An interesting thing happens when you read the new Retailing 2020 report from PwC US and Kantar Retail. You get the distinct impression that you've actually experienced many of the changes predicted for the years ahead.
The report discusses an increasingly polarized economic environment with fewer and smaller stores operating in an omni-channel world.
"Retailers will need to prepare for a wall-less omni-channel retail world, one where shoppers will come to expect a seamless brand experience online, in-store and across multi-media touch points," said Susan McPartlin, PwC's US retail & consumer industry leader, in a statement. "This multi-format portfolio combined with the proliferation of small, urban, alternative retail formats will pave the way for future growth, dismantling the mass homogenization and scale assumptions that propelled two decades of retail growth."
PwC US and Kantar see older consumers becoming more financially conservative than younger shoppers from the effects of living through several recessions in their lifetimes. Shoppers will be divided into two distinct purchasing nations — over fifties and under thirties.
"The demographic and income gaps between shopper segments are expected to widen creating more shopper segments with different expectations for product offerings and shopping experiences," said Bryan Gildenberg, chief knowledge officer at Kantar. "Retailers must do away with the 'one size fits all' approach and consider the ever-diverging needs of both the 'Have' and 'Have Not' consumers to remain viable in the future."
Discounters will continue to grab share of grocery at the expense of traditional food, drug and mass merchants. Annual growth for large chains in the years ahead will remain close to current levels. Roughly one-third of the increases will come through online sales.
One of the casualties of Retailing 2020 will be supercenters. Consumers will increasingly make use of digital channels purchasing products through their mobile phones, tablets and personal computers.
"Forward-thinking retailers should diversify format portfolios, test smaller footprints and offer niche products targeted to specific shopper segments," said Mr. Gildenberg.