Retail spend to hit £377bn by 2022
Retail spend is expected to rise to a massive £377 billion by 2022, according to a recent report.
Discretionary income is expected to rise as future wage increases bring relief to everyday households, helping the retail sector and increasing average retail spending.
Retail analysts Conlumino and retail property company Hammerson have released a report entitled ‘The Reshaping of Retail’, in which it states that retail sales will grow more rapidly as the number of younger consumers increases, and more modern ways of shopping become popular.
David Atkins, CEO of Hammerson, explains that economic concerns are encouraging a change in the way people combine technology and shopping. He said: “The retail environment is changing more quickly than ever.
“The digital revolution is having a profound effect on the way people shop, and how retailers operate. We’re entering a new era of buying behaviour and one of the Considered Consumer.
“This is a change in mind-set to the pre-recessionary times.
“Online, and particularly the use of mobile devices, will play an ever more important role as part of the multichannel mix and help improve the shopping experience.”
Multichannel retail, known as showrooming, is also becoming more and more popular as the technology era continues to reign.
By 2014 it is expected that almost 69% of consumers will use multichannels to enhance their shopping experience. These various channels include online stores, mobile stores, mobile app stores, telephone sales and any other way of dealing with a customer.
The report also predicts that m-commerce will become a sales channel in its own right. Mobile retail rates are increasing every year and currently account for £2.9billon. By 2022 Hammerson expects this will rise to a staggering £53.9 billion, just over a quarter of all retail sales.
Of course the increase in multichannel retail unfortunately means that traditional high street shops will see a decline in sales. The report predicted a decline of 10% in store numbers between now and 2020, and added that in town locations may even see a decrease of 31%.
“Retailers need to ensure that all stores are trading well,” the report stated.
“This means moving away from a ‘one size fits all’ store portfolio to ensure local and tailored demographic demand is met. Tailoring propositions in line with the rise of mobile is as important now as it was for online investment a decade ago.’’
Atkins concluded: “As ever, in the cut-throat UK retail market, there will be winners and losers.
“But for those in the retail market who continue to meet and anticipate customer needs, there will be exciting opportunities ahead.”
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