Top global retail trends in 2016
2016-02-16 | by Smollan
As the pressure on the economy continues to grow and the influence of technology on consumer behaviour, we will see the following trends emerge in reaction to these changes.
1. Consolidation of major players
In a climate of falling market share, high-profile buying alliances and mergers are a means for key players to maintain margins and boost scale. The increase in the formation of buying groups across the globe will lead to tougher negotiations with suppliers as retailers become more powerful.
2. Smaller stores
The convenience channel had one of the fastest rates of growth in physical grocery channels over the past five years. Planet retail predicts that we will see leading players develop smaller convenience concepts with smaller product ranges that are tailored to specific neighbourhoods with more innovative product offerings.
3. Health and wellness
Health and wellness is one of the fastest growing categories, which consumers are now driving into various store formats. We are expected to see co-ordinated private label ranges, dedicated health and wellness areas set aside in store, health-focused store concepts and loyalty card schemes to influence shopper behaviour.
4. The demise of discount
Over the next few years, it will become increasingly difficult to distinguish discounters from mainstream grocers. Discounters are beginning to adopt more upmarket strategies, by having larger stores with higher service and staff levels, featuring more fresh produce and premium ranges. While mainstream grocers are increasing their private label and discount ranges.
5. Simplification in an unstable global economy
2015 saw many leading retailers issue profit warnings or experience a sharp reduction in margins. Many retailers are now looking to protect their margins by focusing on their core offering, simplifying their customer-facing proposition and taking a more cautious approach to internationalisation.
Source: Planet Retail. 2016. 5 key trends to watch in 2016. http://www.planetretail.net/NewsAndInsight/Article/150207