Five Megatrends That Will Impact Retail and Foodservice
|Dean Landeche | V.P. of Marketing , Retail Solutions
Emerson Commercial & Residential Solutions
View our most recent E360 Webinar, “Retail and Foodservice 2025: The Future for Customers, Operators and Facilities.”
Grocery retail and foodservice sectors are currently undergoing a significant transition in the way they conduct business. Driven by a digital revolution, rapidly changing consumer expectations and the demand for convenience at every touchpoint, operators are devising new strategies to stay competitive and keep customers engaged. While some of these changes are already in progress, others are just beginning to take shape.
To get a clearer view of the outlook for these dynamic markets, Emerson recently invited Zandi Brehmer, consulting practice manager of innovation for Euromonitor Consulting, to present insights from her research at our 22nd E360 Webinar. Brehmer’s presentation was rife with relevant information, particularly about how these developments will impact future retail store and restaurant design and infrastructure.
With that in mind, what follows are Brehmer’s top five megatrends in these markets.
- Digital shoppers. Today, three out of four households in the U.S. own a smartphone, accounting for 47 percent of purchases and a forecast for $1 trillion in sales by 2018. Retailers need to engage consumers through their mobile devices with options to order/pay, and potentially even mobile apps where opportunities exist to provide real value to customers.
- Focus on convenience. The urbanization of the U.S. population continues, with 83 percent of Americans living in urban centers, and 65 percent of global consumers are looking to simplify their lives. New business models — such as just-in-time delivery, click and collect, and basic replenishment — are emerging to provide convenience improvements and help consumers save time.
- New retail formats. The size of traditional U.S. grocery stores has continued to shrink over the past 10 years. With shoppers faced with ever-increasing options, new formats are challenged to be more thoughtful. At opposite ends of the spectrum are value- and premium-based outlets, while the mid-market retailers are taking a hit. Specialty small-format convenience stores will continue to emerge as “grocerants” blur the lines between retail and foodservice.
- Experiential retail. As product offerings become all too similar, it’s the shopping experiences that will differentiate one retailer from the next. In fact, 78 percent of U.S. millennials would rather spend money on a desirable experience than on goods, while 39 percent of global shoppers like to browse, even if they don’t need anything.
- Omnichannel proficiency. Retailers will need to provide a seamless way to facilitate sales anytime and anywhere for their consumers, including the methods discussed herein. Even online retailers are opening physical storefronts to round out omnichannel opportunities.
The conclusion: business as usual is no longer an option. Operators will likely need to overhaul their store layouts to meet the expectations of every type of customer via better segmentation of functional areas such as parking, checkout, order pick-up, dining area and kitchens.
To learn more, view this webinar in its entirety.