

he high street is not dead, it is simply changing and Many retail brands create interesting destinations for ECE’s latest innovative project is that of the ‘Digital Mall’,
adapting to meet the needs and new demands of clients to visit, whether these are permanent store or pop- which has recently won the European Innovation Retail
today’s connected consumer. Retailers need to ups, which help consumers immerse themselves in the brand Award 2019 of the German Council of Shopping Centers
Tembrace the convergence of channels – online and can help companies develop brand awareness. at an award ceremony in Frankfurt. The digital mall concept
and bricks-and-mortar stores and reimagine the store. As online purchases have taken the world by storm, brick- is one that will continue to grow in 2019, and ECE will
According to Dana Telsey, CEO and Chief Research and-mortar businesses have realised that they need to really use its concept as an online product search, which has
Officer at Telsey Advisory Group, yesterday’s amazing is step up to get customers to visit their stores in person. This been considered a unique technological innovation in the
today’s expected and retailers of today need to understand seems to have worked to some extent as according to a shopping centre industry, to step by step develop its centres
this vital point to thrive in the modern world. report from PwC, the past three years have seen increases into digital platforms. “With this innovation, we respond to
The consumers of today demand an experience, something in weekly bricks-and-mortar shoppers, from 40 per cent the demand of our customers for a seamless, cross-channel
that they can touch and feel. This can be seen throughout in 2015 to 44 per cent in 2018. This rise in physical store shopping experience and we extend the opportunities of
multiple demographics but has been made imperative by the shopping could well be down to the fact that consumers are the brick-and-mortar retail and the reach of our tenants in
emerging purchasing power of the millennial generation. looking for ‘more sensory and social experience.’ the centres,” says Philipp Sepehr, Director Digital Innovation
According to Telsey’s research, compared to baby Two examples of new innovative stores are Tangible & Analytics at ECE.
boomers, millennials have greater discretionary spending, are in the US and Vodafone in the UK. Tangible is a brick-and- Set to intensify in 2019 is the fight for lunchtime spending,
tech savvy and demand convenience and digital interaction, mortar concept that enables shoppers to touch and feel Paul Newman, RSM’s Head of Leisure and Hospitality argues
while baby boomers often rely on customer service. As a products that sold primarily online. Seeking to capitalise that established coffee chains have struggled against food
result, forward thinking businesses are adapting to provide on the symbiotic relationship between physical space and first brands such as Pret and EAT which have encroached on
an experience for their shoppers in store, from virtual fitting e-commerce, Tangible differs from similar ventures as it the high margin caffeine providers. Newer coffee chains such
rooms to yoga, and that is only the beginning. has no in-line concept, but rather it is a 300sq ft common as Joe & The Juice and Black Sheep have more differentiated
Whilst 2018 may have shown there are disadvantages area installation with see-through walls where each interior food offerings, but traditional coffee brands have failed to
of having an expensive and challenging store estate, having section features a different participating brand. adapt to growing demand for better quality lunchtime meals.
a physical presence does have its advantages. Consumers Meanwhile late last year Vodafone launched its new He expects the county’s largest coffee chains to fight back in
increasingly demand a more immersive, personalised customer hub on Oxford Road in London. The newly 2019 with innovative new menus, selective promotions and
experience when shopping, and destination and flagship opened three storey store goes beyond the traditional retail better loyalty programmes.
stores are able to exploit this. environment and offers everything from experiential zones What we know for sure is that the in-store buying
and hospitality to work spaces for businesses customers and journey is changing and will be in a state of flux in 2019.
‘click and collect’ zones – ensuring customers a quick service With the rise of omni-channel shopping, customers expect
even during busy periods. The new revamped store includes their experience with a retailer to move as fluidly from
everything from a work hub area for business customers and online to in-store as they do and this will only intensify over
interactive zones, to instant software and hardware repair area. the course of the year.

30 RETAIl & lEISuRE INTERNATIONAl FEBRUARY 2019