New year, new trends? Not really, because most retail trends have been with us for quite some time. A few exciting results from the joint study “How we will shop in the future: Trends in retail 2025” by KPMG, EHI, HDE and Kantar TNS on shopping behavior and consumer expectations, I would like to take a closer look in this blog post.
I discussed the following and many other topics with other industry experts at the TW Summit in December. It became clear to me once again that success requires the will to change and the courage to progress. And: the focus must be on people – even in a digitalized world. Transformation, cultural change and consistent action are the key to remaining fit for the future. It is time to actively shape innovation and rethink standards. Brick-and-mortar retail must become active to maintain its position as the strongest sales channel. After all, 90 percent of retail sales are still generated in-store.
Employee competence as the key to success
One of the most important issues in retail is and remains sales staff. Customers’ specific expectations of retailers are diverse and changeable. A major challenge for every retail company! The aim is to meet or even exceed the very heterogeneous expectations of customers. Satisfied customers are loyal customers, dissatisfied customers stop buying or go to the competition. The skills, motivation, and commitment of employees are therefore essential and must be kept up to date, developed and promoted. Training and further education as well as personnel development and management are key fields of action for successful retail companies.
What role does store design play for retailers in 2025?
Retailers are facing two major developments: Firstly, it must emphasize its special added value in terms of look, feel and service. Secondly, it must expand digital services in the direction of omnichannel and turn the store into a service point.
A decisive factor in creating a personal shopping experience at the point of sale (POS) is store design and visual merchandising to stand out from the online competition. Cluttered sales areas are out, instead, customers are looking for more clarity with a high emotional value. Modern sales strategies, both offline and online, should aim to make it easier for customers to make a choice. This also includes addressing target groups with targeted product ranges and brand mixes. Brick-and-mortar retailers thus become shopping consultants with the advantage of direct personal contact.
Not only the presentation of goods at the point of sale (POS) and an attractive brand image are decisive competitive factors. Consumers also expect a free choice of shopping channel, which is why the boundaries between brick-and-mortar stores, the web and mobile are becoming increasingly blurred. In-store returns, in-store orders, and click & collect are important services in the context of omnichannel concepts.
One thing is certain: with the linking of online activities and stationary measures, omnichannel services must already be considered an integral part of stationary store concepts during development and implementation. This requires intensive collaboration between experienced shopfitters and IT specialists. Award-winning implementations of contemporary stores can be found here, for example Konrad Knoblauch. This is likely to change the business model of brick-and-mortar retail fundamentally. It could become an offline and online networked system at all levels, offering customers a holistic shopping experience across the entire customer journey.
Which media mix is right for me?
New communication solutions are putting retail marketing under pressure. Performance marketing, targeting, and real-time advertising are just some of the buzzwords of the current hype. The fact is, however, that retailers today achieve the highest return on marketing investment (ROMI) with their print media, especially flyers. Digital developments are important, but tried and tested systems must not be abandoned. Retailers should examine which formats are relevant, worthwhile, and cost-effective for them. Ultimately, it should not be a question of either/or, but of both/and, as this is the only way for retailers to increase media value creation. They will not be able to avoid expanding the media mix to include new media, especially mobile media.
Only through a skillful combination of proven and new measures can brick-and-mortar retail maintain its position as the strongest sales channel and successfully meet the challenges of the digital world. I would be happy to support you in integrating innovative retail concepts into your sales strategy. Feel free to get in touch with me.
PS If you would like to find out about further trends and read detailed results, you can download the entire study free of charge here.