Sure, there are many rumors surrounding retail’s demise. Having said that, these rumors are largely exaggerated. According to Deloitte, in 2017 alone retail sales improved by more than three percent. The GDP, to compare, grew by just over two percent.
Nonetheless, there are some significant changes to which retailers need to adapt and understand.
There is both good and bad news.
The Good News
Over ninety percent of retail sales still take place in your good old-fashioned brick-and-mortar stores. Despite digital retail being projected to grow nearly twelve percent, in-store sales are also projected to grow by almost two percent. This is fantastic news!
The Bad News
Sure, traditional retail may certainly be facing a devastating apocalypse or, at the very least, a huge transformation.
Why is this?
Historically, shoppers have been split into two explicit groups: high-income consumers and then everybody else. While eight out of ten Americans’ incomes have remained the same since 2007, the cost of living has gone up significantly.
Furthermore, technology has played a huge role in increased costs.
So, what does this mean?
Well, according to a recent study, eighty percent of buyers have less money to spend on retail store items, such as clothing and accessories.
Courtesy of Corporate Business Solutions experts, let’s take a look at four proven ways that your store can succeed during the retail apocalypse.
Don’t Cater to Everyone
According to that same study by Deloitte, there are three types of retailers:
- Premier retailers that deliver value via premier product and experience offerings;
- Price-based retailers that deliver value by selling at the lowest possible prices and clearly communicating that proposition to customers
- Balanced retailers that deliver value via a balance of price and/or promotion.
Based on the information above, know who you are and deliver it properly.
Prepare to Go Premium
There are many opportunities for small retailers in the premium category. High-income consumers not only spend more money, they also tend to patronize more retailers. Think about this one.
Think Psychology
It’s easy to become infatuated with the differences between Gen X and Gen Z. However, shopping tendencies are based more on the income level that on generational behavior. In other words, a consumer’s economic status has a much greater impact on their shopping habits than you may think.
Establish an Online Strategy
If you don’t already have a strong digital presence, the time is now to start building one. If you’re not ready to sell online, which you should be, solidify your online marketing and advertising strategies. This will help you attract your target audience.
To learn more, visit CBS-CBS.com.