9 Significant Trends in Consumer Retail Canada in 2015
It’s time to peer ahead into 2015 since we’re now right into it, and note the major retail trends that will define 2015.
Retail gurus and prognosticators are pointing to a change in the retail customer experience in 2015. Brick and mortar retailers will have to do more for the customer and that means optimizing the instore experience.
That’s because online retailing is gaining steam and customers are being presented with quite an array of retail options. Omnichannel retail is rising. And, with the demise of Target this year, there will be more opportunity ($2 billion) for all the other retailers to grow revenue and generate new customers.
Overall, Canadian economic growth might not be strong however Ontario should do well, if the price of oil remains low. And it’s not expected to rise up anytime soon. A cheap loonie will drive up exports and our own consumer spending. Products in Ontario will be cheaper to buy and that should keep inflation low, mortgage rates low, and give Ontario’s economy a big boost (exports to the US).
Here’s my top 9 Retail Trends for 2015:
- Health & wellness sector to grow: from spas to supplements to organic produce, to beauty products, and new medical treatments, baby boomers will spearhead the billion dollar growth in health and wellness. Given the cost of poor health nationally, I’d expect the government to chip in on this trend too just to take credit.
- Mobile – this one is driven by the millennials, but older consumers are catching on to smartphones, accessories, wearables, apps and social connectivity. There’s a Bluetooth connection too as retailers learn they can increase awareness, trial purchase, and customer loyalty in the store by reaching customer’s smartphones.
- Click and Pickup – will grow in popularity as consumer’s want their products now. As big retailers perfect this distribution process, it will become very popular.
- Social Networks – Social will grow and offer more functionality. More companies are building in shopping functionality in their Facebook and Pinterest pages. Social grows in importance in company’s marketing mixes.
- Countering online competitors – Retailers will use new tactics such as pop up stores, offering coupons, flash sales, food & drink, and freebies to get people back into stores. Social media will be used to promote in-store events.
- Customer experience – much more effort will go into discovering and delivering a more engaging customer experience instore. That might include in-person demonstrations, digital video displays, RFD or bar code activated mobile interactive apps, Small retailers too may be tempted to improve their instore experience too to engage their customer more and stay top of mind.
- Customizing product selection for local markets – Big data is helping companies know more about their local customers and they’re carrying products and brands they’re more interested in. Retailers will consolidate more of their sales feedback and social media feedback and other sources to build a more exact view of their local market’s preferences.
- Prices Falling – Cheap imports will encourage consumers to buy more and buy differently than before. Increased profits of Canadian retailers and manufacturers should encourage them to spend more on marketing.
- More Instore Buying Decisions – this trend has been growing lately and sales will be won not on TV, print or Internet, but on the battles at POP where impulse purchases rule.
Rapid economic and technology changes are sure to create some interesting times in retail this year. Those who had their displays, and instore strategies geared up should do well.