Global retail branding and sourcing expert Daymon Worldwide has released its eight ‘Global Retail Trends Predictions for 2014 and Beyond’ to help retailers successfully address the contradictory, challenging realities facing the industry in 2014, dubbed by US-based
Daymon as “The Year of Retail Contradictions.” “
Retailers across the globe are facing a more fascinating, challenging business landscape than ever before,” said Carla Cooper, CEO of Daymon Worldwide.
“We understand that decisionmakers in our industry are dealing with contradictions that are hard to reconcile.
“These include trying to successfully serve the different needs and preferences of both
the large aging population and the tech-enabled Millennial group; managing physical stores
while tending to the explosive growth of non-store based retail; and meeting consumer
needs for convenience in products, services and formats that allow them to quickly
get what they need while also enjoying the customized retail experiences they’ve come to
expect and demand.”
The 2014 trends include:
1. Big vs. Small: The Redefinition of the Hypermarket/Supercenter (Megatrend: CULTURAL ECOLOGY) – This year we’ll see a notable shift from the hypermarket/supercenter culture we’ve seen in the last decade to a retail landscape where smaller formats prevail, including dollar stores, convenient superstores, express stores, discounters and small specialty stores.
The supercenter is not going away, but these smaller formats will become real category killers, stealing share from the supercenters and mass merchandisers that have triumphed in recent history. This is driven by increasing urbanization, a rise in smaller households, and consumers’ changing notion of convenience.
2. A Sharing Retail Economy (Megatrend: CONSCIOUS RAISING) – Consumers have figured out that owning bulky, rarely used items is both expensive and unsustainable, resulting in a
growing number of sharing, renting and reusing options at retail that will play out in (non-food) retail concepts and experiences.
3. The Muddled Middle (Megatrend: CURRENTCY) – The Middle Class is changing, with contrasting implications globally. In the US, there’s a shrinking Middle Class, creating an
even greater gap between the rich and the poor. Retailers with low-price positioning,
such as discounters like Aldi or Dollar Store, will grow along with more premium retailers and specialty stores with a differentiated proposition, like Whole Foods.
4. The War on Obesity Escalates (Megatrend: B-WELL) – When childhood obesity rates stopped rising in the U.S. earlier this year, it was headline news. Very soon, we’ll see companies and governments begin to take even more aggressive steps to promote healthier diets, from the rise of high-quality “cook and assemble” meals to stricter guidelines such as ‘NO GMOs’ becoming the cost of entry in retail.
5. The Kitchen Has Left the House (Megatrend: ALWAYS ON) – With shopping trips being more mission-based and less about stocking up, grocery stores will become the kitchen themselves. With the continued growth of QSR, snacking as meals and component cooking like heat-and-eat (versus scratch cooking) on the rise, how consumers cook and eat will look very different in 2014. Retailers will need an even closer relationship with their customers in order to provide relevant solutions to meet this growing trend.
6. Local Becomes ‘Personal’ – (Megatrend: YOUniverse, ALL FOR ONE) – The idea of “locally-sourced” products will change from foods and products sourced in the immediate area of each market to offerings available throughout the broader community, city, state and country. It will be more about personal interaction, authentic experiences and interest versus just geography.
7. Retailers Amplify Branded Experiences ( M e g a t r e n d : JOYment) – The idea of experiential retail is nothing new, but with the amount of cross-channel shopping and the projected growth of E-commerce, brick and mortar stores will be forced to provide shoppers with even more unique experiences, and not just in flagship locations.
We’re already starting to see this play out in retail with Lululemon’s Experience Lab in Vancouver and Anthropologie’s soon-to-be launched lifestyle village in Devon, PA, complete with retail, hotel and foodservice. For grocery, food theater like cooking demonstrations and sampling must become a greater part of the shopper experience.
8. A New Way to Service the Aging Population (Megatrend: YOUniverse) – The growing aging
population is going to have a key impact on many markets, especially in countries like the US
and Japan. In 2014, we’ll see global retailers take a new spin on reaching this demographic by developing products and solutions to help them maintain their active lifestyles.