Retailers are pushing the boundaries of innovation. Euromonitor International’s annual New Concepts in Retail report highlights how these efforts are reshaping the retail environment. This edition explores innovation across three key areas: Rethinking the Store; Digital Engagement and Shopping; and Social and Environmental Responsibility. These three themes emerged from trends expected to have the most influence on retail in the near term.
This report comes in PPT.
Societal, consumer and industry shifts are converging to reshape retail. Within these broader shifts, there are several competing forces at play that, when taken together, will dictate where retailers will look to innovate and how the industry will evolve in the future.
Continued expansion of the digital channel requires retailers to reinvent their bricks-and-mortar space. Supporting digital fulfilment, testing out experiential shopping and reducing physical selling space are adaptations seen in response to this channel shift.
Online customers keep raising their expectations of the shopping journey. Now, companies are racing to establish themselves at the forefront of digital transformation. Digital shopping and engagement remain top strategic initiatives, with virtual technologies playing a big role. To date, AR and VR have been some of the most-used technologies.
Retailers must go beyond providing quality products to now also showcasing their corporate, social and environmental responsibility credentials. These strategies are coming to life through eco-friendly packaging, circular business models like renting and reselling, ethical production, services for underserved demographics or partnerships with minority-owned businesses.
Technology continues to break down barriers, leading to the rise of digital touchpoints as well as challenging the store’s role. These shifts are reflected in the strategic priorities of retailers. To remain relevant, retailers must identify how the competing forces will impact their part of the retail world and then conduct scenario forecasting to map out their strategic direction.
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.See All of Our Definitions
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