By Christine Kern, contributing writer
Innovation, digital technology, and distribution will all be critical.
Deloitte recently released its 2016 Retail and Distribution Industry Outlook, in which Rod Sides, US Retail and Distribution leader at Deloitte, shares his thoughts on growth opportunities and industry trends for retail and distribution firms in 2016.
Among other things, the Outlook highlights improving existing distribution systems, appropriately incorporating digital technology into the physical store experience, and identifying innovative ways to leverage existing real estate as critical success factors for retailers in 2016.
According to Sides, retailers with optimized distribution systems and enhanced supply chains will have the advantage in 2016 as consumers increasingly demand faster delivery at the same price points. As the Deloitte holiday survey found, consumers do not want to pay for shipping, which means that the savvy retailers are investing in supply chains to enable faster and more efficient product fulfillment.
Sides provided three key takeaways for retailers for 2016.
- Making the most of physical space. By dedicating more of their supply chain network space to fulfillment and shipping processing and leveraging existing space to through partnerships, retailers can expand customer reach and monetize existing real estate. Sides explained, “Retailers should revisit the role their physical store plays in the consumer’s shopping journey and how existing physical store space is being utilized and leveraged.”
- Focus not just on the stories that you, as the retailer, want to tell, but also be cognizant of the stories that consumers want to hear. Many retailers are now realizing that crating a seamless omni-channel customer experience is unrealistic, leading them to examine each step of the customer journey, which requires more content and curation. Sides said, “While digital technology enables the creation of targeted messages, you still need to get the content and images correct for each media outlet, and synchronize this content with the consumer’s instore experience.”
- Agility and speed are crucial to market, and traditional retailers need to realize concepts more quickly. Retailers will continue to upgrade technology as they try to identify ways to dominate the intersection of digital and physical spaces. This also includes the accelerated adoption of mobile payment technologies. Sides explained, “With the market becoming more fragmented, speed and agility will become a clear differentiator for retail.”
