If last year was transformational for retail, better hold on to your endcaps in 2018.
Assessing the evolution of the shopping experience and advances in IoT, Glenn Fodor, senior VP and information and analytics solutions chief for First Data, the global payments technology company, has come up with a list of five key retail trends for this year.
Here are his predictions:
Reduction In Retail Footprint: “Retail stores are getting smaller, and the ones that are getting it right are seeing a better revenue per square foot return,” Fodor said. “Smaller footprints force retailers to be smarter about inventory but also bring new flexibility, serving as a hub for online pick up and returns.”
Demand For Delivery: “More and more companies are introducing same-day delivery, either through third-parties, acquisitions or developing it themselves. The pay-off on delivery investments is significant,” he noted, “slowing the march of competitors and supporting advanced pricing, margin management, and incremental service fees.”
Rise In Rentals: “For consumers who want value and flexibility, rental and subscription services are the way to go. 2018 is looking to be the year for subscription services and rentals, as big brands dive in.”
Deals For Digital: “Retail and technology are converging now more than ever,” Fodor observed. “Unexpected partnerships between technology and retail companies are forming as competition increases, fueled by disruptive changes such as the rise of voice-ordering.”
Collaborative And Connected Commerce: “Increasingly, industries are working together to reach more households. From grocery to travel, auto to entertainment, brands are identifying partnerships that will make the shopping experience flow easier for consumers,” he said.