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4 significant transformations
over the past decade.
THE RETAIL INDUSTRY HAS UNDERGONE A SIGNIFI-
CANT TRANSFORMATION OVER THE PAST DECADE,
AND IT CONTINUES TO EVOLVE FAST.
In 2019, the market will be defined by emerging technologies that
change the way customers interact with their favourite brands, a shift in
preferences, and the emergence of new battle lines for e-commerce.
Let's look at five trends that will shape retail in the year to come.
1. The Glass Box and Brands-as-a-Culture
More and more, customers are shopping with their emotions instead
of their wallets. Indeed, millennials’ changing preferences and attitudes
regarding corporate responsibility, social consciousness, and more have
already impacted how retail brands present and position themselves.
The trend has resulted in brands having to equate their internal culture
with their exterior identity.
Companies are increasingly engaging consumers outside of traditional
shopping parameters and becoming cultural figures. This trend cuts
both ways, however, as this new measuring stick can also result in
unintended consequences.
Companies will have to consider the image their brand conveys to the
world, and work to create cultures that match customers changing
values and world views.
2. Making E-Commerce Shipping Faster
E-commerce continues its march toward becoming the most popular
shopping medium across the board. In September 2018 the sector ex-
panded by 11.4%. Today, most major brands have an online presence,
and they all offer comparable prices. Even stores like Amazon and
Walmart have become largely homogenous in this regard, so retailers
seeking to differentiate themselves have found other avenues to deliver
value to consumers.
A recent study found that the amount of time people are willing to wait
for free shipping has dropped from 5.5 days in 2012 to 4.5 days on
average. So cutting down on shipping time is vital for any e-commerce
business looking to stay afloat.
Importantly, this trend is set to continue well into 2019 as brands evalu-
ate new ways to differentiate themselves from an increasingly saturated
crowd.
3. The Rise of Experiential Retail
The old model of in-store retail strictly focused on products being
sold. However, consumers have slowly but surely been moving away
from strictly shopping for products, instead seeking a more engaging
experience. The trend has been driven largely by millennials and their
preference for experiences over things.
Even so, simply remodelling a store isn’t enough. Nearly 3,800 stores
are expected to close their doors by year’s end, and the brands that
do survive will have done so by creating engrossing experiences. The
emergence of virtual reality, augmented reality and improved mobile
technology will continue to push retail brands to add layers and new
experiences to their traditional retail models.
4. Multi-Channel Is the New Normal
One of the interesting contrasts of the current retail model is that de-
spite their alarming closure rates, retail stores still play a key role in the
sales process. Nevertheless, it has transitioned from the primary point of
sales to being part of a broader retail strategy. Instead of a single touch-
point for consumers, the trend in retail over the past few years has been
to widen the net that brands use to catch leads and convert them.
This is largely a result of the changing methods consumers employ to
make shopping decisions. BigCommerce’s 2018 Omni-Channel Retail
Report found that only 11.8% of Gen-Z shops on Facebook, while
nearly 25% of Baby Boomers shop on the social platform. Millennials,
meanwhile, prefer to buy products they discover on Instagram and
Snapchat. This calls for deep integration across all channels, including
websites, marketplaces, social media and brick-and-mortar.
Multi-channel is vital for captivating consumers and keeping them en-
gaged from first impressions to the eventual point of sale. Focusing on
providing excellent service across sales channels will pay big dividends in
the coming year.
The latest trends in retail are driven by a combination of an evolving
technological landscape and the shifting preferences of consumers
as demographics start to skew younger. By embracing these trends
and preparing for them, retailers can look to 2019 as another positive
opportunity to grow.
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