The future of retail is not about technology it is about rapid change and adapting to shopper trends or competitive forces. Technology plays a big factor, but in a supporting role, one that strengthens achieving big goals but it is not the goal itself
Even in support, however, technology is essential to success and the 9th Annual RIS Shopper Study, “Retail 2025” connects the dots between shopper trends, technology and retailer responses that close gaps or open new doors to opportunity.
The underlying mission of the RIS Shopper Study is that all technology strategy should be customer-centric (aimed at achieving customer benefits) and there is no better way to find out what customers want than by asking them. So in this study, we asked 5,000 consumer what they like, dislike and would like to see in their shopping experiences.
There are too many takeaways too fit in this space, so here is a short list of the major shopper megatrends that retailer should pay attention to today and into the next decade.
5 Shopper Megatrends
- Today’s brick-and-mortar experience is dying and will be replaced by smart stores that convert the shopping journey into a convenient, tech-driven and immersive experience. While the economy is booming right now and many retailers are posting the strongest numbers they have had in years, the truth is there is still room for concern about the in-store experience.
Over the last five years, 31% of shoppers say they do less shopping in stores and more shopping online or on smartphones. Also, 55% of consumers say they do less shopping in shopping malls over the last five years.
This trend does not bode well for brick-and-mortar retailers, who need to reinvigorate their in-store experiences to avoid losing a generation of shoppers.
- Amazon Prime is the most successful loyalty program the retail world has ever known, which changes the center of gravity for all retailers. 67% of all consumers in the study are members of Prime or in households that possess membership. In a related datapoint, 66% of shoppers primarily go to Amazon.com when they search for products to buy. No other retailer comes close to matching these numbers.
Does that mean Amazon has locked up the consumer marketplace and the game is over for other retailers? Definitely, not. However, it means that retailers must do more attract loyal customers and keep them coming back again and again. The only retailer that comes…