The post-recession retail landscape is likely to differ in many ways from what we experienced prior to the downturn. The changes are layered: retail itself has been altered by several factors, including the high number of companies going out of business, new technologies and the growth of social networking. Consumer attitudes and spending habits have also shifted dramatically -- and in some cases, those changes will last beyond the recessionary times.
Navigating these changes will be tricky, but if your business can address them you’ll have an edge over your competitors. In “Next year’s 10 great retail trends,” Michael Baker shares ideas about the Australian retail landscape that can be applied here in the U.S.
Some of the evolving trends you should consider in 2010:
- Mobility: The trend of researching and shopping online was moving full-speed ahead prior to the recession. Retailers who want to succeed today will need to be where their best customers are. If you don’t already have their email addresses, you’re already behind the curve. The next wave is mobile commerce -- which can be as simple as sending texts that alert interested clients about new products or special offers -- or as advanced as offering full shopping capabilities to fit small screens.
- Extra Tip: Before you plunge into the mobile wave head-on, shore-up your online platform. Jewelers of America members can take advantage of web development packages through JA’s partnership with Ideal Diamond Solutions. Learn more here.
- Brands 2.0: Most retailers have discovered that in tough times, consumers need choices, especially when it comes to price points. Designers are also clued-in to this trend. The key has been to offer these options, without undermining the brand. One way companies have achieved this is through secondary, more consumer-friendly brands. In an environment where consumers think before they buy, these lines offer the value of trusted brands, without the sticker shock.
- Extra Tip: If you haven’t already, look for ways that you can offer this type of secondary branding in your store. For instance, if you have a store-branded line that’s suffered in the downturn, look at how you can expand it to hit the sweet spot in current consumer spending trends.
- Location Upgrades: One of the toughest aspects of the recession -- the number of companies that have gone out of business -- can offer an upside for those who’ve survived. With vacancy rates high, this could be a good time to look at moving to a better location. However, think before you leap -- a great spot for new customers could be a bad one for the current, loyal clients who got you through the economic storm.
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