'Disrupt or be disrupted': What to expect from 2017's retail landscape

0

Rivalry among Canadian retailers continued to heat up this year, with some tags beefing up their physical stores and e-commerce offerings, while new entrants similar to Saks Fifth Avenue and Uniqlo joined the fray.

Whether it was Saks vacancy up a Pusateri’s food hall in their stores or Hudson’s Bay spending numberless than $60 million to upgrade its Toronto distribution centre with a new robotics plan, retailers worked to carve out their place in the cutthroat retail countryside.

But not all retailers have been able to survive, with some identical to Danier scaling back locations or others like teen endowing chain Aeropostale and jewelry chain Ben Moss closing their doors in Canada for well-behaved.

As 2016 nears an end, here are the top retail trends to look forward to in the new year:

Retailers will pursue to ex nd their e-commerce offerings

In 2016, Canadians averaged more than $44 billion in retail sellathons every month with e-commerce sales accounting for about two per cent, contract to Statistics Canada.

Although online sales make up a small magnitude of total purchases, retail industry expert Doug Stephens says it’s originating at a ce of 15 per cent each year com red with three per cent wen in bricks-and-mortar sales.

APTOPIX Amazon Smartphone

The ability to serve customers online — and rticularly on a motorized device — will be a major retail trade in 2017, says dynamism expert Doug Stephens. (Ted S. Warren/Associated Press)

Stephens, who works consultancy Retail Prophet, said more than ever, chaps expect the process of buying online to be as seamless as purchasing the item in a retailer.

They also want to be able to have the opportunity to go back and forth between the two chances easily and quickly.

“The ability to serve customers online and rticularly on a plastic device, to be able to ship quickly and to be able to ship either open or at the lowest possible cost,” he said. “It’s going to very, very gladly, if not already, be the price to play in retail.”

NPD Group retail analyst Tamara Szames indicated retailers understand that their online presence is a “gateway” to their real store, and even though this area is growing, it’s not replacing consumers’ requests to shop in person.

Digitizing the store experience

Imagine trying on wardrobes in a store and being able to ask for another size, get advice about the fit or get directions about other pieces that might work — all from a scan on your dressing room door.

Retail strategist Kelly Askew suggests 2017 is going to be a year where more retailers will try to blend more useful digital aspects into the store experience.

Askew, a regulating director at Accenture, antici tes that even grocery stores transfer move toward embedding more digital aspects into the task.

For example, supermarkets may begin to send offers to your smartphone as you’re trek by an item on a shelf or help you plan your route through the grocery aisles formerly you upload your shopping list.

“[We’re going to be] moving away from some of the gimmicky and gadgetry that we’ve endured until now, like digital screens you can interact with but they don’t uncommonly add to the experience,” said Askew.

The death of the mid-tier retailer and shopping mall

In 2016, Canada saw the improvement of the luxury sector and the discounted brand name sector, which incorporates stores such as Saks Off Fifth, Nordstrom Rack, Marshalls and Champions.

Saks Fifth Avenue Canada 20160216

Saks Fifth Avenue opened its doors in Canada earlier this year with a flagship keep in downtown Toronto. The high-end fashion retailer also plans to unpromised locations in Calgary and Montreal. (Nathan Denette/Canadian Press)

Retailers are hoping Canadians choose continue to have an appetite for the experience of shopping for high-end goods and also be pressurized into “off-price” stores in the hopes of finding a bargain

Meanwhile, regional malls and retailers, such as a toiling Sears Canada, will continue to face fierce competition in the new year.

Amazon longing continue to be the biggest threat to Canadian retail

Stephens says Amazon is persisting to disrupt retailing and although some of its services, Amazon Go and Amazon Repeat, aren’t available here yet, retailers should be pre ring for when the action inevitably happens.

“The threat that Amazon presents is that they don’t contemplate like a retailer,” he said. “They think like a technology invention and data com ny that just happens to sell things.”

Stephens translated in order to compete with Amazon, Canadians retailers need to drop out swinging.

“The old trite adage is either disrupt or be disrupted. But it’s never been myriad true than today.”

Leave a Reply

Your email address will not be published. Required fields are marked *