US retail will grow, and digital will in influence over half of US retail sales. We expect that total US retail sales, bolstered by strong consumer confidence, will continue to grow: Since 2010, annual growth for total US retail has ranged from 2% to 5%.2 We forecast that US online retail sales will comprise approximately 14% of total US sales in 2018, and, more to the point, that digital touchpoints will in some way impact more than half of total US retail sales. 3 in 2018, retailers will become bolder about weeding out underperforming stores, renegotiating or selling real estate for more efficient and flexible footprints, testing experience centres, and leaning into the blended physical/digital customer experience.
Make customer needs priority No. 1, then work backwards to deliver that. taking a page from the Amazon playbook, the savviest retailers will focus on growing around the needs of the customer first and foremost — rather than solely those of shareholders. Not everyone has the luxury of delaying quarterly earnings and pro ts, but we do know that improved customer experience improves revenue growth.Witness also retail heavyweight Walmart , which is investing in everything from curbside pickup to in-home delivery to higher-end online-only apparel brands. in finally ending its digital feet, Walmart can now compete much more forcefully with Amazon, Costco, target, and others.
Sharing economyEd Bussey is chief executive officer at Quill
Recent research from PwC predicts that the sharing economy will be worth over £250.52bn by 2025
. We’ve already seen the sharing economy revolutionise the transport and hospitality industries, and 2018 could see a similar impact on the retail space. With millennial and Gen-Z consumers now placing less importance on ownership, fashion start-ups like Girl Meets Dress in the UK operate using a rental model, whereby users can borrow luxury clothing for special occasions – a cheaper, short-term alternative to buying outright. Similarly, In Denmark, Vigga allows parents to borrow quality baby clothes, rather than buying, to reduce waste. Brexit woes, coupled with a rise in financial insecurity among young people who still want the experience of luxury items, could help contribute to the sharing economy gaining traction in the retail sector in 2018.
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