Page 35 - February 2020

FUTURE oF RETAil: 2020 FoREcAST

Green Room’s ‘Retail Trends 2020 Report’ suggests that Uninterrupted commerce - From social media to search
as we move into 2020, we’re likely to see more retailer engines, consumers can shop just about anywhere online and
marketing activities becoming truly responsive, and in real- the process is becoming more seamless than ever before.
What Does to improve customer interactions, AI will also help businesses long-established big-name department stores has folded
Death of the luxury department store - A string of
time, many activities will be driven by AI. Aside from its ability
under staggering levels of debt and bankruptcy, which begs
in targeting new audiences across social media platforms.
Research from ‘The Future 100’ report by Wunderman
the question: what does the future of luxury retail look like?
The Future Thompson Intelligence shows some of the key trends in Next gen retail spaces - With much of their lives spent
2020 to be the following:
on social media, millennials regard design values as being
of paramount importance—and they have high design
Ethical edits - Online luxury marketplaces are elevating
expectations on behalf of their offspring too.
ethics as well as aesthetics when curating their collections.
The super-convenient superstore - Chinese grocery
Anti-excess consumerism - As scepticism of influencers
Hold? and awareness of environmental damage rise, shoppers giants are diversifying, developing a hybrid retail model to
appeal to a wider range of lifestyles.
are consciously stepping back from the ledge of excess
Meanwhile, looking at the market from a development point
consumer culture.
AR(etail) - Retail experiences are being reimagined by advances
“Of all the property sectors, retail has experienced the highest
in augmented reality (AR), creating new windows for discovery. of view, Colin Brooks, Managing Director of Realm commented:
Whilst the retail industry is still in the midst of one of Subscription goes east - Subscriptions are no longer just levels of change in recent years. This year was no exception,
and I highly doubt 2020 will see the pace of change slow.
for news and gyms. The ecosystem for a subscribed life may
its most important transitions as it adjusts to all the be most advanced in Japan, where you can now subscribe This has proven how outdated the UK’s approach to retail
to everything from bar drinks to hair and beauty treatments, property asset management has become and how archaic it
changes in technology and consumer expectations, the cars, suits and even regular stays in charming rural homes. is in comparison to the more flexible models adopted but our
New shopping worlds - From streaming channels to European colleagues and in the outlet market.
sector continues to surprise and adapt. Over these two virtual landscapes and games, immersive retail has reached As the world moves into a new decade of technological
pages RLI takes a look a closer look at the retail sector new heights for the next generation of shoppers. advancements and engagement opportunities, brands who
will have the properties to truly prosper in the future are
New beauty playgrounds - As experience culture cuts a
and what could be on the cards for 2020. swathe through retail, there’s perhaps no sector better suited ones who recognise now that the best return on investment
to a hands-on moment than beauty. No matter how alluring a
comes only from investing in genuine human relationships
product might appear online, there’s no substitute for consumers with their customers and keeping these strong in a modern
being able to test out shades or try a new texture IRL. world of technology.
he main talking point of retail in 2019 remained Other suggestions include ‘Create the store of the future – now’,
the transformation of the industry, as e-commerce a point that retailers must provide the type of brick-and-mortar
continues to grow and store-based retail shrinks. The experience modern customers desire. This can include localised
T latest research suggests that globally, e-commerce inventories, in-store automation, and equipping associates with
will account for 30 per cent of total retail sales by 2024. concierge apps that combine real-time online access to products
It’s important to remember that while this is a number on and information with human customer service.
the rise, it highlights that in-store retail is not going anywhere, it Finally, Deloitte suggest that companies should ‘Digitally
is that its role is changing in the eyes of consumers and retailers enable the enterprise’, saying that a personalised experience,
need to continue to adapt to this to survive and flourish. highly interactive engagement, and convenience in all shapes
Professional services network company Deloitte has and forms require superior digital capabilities. In 2020, retailers
recommended some critical steps retailers should follow as need to consider implementing leading-edge technologies such
we move through 2020. They suggest that retailers ‘Make it as augmented reality (AR), virtual reality (VR), and 5G network
convenient’ because with the convergence of supply chain, technology anywhere in the enterprise they can help improve
digital technologies and other innovations, convenience is operational efficiency or enhance the customer experience.
becoming a much more important piece of the equation. They While the majority of sales still happen in physical stores, customer
suggest retailers adopt smart merchandising strategies, such expectations are increasingly being set by the experiences they
as creating micro-brands aligned to specific lifestyle needs of have online. There’s a huge opportunity for brands and retailers to
shoppers and augmenting product available with resale. bring these standards to the offline world in the right way.

34 RETAil & lEiSURE iNTERNATioNAl FEBRUARY 2020