Tag Archives: future of retail

Millennial Retail Blues

sales downWhen it comes to their sales numbers and their future predictions, are retailers “terrified”? An article entitled “An emerging American trend is terrifying news for Macy’s, Kohl’s, and JC Penney” suggests that they should be. Another one says, “Kohl’s is getting crushed.” Also, “Macy’s offers an ominous insight about American consumers.” Another piece (without a sexy title, sorry) details the decline of high-end organic grocer Whole Foods.

So, what’s the deal? Is retail in decline? Or is it a certain slice of retail that’s in decline? The answers, it seems, are maybe and definitely.

Once again, the arrow points straight at the Millennials – people born since 1980 or so. They are becoming the dominant purchasing force in the economy – and they simply have less money to spend. Their money is going toward RENT, which is very high right now, and toward personal electronics.

The money they have left over is not going toward a $40 shirt at Kohl’s or Macy’s, or locally sourced/organic/free range/sustainable/expensive salmon at Whole Foods. They’re going to Walmart instead.

So, this might be troubling news for higher-end retailers, but maybe a good thing that the younger generation (which will soon be calling the shots) is getting smarter about spending? Maybe? I guess? What do YOU think? Let us know over at the MindField Online Facebook page, and have a great weekend!

The Future of Shopping?

the futureWhen I think of “Future Shopping,” I think of George Jetson trying to give his wife a twenty, but she takes the whole wallet instead! Anyhoozle, there’s an article in the Wall Street Journal on the future of shopping entitled, oddly enough, The Future of Shopping. The basic nugget o’ wisdom goes like this:

Thirty years down the road, much of the change in retail is going to be driven by a complete reformulation of the relationship between how we make the stuff, how we sell the stuff and how we consume the stuff.

Here are some of the predictions:

Malls become “Alls”: I can remember our mall back in the 70s had not one, but two grocery stores in it. That seems ridiculous now but, apparently, it will be coming back. Aside from clothing, food and electronics, you will see “gyms and innovative fitness centers, medical services and even schools, grocery stores and luxury spas”.

Artisanal everything: Handcrafted clothes, furniture, foods, etc. “This is about the counter trend of being local. It is about a need to be different and nostalgic for things that are timeless and somehow pure.”

Highly personalized clothing: Super-precise tailored measurements for clothing made immediately by robots. They’re already doing it in Korea!

A Different Kind of “Mobile”: They’re doing this in Charleston SC already. There’s a restaurant on the well-to-do/upscale tourist part of town. They have long waits, so on weekends, this truck full of upscale ladies apparel/accessories parks outside the place to take advantage of the captive. (“Go ahead, honey; I’ll be in the bar.” – Me)

Are you seeing some of these already? Which ones? Let us know over at the MindField Online Facebook page!

Retail Stores Adapt for the Future

future_retail_scenario1I just read an article entitled “Mobile Increasingly the Only Tool Used in Purchasing Decisions”, which stated that mobile is increasingly the only tool used in purchasing decisions. And I thought, “Man! The headline really nailed it!”

Does this mean that “stores” are doomed? Not necessarily.

No one thinks physical stores are going away permanently. But because of the frenetic pace of advances in technology and online shopping, the stores that remain will likely offer amenities and services that are more about experiences and less about selling a product. Think: Apple Inc.’s stores. Associated Press

What kinds of things can we look forward to? Here are some highlights, with bonus dumb commentary!

Services: Stores will offer day care, beauty, and veterinary services, and so on. Sort of like Walmart does today, but more FUTURISTIC, I guess!

Convenience: Self-checkout, drive-thru pickup of items ordered online, etc. It’s my dream that self-checkouts of the future actually work properly at least half the time, which would be a 200% improvement!

Location-based marketing: This is happening now (we talked about it a while back) but will only increase. You walk into the store, the store recognizes your mobile device, and it sends you coupons for the things you typically buy. Also, things related to the things you buy (You like makeup? How about some cotton balls?”) Which is fine. Sadly, they get greedy sometimes, and it’s “You like makeup? How about a lawn mower? Snow tires? Term life insurance?”

Further integration of mobile devices: How about picking an item off the shelf, scanning it with your mobile, and walking out of the store with it. No need for checkout, just cross the threshold, and it’s charged to your account. Maybe, but half the fun of shoplifting is setting off the alarms!

So, stores will adapt. They have to! My question is: are you seeing any of these advancements in your local brick-and-mortar? Seeing any others? Let us know over at the MindField Online Facebook page!