For ages, retail in its basic form has been reduced to three P's: people, products and places. However, since the appearance of the modern mail order service in 1861, people no longer had to be in the same location to shop. Still, the service failed to beat the convenience of buying from a local shop, which remains an unquestionable king of retail. But for how long? Ever-so-popular e-commerce may again threaten the position of a brick-and-mortar store.

Shopping gone digital

Designed to predict future trends in retail and encourage retailers to reinvent their customer interactions accordingly, the Future of Retail Report 2015 outlines the recent milestones in retail history. One of them is undoubtedly retail digitalization.
Before the digital era, retailers did not really need to evolve to be successful. However, roughly 20 years ago that notion completely changed. The emergence of online shopping paired with reliable shipping introduced an entirely new buying experience that could be both compelling and cost-effective. E-commerce poses a serious threat to traditional brick-and-mortar stores. The shift in shopper habits and expectations is reflected in statistics, with a growing number of consumers shopping online. Mobile devices enable customers to browse and buy anytime, anywhere.

While digital channels continue to evolve to include personalized recommendations, one-click payment options and on-demand delivery services, majority of stationary stores stick to the traditional model of retail, ignoring the very things that have set them apart for so long, namely people, products and place. Re-imagining and re-inventing retail is also about understanding that while these three aspects may no longer be essential, they continue to be competitive advantages.

Rise of a new Consumer

Another sneak peek into the future is offered by PricewaterhouseCoopers and TNS Retail Forward. Their joint report "Retailing 2015" confirms that the retail industry is becoming more complex and changing at an ever-increasing speed. One of the milestones of the upcoming year, the birth of a new consumer is an example of such change. The evolving consumer in the near future will not be easy for retailers to understand or master. The value proposition guiding their product purchases is changing; consumers will put heightened emphasis on personalization, look for opportunities where their input matters, and value product and service solutions. Consumers are increasingly proactive in their purchase decisions and selective about with whom they want to do business. Additionally, consumers will increase their focus on purchasing products from socially responsible and “green-
friendly” manufacturers and retailers.

When it comes to retail outlets, it will be no longer about “location, location, location.” In 2015 retail industry will be significantly different from that of today. The U.S. shakeout in conventional malls will continue with a throwback to neighborhood shopping centers catering to very specific tastes. Shopping will become more experiential; eating, being entertained and “living” the shopping experience will take on prominence. The global market will grow rapidly in our flat world, with markets such as China and India granting access to the world’s best retailers. By 2015, the retail landscape by country will be dramatically different from today. We envision a knowledge revolution in global markets where the successful retailers will be transferring their best retail practices from one territory to another.

Sources: http://www.psfk.com/2014/11/future-retail-2015-report-about.html; https://www.pwc.com/es_CL/cl/publicaciones/assets/retailing2015.pdf; Photo: http://www.nbcnews.com/