Posted on 07/31/2015
By Fran Lapham, Senior Account Manager / Strategy Consultant
Eyebrows raised at the future of retail during the economic recession in 2008 in conjunction of the rise of e-commerce. However, market research firm eMarketer projects e-commerce will grow beyond $3.5 trillion in the next 5 years, with $1.672 trillion spent online this year. Here are four reasons why retail’s on the rise again:
With the rise of e-commerce, the shopping landscape has inevitably evolved to better meet the expectations of today’s consumer. However, a study shows that it’s far from time for shopkeepers to lock up. Rather, commercial properties are thriving more than ever. The International Council of Shopping Centers (ICSC) attributes this to favorable demographic trends, the synergy of between e-commerce and in-stores sales, improved center appeal and the fact that 94 percent of total retail spending is still done in stores.
The National Retail Federation expects that retail sales will increase 3.5 percent this year. In addition, retailers have added an average of 23,000 jobs a month since the beginning of 2015.
“There's a good chance retailers will continue to help pave the way for improvements in economic activity,” said NRF Chief Economist Jack Kleinhenz.
Club and warehouse superstores have grown popular in recent years, attracting customers with their wide selection and bargain prices. The industry is currently led by three players – Costco, Sam’s Club (owned by Wal-Mart) and BJ’s wholesale club.
A study revealed that consumers who shop both online and in person spend an average of up to 3.5 times more than a single-channel shopper. Having both an online website and brick-and-mortar gives the retailer different ways to interact with its shoppers. According to the study, a well-executed omni-channel strategy includes giving the shopper the option to buy products online and pick them up in-store as well as buy products in-store for home delivery.