Wednesday, 14 June 2017

Retail prediction of 2017 – A Bird’s eye view

Published by Jimmy Simond on Wednesday, 14 June 2017  | No comments

That the tug-of-war between bricks-and-mortar stores and online retailers is unavoidable and is something that will last indefinitely makes the scenario in the retail markets interesting. Experts had predicted in 2016 that the retail sector is slated for upheavals and the reasons can be essentially attributed to two prominent causes, namely, behavior of the consumers and the manner in which the political scenario will take shape.

Need for space?

Although the run for the first place has been tricky and challenging but it cannot be denied that the stalwart Wal-Mart made giant strides as far as its online sales and business was concerned. More and more entrepreneurs are shifting focus for online sales and marketing campaigns as this could help them to curtail the costs of operating from a full-fledged bricks and mortar stores, the cost of which can be curtailed greatly. As such, entrepreneurs are also “re-evaluating” whether or not they actually need physical space to operate their business.

In fact, it is also being observed that the bigger as well as the sparingly known brands intend to reshape their destiny. And this they want to do by regaining control of their sales instead of entrusting the job to the third party retailers. Aside from the above changes in scenario, you can also expect the following changes to take place as 2017 comes to an end and it is quite likely that these very trends will spill over in the New Year too.

1. A budding digital divide

The fact that Amazon was on top of the charts as compared to other online retailers cannot be disputed. However, a very interesting trend has surfaced as far as online retailing is concerned. As per data provided by Slice Intelligence, a firm that is responsible for scanning the digital receipts of consumers, it was found that as compared to 2016, the number of shoppers flocking to online stores has increased by considerably. In fact, this is one trend that experts like Ken Cassar, the principal analyst anticipates too. Also, when it comes to major online retail players, it has been observed that they invest more in redesigning, refreshing, and staying updated as far as their websites are concerned. Aside from this, they make sure that the shipping process is prompt and faster.

2. Smaller players are hoping for sunny days ahead

The experts are also of the opinion that it is not just the bigger players that are reining the retail scenario but the medium and smaller players are playing their cards well.

3. Changing strategies

It is also being observed that bigger brands like Michael Kors, Coach, and Ralph Lauren usually sold their stuff through departmental stores. The reason being it is a less expensive approach and the risk involved is also low. However, these brands are not happy with the “promotional” attitudes of these departmental stores and are putting in all efforts to “dial back” these customers. In yet another instance, the majors Nike and Adidas are adopting policies that are bound to lure customers either to their bricks-and-mortar stores or invest online. In a new kind of marketing strategy, Nike is allowing its prospective customers to test their running shoes by allowing them to run on the treadmill before buying the product.

4. Shrinking number of stores

Another trend that is expected to be observed in the current year is that more number of stores is expected to downsize. Classical examples of the same include Sears and Claire’s. This is mainly due to the debt repayments that are to be kept in mind when companies like Claire’s rework their survival strategies.

Regardless of the scenario that exists in the retail landscape, another factor that will inevitably influence the same is the tax policies that will come into effect due to Trump administration with emphasis on border-adjustment tax.

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Amit Singh is a founder of he share his immense knowledge of Search Engine Optimization in this blog.


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