2019 - Retail Industry Trends
2019 is proving to be a transitional period for retail. As 2018 turned to 2019 the retail economy had to adjust to a lot of different factors both positive and negative. The economy overall was strong, the past holiday season smashed old records, however, the retail gains were mixed, there were some large-scale bankruptcies, and a lot of economic tensions. One factor that shone through all these elements was that consumers became much more powerful. The resilient labour market, an increase in disposable income, and growth in consumer confidence caused an explosion in 2018 retail sales. Despite the robust end to 2018, the signs are pointing to a more turbulent time ahead for retail.
To stay afloat during the potentially rough year of 2019 there are a few strategies that retailers can employ to stay competitive. Firstly, retailers need to re-evaluate customer loyalty. Currently many companies use a “transactional” loyalty. This type of loyalty means tiers centred on benefits; points, X-percent off, gifts, or mailers. The contemporary shift towards an experience-based model means that retailers need to start tapping into the emotions of their customers. Retailers should aim to make their loyalty programs as much about the principles they espouse as the value that the customer could save. They should connect their business to the consumer conversations of the day. Another consideration for customer loyalty is privacy. Retailers should develop privacy compliance road maps. If retailers have a plan in place that can not only lead to more personalization but to increase customer loyalty and feeling of safety.
Traditional retailers have begun to suffer at the hands of digital start-ups. These start-ups are out in force, and they’re presenting personalization, genuine engagement, and advanced offerings. They also have solid investment flowing which allows them to compete with the established market. To help give their business an edge, the traditional retail businesses should continue to push forward and seek guidance from specialists, Mindtrades for instance, for a new big idea, as every business’ problem will be unique, and start to combine business development and corporate strategy.
Traditional retailers must also learn from the digital start-ups by incorporating new budding technologies. Digitally transforming their businesses can lead to a number of benefits ranging from better access to data, to transforming operations, adapting to future trends, or reinvigorating their brand. They also shouldn’t be afraid to skip ahead to the latest technology, as long as they are willing to invest the time and energy to learn properly. Supply Chains are becoming a route for retailers to offer their customers diversified services. To speed up their supply chain, to make it more predictable, and less expensive is a rather challenging hat trick. To make these improvements, however, can help any retail business meet other challenges head-on. By developing supply chain strategies retailers can better sustain a long-term competitive advantage.
To weather whatever storm is ahead, retailers will require synchronization of their investments and of their data. They will require careful action in a changing future, and Mindtrades can offer sensible guidance through what can seem like a minefield.