The pundits have consulted their crystal balls and have zeroed in on trends poised to shake up, redefine and drive the retail industry — and how we shop — in 2015.
Here’s what they foresee:
1. Amazon Will Finally Face Its Match/Matches
“While Amazon still clearly rules the digital shopping roost, other retailers are finally getting their digital businesses in order such that shoppers don’t always have to think Amazon first,” writes Wendy Liebmann, CEO of WSL Strategic Retail in her report, “Trends From the Edge.”
Mass-market behemoths Walmart and
This holiday season “they worked hard to match Amazon’s intensity for price, speed and creativity. Both leveraged their advantage of enabling shoppers to order online and pick up in store.”
What’s more, Macy’s, Bloomingdale’s,
“Now I’m not suggesting that Amazon has lost its luster or is about to disappear from the ether. [CEO] Jeff Bezos’ ‘everything store’ has changed shoppers’ expectations for just about everything. It has redefined service, selection, convenience and the overall value experience for one out of two American shoppers who regularly buy from it, according to our How America Shops research.”
“For the last 20 years it had the digital shopping world virtually to itself,” she said. “Today, however, that is no longer the case.”
2. Retailers Will Exploit The Mainstreaming Of The Health And Wellness Trend
“What began as a fringe movement of people interested in organic food, yoga and shopping at Whole Foods and Trader Joe’s has turned into a national trend, driven by a broad constituency of consumers of all incomes, ethnicities and genders,” Liebmann said.
That’s translated into a cross-section of shoppers seeking healthy choices beyond traditional health categories, such as food, beauty, home, active wear and technology.
“That creates opportunities for lots of brands, categories and retailers,” she said.
3. Beacon Technologies Will Come Into Their Own
Amid the accelerating innovation of in-store mobile technology, beacons — sensors that are embedded throughout a retail store’s digital touch points like shelves, signs and product displays, and can interact with mobile devices using low-energy Bluetooth signals — will continue to gain momentum in the next 12 months.
That’s because retailers are increasingly looking to “personalize the in-store shopping experience to compete with online retailers,” said Ben Pivar, retail leader, North America, for consulting, technology and outsourcing firm Capgemini in his outlook on retail trends for 2015.
4. Retailers Will Leverage Customer Data Beyond E-commerce And Marketing
Retailers will mine new ways to leverage advanced shopper analytics earlier in their store planning processes.“Localization will be a big focus for retailers as they look to manage inventories more effectively, increase revenue, and improve margins by creating the right product assortments for the right stores according to local customer demand, store attributes, and product preferences,” Pivar says. “Advanced analytics will also play an increasingly critical role in the design and development of new products, initial pricing decisions, and demand forecasting.”
5. Online Surge Could Steamroll Store Closings
The rise in e-commerce may result in smaller stores and more store closings. For example, “American Eagle plans to close 150 stores, while Abercrombie & Fitch expects to close 60 each year for the next few years,” according to the Bloomberg Intelligence 2015 Outlook for the Retail Industry.
6. Retailers Will Woo Shoppers With Food
As online shopping has captured consumer mindshare, retailers must find new reasons to lure shoppers into stores. More retailers are recognizing that a way to a shopper’s heart is through his/her stomach.
Some examples: Macy’s Herald Square flagship in New York City is expanding its food and beverage offerings, from a full-service Italian restaurant Stella 34 Trattoria to several Starbucks, notes Liebmann. Meanwhile, Urban Outfitters has added restaurants to its Manhattan and Brooklyn stores, and Uniqlo has added a Starbucks to its Fifth Avenue Flagship.
7. Apparel Sales Might See Only Slight Gains — Save For One Bright Spot
Apparel retailers' sales may increase in 2015, but “the lack of a major new fashion trend will likely prevent a sales surge,” Bloomberg Intelligence predicts.
However, “the shift in consumer spending toward athletic, performance-based apparel, and away from fashion-related merchandise, have accelerated sales and profit margins at retailers such as Under Armour.”
