With Christmas rounding the corner, retailers had geared up to meet the growing demands of eager customers, as part of the annual Christmas sales routine. While there is no doubt that online stores have posed tough competition for brick-and-mortar businesses, the aforementioned demand has sparked a fair degree of innovation in the retailing segment as well. The result is a pro-consumer market that is focused on offering the best shopping experience at the best possible prices.
This festive season, our market analysts have pinpointed the top 10 trends that have set the tone for retail systems and Christmas sales alike, through 2017 and beyond.
#Trend 1: Outstanding in-store experience for better sales and customer loyalty
In an era of online shopping, the only way in which retailers can make their mark is by providing an outstanding in-store experience. When analysts at Technavio talk about improved in-store experience, this doesn’t necessarily mean something as upscale as smart dressing rooms. It can be anything that exceeds the seamless experience provided by online stores.
A perfect example of enhanced in-store experience is the mobile tote program of homeware retailer Crate + Barrel. Customers can browse the shelves using store-sponsored tablets, add items to wish lists, and seek the help of sales associates in gathering their wishlist items.
#Trend 2: Immense investments in omnichannel platforms
As omni shopping becomes the new normal, it is only natural for retailers to invest heavily in omnichannel platforms.
While platforms like Facebook and Instagram are being employed to allow customers to place orders and pay before picking up in-store, retailers are employing Snapchat to provide behind the scenes pictures for customers. Such strategies not only help retain existing customers, but also build brand image and enhance loyalty.
#Trend 3: Shoppers prefer specialty stores over department stores
One shopping trend that picked up speed at the beginning of 2017 and has come full circle is the preference for specialty stores over huge department stores. Millennials, who lead the charge of the Christmas sales and form the bulk of the New Year shoppers, prefer buying well curated selections of artisanal products and local wares that are easily available in the specialty stores.
Also, unlike department stores, the staff at specialty stores are more knowledgeable, and the experience gained here is highly personalized. Keeping these changing preferences in mind, several big names in the industry like Macy’s, Nordstrom, and Bergdorf Goodman have revamped their stores and added elements borrowed from specialty stores to cater to the millennial demographic.
#Trend 4: Retailers use technology to their advantage
In 2017, retailers have embraced technology to create a seamless omnichannel shopping experience for customers. Many retailers have already rolled out store specific apps that add loyalty points and make occasions like Christmas sales even more fun and pocket-friendly.
Data collected from these apps is used in a very intelligent manner to revamp stores and offer better goods and services. Further, in recent times, brick-and-mortar stores have adopted technology wherein as soon as targeted customers are within a specific radius of the store, they get the latest updates on offers and new products.
#Trend 5: Mobile payment solutions have replaced cash and cards
In the US alone, around 70% of mobile users prefer mobile payment solutions, which explains why most retailers have implemented mobile POS systems, third-party options like Apple Pay, or custom payment apps like Kohl’s Pay.
The continuous expansion of Samsung Pay and Android Pay has also set the tone for Christmas shopping this year, which has turned increasingly contact-less at the check-out counter.
#Trend 6: Shop at Christmas sales, enjoy same day shipping
In order to remain in the competition, retailers have started to offer same day shipping. Christmas is a time when customers might not want to physically visit the store, but still want their goods delivered instantly.
Our analysts found that around 60% of shoppers prefer their orders to be delivered within 3 hours of placing the order. Thus, even though same day shipping might not be the most practical option for retailers, the customer is king and same day shipping is a guaranteed way of fulfilling their needs and keeping them happy.
#Trend 7: Adding an entertainment element
Retailtainment, or bringing entertainment into the retail business is yet another trend that has redefined shopping and sales this season. Retailtainment works on the basic assumption that incorporating lifestyle experiences like coffee shops in the store can lead to better engagement with customers. The belief is that the longer time customers spend in the store, the more likely they are to purchase the shop’s offerings.
One of the best examples of retailtainment is the “sit-and-stay” concept store opened by Barnes & Noble in California, New York, and Virginia.
#Trend 8: Data makes entry into retail sales
From supply chain management to the post-purchase stage– retailers have adopted data in a big way. Our research shows that data-backed decisions play a critical role in outperforming competitors. Data collection and analysis not only enable personalization of customer experience, but also help retailers predict demand, keep stores stocked with the right merchandise, and minimize waste throughout the supply chain.
#Trend 9: Third-party solutions come into play
Apart from mobile apps, the involvement of third-party stakeholders has changed the game for retailers in 2017. The huge demands laid out by customers are a tall order that many retailers find difficult to fulfil single-handedly. It is in this context that third-party players come into picture.
Third-party solutions can be in the form of apps, services, social media platforms, or a different reseller altogether. The point is to make the shopping experience for customers as easy and hassle-free as possible.
#Trend 10: Quality and transparency still rule
Shoppers now prefer to build a ‘sense of identity’ with the products and brands they use. It is for this reason that transparency in the production process has become so important. On occasions like Christmas, families prefer to be associated with brands that have a ‘clean image’. This explains why companies like Everlane and Warby Parker showcase the inner workings of their manufacturing process to their clientele. This radical shift has won them more loyalty and increased their customer base.
In Summation- 2017 has seen the addition of a number of innovative elements in the retail business. The trends defining Christmas sales are just a glimpse into how this industry will expand to meet the ever evolving demands of the consumers, through Christmas 2018 and beyond!
