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CB_R_store_of_the_future_2013.pdf. SN4 Blog. Consumer business companies are struggling to understand the changing consumer behavior.

SN4 Blog

For some it has meant new opportunities, some have lost customers and some have had both sides of the coin. When competition gets hard and business economics start to weaken, the reasons are said to be in inadequate investments in online business, heavy cost structure, high salaries or inflexible labor markets. Usually there lies more than one reason behind the downturn. However, there’s one root cause – forgetting the customer centricity.Quite often people say that personal service in branches and stores is diminishing because of online stores and digital services.

There are many studies pointing out that consumers are searching for information in internet to back up the purchasing decisions. The online information provided by companies has less impact on purchasing decisions. Typical conclusion would be that online purchasing will grow and the meaning of physical stores will diminish. How European and UK online sales will grow by 2018: Forrester. European online retail sales will be worth €233.9bn (£189.6bn) by 2018, thanks to compound annual growth of 12% a year between 2013 and 2018, a new study suggests.

How European and UK online sales will grow by 2018: Forrester

Forrester’s European Online Retail Forecast 2013 to 2018 suggests that online grocery sales will see the fastest growth over that period, growing by 16.3% a year to overtake consumer electronics and become the second-largest online category in Europe by 2013. Clothing will remain the largest online sales category through 2018, growing by 11% a year. In the UK, internet sales will grow from €45.9bn (£37.2bn) in 2013 to €71.0bn (£57.6bn) in 2018, or 9.1% a year, as the proportion of sales made online grows from 12% in 2013 to 15% by 2018.

But the fastest growth will come in southern Europe, where Italian and Spanish super shoppers will emerge and the proportion of sales made online will grow to 4% and 5% respectively. The attraction of online shopping, says report author Michelle Beeson, lies in the broader product assortment. Retail Forecast for 2018 - Centre for Retail Research, Nottingham UK. Retail in 2018 - Shop numbers, Online and the High Street The Centre for Retail Research published its analysis of how UK retailing will have changed by 2018 on 28 May 2013, entitled Retail Futures 2018 forecasts that by 2018: Total store numbers will fall by 22%, from 281,930 today to 220,000 in 2018.

Retail Forecast for 2018 - Centre for Retail Research, Nottingham UK

Job losses could be around 316,000 compared to today The share of online retail sales will rise from 12.7% (2012) to 21.5% by 2018 or the end of the decade. There will be a further 164 major or medium-sized companies going into administration, involving the loss of 22,600 stores and 140,000 employees. UK retailing has the highest proportion of online retail sales, so what happens here is being closed watched by foreign observers as Britain becomes a test bed for retail innovation.

Key catalysts for the looming retail crisis: Consumer spending has increase by 12% since 2006 outstripped by retail operating costs (including rates) which have risen by 20%. UK is facing a crisis. Store Closures. The future of department stores. While South African retailer Woolworths’ proposed takeover of the David Jones department stores added impetus to David Jones’ shares, growth prospects for Australia’s department stores industry remain conservative.

The future of department stores

Over the past five years, the department stores industry’s revenue has contracted at a compound annual rate of 1.8 per cent to total $18.7 billion, according to a new IbisWorld report. Profit margins have fallen to represent 5.8 per cent of revenue in 2013-14, and this year’s growth prospects do not look much more promising, with revenue estimated to rise by only 0.9 per cent.

“Despite improvements in overall economic conditions, consumers remain in a frugal frame of mind,” IbisWorld Australia GM, Karen Dobie, said. The trend for deleveraging is continuing, which means ongoing pressure on discretionary spending.