25-08-2012, 11:15 AM
Future of Retailing 2015
Future of Retailing.ppt (Size: 75 KB / Downloads: 47)
Forces of Change
Retailing 2015 will be a new ball game, with new rules, new roles, and new relationships - a whole new world.
Driving change will be a consumer zeitgeist unlike any other.
These events have conspired to produce the most uncertain business environment since the 1970s – an environment in which the world’s retailers and their suppliers will find it difficult to plan.
Compounding the challenge in the years ahead will be an increasingly inscrutable consumer who will be more difficult to understand, much less predict, than ever before.
Demographics will be less of a determinant. Lifestage will be less relevant. Lifestyles will be more idiosyncratic. Buying behavior will be more complex.
The road to 2015 will see an evolution in how retailers create value for consumers and shareholders. The efficiency era, which drove unprecedented industry consolidation and changed the face of retailing forever, is nearing its end.
The push is on into the promising era of the intelligent value chain, where smart technology and demand-based management optimization tools will enable the execution of tactical merchandising decisions based on real-world consumer demand.
Department Store Death Spiral. Department stores are caught in a vicious circle propelled by escalating competition from mass retailers and lifestyle specialists – more consolidation and retrenchment are inevitable.
Re-concept Rather than Remodel. Compressed lifecycles for products, retail concepts, and brands mean the days of the large, mass-merchandised specialty chain are over.
Smart Stores. Stores and store associates will get smarter as retailers adopt technologies to drive greater space and employee productivity. Over time, some smart store solutions will displace human resources with technology.
Retailers Act like Suppliers. As retailers grow and become more global, they will seek alternative sources of supply. By 2015, many suppliers will find their biggest competitors are their retail customers – and they own the shelves.
Suppliers Act like Retailers. Suppliers that survive the decade will become best-in-class category consultants as they take on an increasing number of activities that traditionally have been the responsibility of the retailer.