Paul Martin, managing director of Boxwood’s Business Insight Unit, presented a Global Retail Outlook at the 41st IFM conference in Paris last week. The award winning management consultancy outlined the key future trends and innovation in retail to an audience of over 1,000 of France and Europe’s largest retailers, suppliers and service providers.
The conclusions make stark reading for the global retail sector, outlining where the threats and opportunities are likely to be and how new entrants will shake up and ultimately dominate the market in as little as four years time.
Key findings include:-
- By 2017 Amazon will become the second largest retailer in the world and by 2023 will have overtaken Wal-Mart claiming the number one spot
- Progressing towards omni-channel retailing is fundamental for every retailer today. Do not underestimate the execution and how being successful requires a transformed business model
- Small box concepts (ie Tesco Express) are the fastest growing across the globe. Consumers are demanding convenience and proximity – retailers need to have a solution for this. Big box retailing (ie hypermarket format) still has a role to play but space utilisation and dwell time concepts have to be reconfigured
Martin said: “Competition and today’s pace of change requires real innovation. Retailers simply cannot afford to stand still, and those that are not constantly thinking about innovating store concepts, promotions, customer experience and the path to purchase will face challenging times. This is the time to be brave and think about tomorrow today, those who dare now really will win in the future.”