By Stacy Krusch, Marketing Consultant
While consumer spending is holding steady, there is a structural change in the market that is driving retailers to evolve. “It’s access vs. ownership for Millennials,” said Dana Telsey CEO and Chief Research Office at Telsey Advisory Group, during the Tech Talk Fashion and E-Commerce Micro-Summit, hosted by the UJA-Federation of New York Fashion and Tech Divisions.
“It’s not what car can they own, it’s what product/service can they get delivered the fastest,” Telsey explained. And the focus on Millennials continues to increase as this audience (83 million) outpaces Boomers (75 million) who are catching up technologically.
Beginning with an omnichannel approach, the future of retail is tied to an engaging customer experience. “It’s more about personalization and customization than mass,” said Telsey. Brick-and-mortar isn’t going away, it’s evolving, she continued. While store numbers and footprints may be decreasing, having a physical space is still an important part of the overall picture.
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Predictions For Different Retail Segments
Telsey shared her predictions for several retail segments:
- Specialty and Department stores are in the process of reinvigoration while off-price is becoming more relevant to Baby Boomers and Millennials;
- Hardlines/home is where the growth is happening, with retailers like Perch who offer a more engaging shopping experience; and
- In Apparel, activewear is growing at 3x the rate of regular apparel, helped by the fact that activewear is interchangeable with weekend wear and is finding more space in customers’ closets.
Roundtable at TechTalk Fashion and E-Commerce Micro-Summit 2/22/16
