There is a new trend in retail. The power shift has gone to consumers. The lines between offline and online has continually become blurred. Brands now concentrate on their physical stores rather than closing them because they are vital in brand building. These three takeaways were highlighted by an expert in retail at a recent seminar. The expert states that the retail landscape has changed considerably in just over a decade. In 2009, the top three retail giants worldwide were Walmart, Tesco, and Carrefour, but ten years later, the top three giants have now become Walmart, Alibaba and Amazon. This is because new competition is constantly disrupting the market and brands are focusing on giving consumers more power in their transactions. Retailers who are still in their traditional ways have no time to respond to these changes which have come with larger volumes and tighter margins for profits. Therefore, to survive, they are looking to merge. One example of the new convergence on consumer experience in retail is reflected in services like Netflix and Amazon Prime where consumers subscribe for TV streaming. It is projected that online growth will continue in the long term and presently is 20 percent of total sales.
- Some trends in retail are that power is now coming to consumers and the lines between offline and online channels are becoming blurred.
- Ten years ago the top three companies in retail were Walmart, Tesco and Carrefour but today only Walmart has remained in that position.
- Mergers have become the order of the day in retail as competition gets stiffer and larger volumes in trading and tight margins are the norm.
“Retail is reaching a tipping point in how shoppers are targeted with a move to consumer-focused transactions.”