Euromonitor International’s Commerce 2040 series outlines a vision for how consumers might shop in two decades. This report focuses on how the competing forces that are reshaping retail will impact the future of the store. In particular, the shift towards e-commerce is forcing retailers and brands to rethink the purpose and use of stores. By depicting this long-term view, companies can take meaningful action today to adapt to the changing retail landscape in the digital era.
There are several competing forces at play that taken together will dictate how the retail industry evolves. These competing forces range from the role of humans versus bots in the commerce experience to whether consumers shop online versus in store to shifting power dynamics between retailers and brands.
Convenience stores will exist to sell impulse purchases and irregularly purchased convenience goods. In experiential centres, experiences will be cultivated around products that require more consideration, such as electronics or clothes.
A hallmark of the future store will be the ability to identify the consumer at check in rather than checkout. This will enable store associates to provide a more personalised and contextualised shopping experience. This could go so far as retailers and brands being able market to consumers based on their mood.
This level of personalisation will not be possible without data. As companies and brands seek to forge more one-to-one relationships with consumers by offering tailored experiences and recommendations, data will serve an ever more critical role in the shopping journey of tomorrow’s consumer.
The digital darlings of the early millennium rose to prominence by leveraging technology to introduce consumers to a new way of conducting business. This next stage of development will be slightly different in that it will require a greater overhaul of infrastructure and ecosystem partnerships.
Sales of new and used goods to the general public for personal or household consumption. Excludes specialist retailers of motor vehicles, motorcycles, vehicle parts, fuel. Also excludes foodservice, rental and hire and wholesale industries (Cash and Carry). Sales value excluding or including VAT/Sales Tax. Retailing is the aggregation of Store-based retailing and Non-store retailing. Retailing excludes the informal retail sector. Informal retailing is retail trade which is not declared to the tax authorities. Informal retailing encompasses (a) sales generated by unregistered and unlicensed retailers, ie retailers operating illegally, and (b) any proportion of sales generated by a registered and licensed retailer which is not declared to the tax authorities. Unregistered and unlicensed retailers operate predominantly (although not exclusively) as street hawkers or operate open market stalls, as these channels are harder for the authorities to monitor than permanent outlets. Activities in the illegal market, which is usually understood to refer to trade in illegal, counterfeit or stolen merchandise, are included within our definition of informal retailing. Activities in the “grey market”, which is usually understood to refer to trade in legal merchandise that is sold through unauthorized channels – for example cigarettes bought legally in another country, legally imported, but sold at lower prices than in authorized channels – will be included as informal retailing if no tax is paid on sale by the retailer. However if the retailer pays tax – for example on cigarettes bought legally in another country but sold at a lower price than standard – the sale is included within formal retailing. In relation to click and collect purchases (i.e. where purchases are made over the internet but picked up at store) where the sales data is attributed depends on where the payment is made: If payment is made in store, then the sale is included in store-based sales. If payment is made over the internet, then the sale is included in internet retailing.
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