Retail Transition Brings Opportunities For Industry Players

The transformation in the retail sector has brought good news with signs of prosperity emerging since late 2017. The overwhelming holiday season was a clear indicator, which not only justified the growth of the economy but also lifted the outlook of the retail sector. The economy has been gaining from more confident consumers, who are willing to spend, as the labor market remains strong and incomes continue to rise.

This favorable consumer environment raised the hopes of retailers, who are looking to benefit from collaborations, taking more risks and being innovative. Clearly, retailers coming up with new ideas to create a more customer-centric experience are poised to grow in today’s market.

The retail trends emerging after the solid holiday bash reveal that consumers will continue to spend throughout 2018. This calls for another eventful year ahead, where consumers will seek more convenience, personalisation and speed, and retailers will continue to bring in newer ways to provide a robust customer experience.

The Nation Retail Federation (NRF) revealed that retail sales for January were as strong as the holiday season backed by an improving economy. Retail sales in January rose 5.4% year over year, following a 5.1% unadjusted year-over-year growth in holiday sales during November and December.

With consumers feeling good about their financial health and consumer spending reflecting steady growth, the NRF predicts retail sales for 2018 to improve between 3.8% and 4.4% from the 2017 level. Notably, retail sales were up 3.9% in 2017 compared with 2016. Further, online and other non-store sales are likely to witness growth of 10-12% as the definition of retailing continues to evolve.

That said, let’s take a look at the trends that are expected to rule the retail sector in 2018.

Retail Trends This Year

The retail sector will witness intense competition among store formats, channels and players. Consumers will gain from a slate of increasing options as retailers continue to reform their businesses with both online and in-store operations.