Retail: Is Retail Growing or Dying?

John Krautzel
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Retail markets have undergone serious changes during the last decade, and the future of retail may seem uncertain, depending on which set of statistics you read in any given month or quarter. Typical brick-and-mortar stores, including large malls and shopping plazas, seem to downsize or go out of business regularly, while the push to online sales and venues grows each year. Retail managers and owners must strive to understand how emerging trends may show signs of how the future of retail will continue to develop and use that information to ensure that their companies remain competitive in the digital age.

 

The signs of the decline of retail are all around. Empty storefronts in downtown areas and malls are some of the telltale signs of a bleak future for brick-and-mortar retail. The blogosphere and many Internet news networks are alight with stories about how technology, including mobile apps, is changing the face of retail. Some industries, such as software and gaming development retail stores, have been hit especially hard by the conversion to digital media and downloads. Because companies do not regularly share their digital sales figures, it can be hard to gauge whether this is in line with retail industry trends in other markets or if it is an anomaly that doesn't directly affect the future of retail sales in nonsoftware venues.

 

The future of retail is not entirely bleak, however. A recent article shows that retail sales have grown in some months, signaling that the end of traditional retail may still be decades or further away, if it will come at all. Falling gas prices and the availability of new energy sources at home may help fuel a boom or recovery of traditional retail markets in the near future. However, retail industry trends are hard to predict.

 

Savvy retail owners and managers are looking deeper into reports on the future of retail to learn exactly what drives consumers in today's increasingly digital world. Many have made the switch to showroom-style retail outlets, which allow customers to take merchandise for test drives and order in store for at-home delivery. This requires less retail space and still gives customers the hands-on experience with products they want. Others have taken a note from experienced online retailers and created customized marketing measures that take into account the needs and tastes of each buyer when developing promotions and loyalty programs.

 

Adaptation seems to be the key to survival in the constantly changing retail scene. At this point, it isn't clear whether or not traditional retail is dying, but those companies that integrate the best of both worlds into their business plans are likely to have an advantage in the marketplace. The future of retail isn't set in stone, and savvy retail experts are posed to help set the standard in the coming years.

 

(photo courtesy of freedigitalphotos.net)

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