RetailWire/Dechert-Hampe Study Results: What’s Next at Retail?
What’s the next big (or
small) concept that will rock retailing? That was among the questions asked
in the newly released RetailWire/Dechert-Hampe report, Retail
Formats in Transition, the first in a series of forward-looking studies
entitled RETAIL:NEXT. (Click to download the Executive
Respondents were, for
the most part, upbeat, with 54 percent looking for the retail industry
to experience modest or better growth over the next three years. The most
bullish segment of the 228 individuals interviewed for the study was retailers.
A full 65 percent of merchants responding are looking for moderate growth.
Less than half of manufacturers, 45 percent, felt the same way.
The study found that
a number of factors will influence upcoming store format development in
the future as the economy improves. Consumers will increasingly be drawn
to concepts that offer convenience, service and a better shopping experience.
Source: RetailWire/Dechert-Hampe – “Retail Formats in Transition” – Nov/Dec, 2008
Concepts seen as having
the best chance for success in the future included quick/fresh small format
grocery (Trader Joe’s, Fresh &
Easy, Marketside, etc.) and experiential stores,
such as that operated by Apple.
Other retail concepts
that respondents said would achieve success were mission focused (OfficeMax
Mini Mart), consumer-centric (Best Buy), outlets targeting an audience
based on ethnicity or age, lifestyle stores (Outdoor World) and home delivery
services (Peapod, etc.).
the current push, concepts driven by innovative technology, including virtual
stores (kiosks), automated merchandisers (Zoom, etc.), are predicted to
be less successful. Others that respondents believed would face major challenges
included pop-up locations, on-campus stores and specialty category (cookware,
Those outlets given little
or no chance for future success included drive-thru stores such as Dairy-Mart
as well as extreme mall concepts and occasion stores.
The “RETAIL: NEXT – Retail Formats in Transition” survey was fielded
in November/December, 2008 by Dechert-Hampe Consulting.
It was conducted as an internet survey covering the RetailWire community
and other industry participants. The survey results are a composite of 228
total responses. The respondent population breaks down as: 32 percent manufacturer/vendor;
24 percent retailer/wholesaler; 31 percent services/research/consultant;
13 percent agency/other.
Based on the study results, and your own prediction of where store formats
are headed, which retail operators have the best handle on where the
market is going and what consumers will be looking for in the next few