Key trends for retail in 2019
The Institute of Grocery Distribution has identified the top five trends that retailers can expect to see over the following 12 months
Innovative advances in technology, coupled with seamless in-store shopping experiences, are among the IGD’s top predictions for 2019’s global retail trends. Head of Insight, Innovation and Futures Toby Pickhard said: “The biggest trend of all in the New Year is likely to be the continuation of rapid and radical change in the food and grocery industry. We have already seen a significant pivot towards innovative new technology, and there is no sign of this letting up next year. Shoppers’ expectations have changed, and the retail and grocery sectors are working to meet those expectations in every area of business.”
Customer data offering more personalised shopping
2018 has seen data become more valuable to the retail sector than ever, with 46 percent of supply chain experts now actively prioritising data-driven business. As well as helping to boost sales, accurate data will be vital for tools that allow retailers to understand customer behaviour – and reward their loyalty.
Through customer datasets, artificial intelligence (AI) and machine learning in-store, retailers can target products and offers more effectively whilst maintaining appropriate stock levels and improving customer service. Insights gained through closer customer engagement will provide invaluable guidance to retailers looking to grow their businesses.
Sustaining the environment
Issues such as food waste and plastic pollution are headline news, and this has translated to changing attitudes across the generations. Nearly three quarters (74 percent) of UK shoppers say that they have become more aware of the environmental impact of plastic packaging over the past year, and this has led to innovations such as biodegradable wrapping and plastic-free supermarket aisles. Retailers are no longer thinking about just reducing waste, but want to make a positive, tangible contribution.
Physical stores becoming more digital
Physical stores will offer a much more digital experience in 2019, by using technology to make it easier for customers to find items and gain more product information. 85 percent of UK shoppers would like to see the roll out of more in-store technologies. This should lead to a faster shop for many, where searching aisles and shelves for the right item is replaced by an app that guides shoppers to where they want to be.
Supporting the health and wellness of consumers
Most shoppers aspire to eat and live well, with 85 percent saying they are actively trying to improve their diet, but aspirations don’t always translate into action. We believe shoppers will be more health conscious going forward, so supporting them to both look and feel good will be a major priority for retailers and their suppliers. This means that both consumers and businesses will be thinking more about wellness and the role of retail in promoting cleaner living going forward.
More ‘on-the-go’ goods
We expect new innovative social commerce solutions to emerge throughout 2019. Retailers and suppliers will deliver targeted marketing, and new ways to make online shopping more social, instantaneous, and convenient. Whether through targeted marketing or simple ways to make purchasing more seamless, shopping is becoming not just more convenient but more instant as well.
Shopping will become seamless and omnipresent. People will no longer need to visit a retailer’s online store. As they look at pictures, watch videos or TV they’ll be able to just add products to a shopping cart. This has the potential to change the way that retailers think about selling in the future.
