Retailing 2020 and the Era of Personalized Marketing

The transition to digital shopping on the part of a growing number of consumers is good news for companies that do business shoppingmallonline. But this trend has serious implications for the rest of the retail environment. Analysts are already looking to the mid-​decade and end-​decade market to imagine which retail sectors will be thriving and what this means for marketing.

Between now and 2015, Kantar’s Retail Analysis sees the warehouse club channel growing 6.3% to reach $160 billion in sales. Only discounters, with 7.9% growth, which will bring them to $86 billion, and non-​store retailers, with 14.7% growth and a sales level of $192 billion, will exceed the warehouse club increase.  When looking at the period from 2015 to 2020, analysts project a non-​store retail increase of 11.7%, a growth rate that easily surpasses the anticipated 4.7% jump for all of retail during that time frame. Channels with weaker performances will likely be department stores, mass merchandisers and specialty stores. These shifts in shopping will give non-​store retailers about 12.3% of the total market, up from 5.5% in 2010. All other channels will shrink, except discounters and warehouse clubs.

At the same time, retailers know they’ll be targeting a polarized shopper base. The recession has left many consumers focused on bargain hunting. At the other end of the marketplace, luxury shoppers are buying again but they represent a small percentage of the total.

To succeed in this brave new world, analysts say  in-​store retailers can gain an edge by appealing to spontaneous shoppers and they'll use the 4P’s to improve marketing as follows:

  • Interactive product merchandising at store shelf
  • Interactive packages which communicate with smartphones
  • Fluid pricing based on specific or type of consumer
  • Promotions designed for specific shoppers at the time he or she is in the store

We’re several year away from some of these developments but enterprises that lay the groundwork now for the increasingly competitive environment can position themselves for success in the next decade.

[Source: Retailing 2020 – Winning in a polarized world. Pwc​.com. 2012. Web. 30 Jan. 2013] 
Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.