Future of retail report predicts mobile rise decline will hinder amazon’s ambitions
(NEW YORK, NY – November 20, 2017) – PSFK’s Future of Retail report was released today by the business intelligence platform. As part of the research, a quantitative survey was conducted with 400 retail professionals. The results reveal that 61% of respondents believe that by 2020, shoppers will value experiences over direct commerce and 59% think that consumers will exchange their personal data for heavily personalized services and product offerings. By the year 2020, 68% of retailers will be investing in data tracking, collection and management and 55% for in-store experiences.
The findings also showed that mobile retail’s share of revenue will grow by 10% between now and 2020, and brick-and-mortar retail will decline by 10%. The most surprising result was that retailers also expect the share of revenues through desktop internet to drop too—by 7%.
“Offline shopping is booming overall but the imminent monumental change is that the place of transaction will switch from the store cashier to the shopper’s phone. Recognizing that retailers can create new experiences that feed off this shift to mobile, Amazon could get seriously challenged when people have fewer and fewer reasons to visit their website through their home or work computers,” said PSFK Founder & President, Piers Fawkes.
PSFK’s President of Research and Strategy Scott Lachut analyzed the findings and concluded that: “Today’s highly connected shopper doesn’t think in terms of physical, online or mobile. They simply want to shop with their preferred store or brand how and when they want and enjoy the best experience possible when they do. Which means that retailers and brands must break away from the silo-ed approach that assigns different teams and strategies to each of its channels, and take an integrated view of its customers, operations and stores.”
With its latest report, PSFK applies this unified vision to the reinvention of offline retail, exploring how the best of digital—convenience, personalization and data-rich insights—can transform and enhance the brick-and-mortar experience. By starting with a foundation of digital intelligence, retailers and brands can activate (and monetize) the physical store in entirely new ways, including building an experiential strategy with shoppers through personalized, AI-powered and mobile-enabled systems.
“Now shoppers can benefit from the same level of recognized service they receive online, and companies, in turn, can monitor their behaviors to constantly refine merchandising and marketing. Common points of friction—checkout, stock availability and fulfillment—become streamlined, ensuring customers always get exactly what they want in the most convenient way possible and businesses benefit from increased efficiencies,” said Lachut.
Fawkes added: “Brick and mortar locations must continue to fulfill the role of delivering products and services to consumers in a timely way. But the wave of the future is a blended retail framework – experiential retail underpinned by an invisible layer of technology-driven services to connect with shoppers in a meaningful way to drive sales, encourage repeat engagements and build brand affinity. Our new industry report shines a light on the opportunities in the retail industry and provides a lifeline to struggling traditional retailers and the brands sold within them.”
The Future of Retail 2018 outlines how companies can transform their stores into experience centers that extend their supply chain and digital commerce platforms, creating mutual value with a focus on shopper experience. Download the report today or come immerse yourself in the findings at our Future of Retail 2018 sessions on Jan 16-17, 2018. We will be hosting a mix of talks, work sessions and trend-tours on key strategies that retailers and brands should adopt to succeed in the changing marketplace. Pioneering speakers will also take the stage to share practical insights that highlight how to leverage the findings of the report.
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