New shopper economics to drive retail future
SAN DIEGO While shoppers, retailers and suppliers look to counter growing complexity with simplicity amid the changing economic environment, they simultaneously are embracing new measures.
With the new healthcare legislation will come coverage for about 32 million people who currently are uninsured. In order to meet consumers growing needs, retailers will be thinking about how they can expand into the healthcare system as the lines between retail and health care further blur over the next four to five years.
That was one of the messages that Bryan Gildenberg, chief knowledge officer of Kantar Retail, had for attendees at Sunday mornings session, titled A shared ownership of the future: Activating the new economics of the shopper at the shelf.
There already is evidence of this shift in focus (e.g., CVS acquisition of Caremark and the growth of retail-based clinics), and Gildenberg believes this trend will continue and will drive a number of innovations in the years ahead.
Gildenberg also stated that in the next five years the industry will see continued growth in non-store retail, so retailers and suppliers should keep in mind that they will begin to see a volume shift from shoppers under the age of 30 years.
Wrapping up the presentation, Gildenberg highlighted several keys to retail success through 2020:
- Post-modernism: Pressure on expansion forces a change in focus to maximizing cash flow from existing assets;
- Optimization: The search for incremental returns and efficiencies starts with improving what we already do; and
- Precision: Step change in efficiency/growth from more focused and targeted initiatives.