With customers constantly raising their expectations of the shopping experience, retailers are upping their game in turn. New (and some not-so-new) concepts that came to prominence this year included IoT technologies, the opening of pop-up stores, social selling, adoption of omnichannel fulfillment and an increasing interest in innovation labs.
In this week’s Editor Q&A, the RTP team reveals what they saw as the biggest stories in 2015, and explains why these trends are important to the future direction of retail.
Debbie Hauss, Editor-In-Chief: I think the most significant retail story of 2015 is the shift from “why” to “how” when it comes to omnichannel strategies. Members of the retail community are no longer wondering what omnichannel is or why they need it. They want to know how they can implement it in the most effective ways. To that end, inventory strategies are in the spotlight. One executive at a major apparel retailer has highlighted the challenges around omnichannel inventory and is looking for solutions: “Who [which business unit] is paying and managing the in-store team for shipping online orders and who is funding the logistics associated with it?” Facing a problem of overselling inventory and being forced to cancel orders, thereby disappointing customers, this retailer and likely many others are on the hunt for the best strategies for future-proofing omnichannel inventory issues. I’ll be interested to speak with retailers and solution providers during the NRF Big Show to find out how they are addressing this challenge.
Alicia Fiorletta, Content Strategist: In 2015, it was really interesting to see so many retailers shift their mindset when it comes to embracing new technologies and tactics, and seeing potential challenges as new opportunities. In the past, retailers saw Internet-enabled phones as their number-one threat. Now, they’re creating personalized mobile experiences to drive in-store traffic and online conversions. The notion of “embracing disruption” really came to a head in 2015, and I think it’s going to become more imperative over the next year. I’m truly excited to see how retailers (big and small) embrace disruption and test new approaches to customer engagement, marketing and commerce.
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Adam Blair, Executive Editor: If The Graduate were being remade today, the one-word advice to Benjamin Braddock would not be “plastics” but “mobile.” 2015 was the year that mobile demonstrated, again and again, what a powerful force it has become in retailing, and in the life of consumers in general. From mobile’s 26% share of online sales over the Thanksgiving weekend to the fact that nearly two-thirds (64%) of U.S. adults now own a smartphone, the signals are clear: having a smart, comprehensive mobile strategy is now a retail business imperative. And that strategy needs to be flexible enough to adjust quickly, as mobile morphs into wearable technologies and expands further into the payments arena.
Glenn Taylor, Associate Editor: The holiday season put an exclamation point on 2015’s retail climate, highlighting the trends that had been brewing throughout the entire year. While the growth of both e-Commerce and mobile retailing had both been expected for the past few years, these channels truly showed their potential once Black Friday came along. While the brick-and-mortar store certainly isn’t going anywhere any time soon, it is clear that retailers in 2016 will need to adapt their strategies to further integrate usage of mobile devices into the stores. The fact is, consumers are using these devices more to browse and shop at any place and time. The retailers that win going forward will be able to demonstrate the ability to leverage their store location and offerings to cater to these shoppers’ mobile needs.
