10 trends reshaping global retail

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Check out the top ten economic, demographic and technology trends that are converging to force changes in the future of retail space. Learn the key attributes required to future-proof retail places in response to these game-changing trends.

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Published in: Retail, Business

10 trends reshaping global retail

  1. 1. 1. Urbanisation and population growth: unstoppable demographic forces The staggering rate of global population growth and urbanisation is underpinning radical change: it is forcing us to be far more efficient and creative in how we use urban spaces, and is fundamentally changing retailer, investor and developer strategies across the world. 2. Multi-speed economic growth: opportunities with risks The multi-speed economic recovery is driving industry movements and strategies. It represents a big expansion opportunity for some retailers, enabled by Internet sales, which ‘don’t care about geography’; but ‘chasing the spend’ is not for all. 3. E-commerce = Everywhere commerce: channels become irrelevant in a seamless world Consumers want to access products wherever, however and whenever they want; retailers must provide a seamless, integrated strategy, with real choice, convenience and ease of access, or consumers will go elsewhere. The amount of information available (and sought) is leading to super- informed, knowledgeable consumers, but also to ‘choice exhaustion’, clutter and iandecision; the big challenge for retailers is gaining consumer ‘attention’. 4. Information explosion: ultimate knowledge and ‘choice exhaustion’ 5. Harnessing ‘Big Data’: opportunity knocks for retailers Consumers’ ethical and environmental idealisms are seemingly at odds with the technology-driven desire to own the next ‘best thing’, and ‘now’; how the retail industry responds is crucial. 6. Consumer ethics v. consumer desire: balancing responsible retailing and consumption Effective use of ‘Big Data’ will enable retailers to truly understand customers, what will attract them to a shop or retail place, and to respond quickly to their needs to entice them to purchase; huge opportunities exist, but getting it right is hard! 8. Pace of change: retailers need to innovate, create and exploit Propelled by technology and data, the super-informed consumer is increasingly taking control of the retailing process, demanding the best product, at the best price, efficiently delivered – until the day they can print their own! 7. Power switch: technology enables consumers to take control For retailers, the pace of competition and innovation has intensified, not just at a corporate level, where natural monopolies such as Amazon and eBay thrive, but also at a product level, where the length of time a retailer has to exploit sales from the development of new product is reducing rapidly (the temporary monopoly effect) Time is the new commodity for consumers. Shopper expectations are now profoundly different from a few years ago; consumers expect retail venues to be ‘destinations’, to thrill and excite, to have the latest and greatest products, but also to enable them to ‘escape and retrench.’ 10. Time, the new commodity: retailers and landlords competing for consumer time 9. Redefining space: reshaping the role of the store The role of the store is fundamentally changing, and what happens in the virtual world is increasingly influencing how we use physical space. For retailers, the key to keeping the consumer entertained is to integrate physical and digital experiences to provide an interactive and all inclusive in-store experience, combined with excellent service. Redefining Retail Places The role of physical space in an increasingly virtual world To discuss how these trends are impacting your markets, how resilience can be embedded within your physical space and how JLL can help you future-proof your strategies, go to the RRP website, or contact: Pacific EMEA Americas Aaron Ahlburn Director of Research, Americas +1424 2943437 aaron.ahlburn@am.jll.com Robert Bonwell   CEO Retail, EMEA   +44 7970 884 752 robert.bonwell@eu.jll.com James Brown Global Retail Research Lead                   +44 (0)7860 408 863 james.brown@eu.jll.com Greg Maloney CEO Retail, Americas +1(404)995-6315 greg.maloney@am.jll.com Jane Murray Head of Research, APAC  +852 2846 5274 jane.murray@ap.jll.com Kin Keung Fung Chairman Retail, APAC +852 2846 5001 kinkeung.fung@ap.jll.com Anuj Puri Global Retail Agency Board Chairman +912239851409 anuj.puri@ap.jll.com Colin Burnet Director, EMEA Retail Research      +44 (0)7713 386 083 colin.burnet@eu.jll.com Reshaping Global Retail www.jll.com/rrp Copyright (c) Jones Lang LaSalle IP, INC 2014 No part of this publication may be reproduced or transmitted in any form or by any means without prior written consent of Jones Lang LaSalle. It is based on material that we believe to be reliable. Whilst every effort has been made to ensure its accuracy, we cannot offer any warranty that it contains no factual errors. We would like to be told of any such errors in order to correct them.

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