The Future of Retail
I believe all executive teams of every major retailer have a war room with these issues being debated and discussed.
1) How big of a store do we need in 5 years? I believe the average size of a store will be smaller. This is being driven by a couple of factors. The rapid expansion of the dollar stores have taken “trips” away from the big box retailers. Consumers are getting more of their fill in needs taken care of from these very convenient and low price options. The other factor is Amazon. The extreme convenience of the expansion of same day delivery of general merchandise and grocery is taking significant trips from the big box retailers.
2) What does our experience look like? There has to be a compelling reason to come to the store beyond just product. What services can you offer? Can you provide new ideas for consumers? Can you partner with another retailer to have joint solutions?
3) How do we customize our assortments? How can you customize your solutions that can’t be found anywhere else? What role does personalization play? How many exclusive products should you have in your assortments?
4) What is the role if AI? (artificial intelligence) Does AI check out consumers? Does AI provide shopper creative ideas? Does AI replace sales associates?
5) How many banners do we really need? Retailers that have multiple banners are asking the question about consolidation and editing of multiple banners.