big box retailers, brick-and-mortar retail, Consumers, Designer fashion, Digital retail, environmentally conscious consumers, Fashion, fashion brands, Fashion industry, futureofbrands, Innovation, Innovation in fashion, online shopping, Physical stores, retail, Shopping in 2020, Technology in fashion, Technology in Shopping
The decade kicked off with over 1,200 store closures being announced by the likes of Macy’s, J.C. Penney, Papyrus, Express and Pier 1 Imports. Following 2019, which saw over 9,000 store closures from the likes of Payless ShoeSource, Charlotte Russe, Forever 21, and Charming Charlie, should come as no surprise. It is common to see closures following a dismal holiday shopping season but analysts predict we’re in for more store closures in 2020.
Shoppers are increasingly turning to their computer or smartphone to shop instead. A larger selection at their fingertips along with the ability to quickly price-compare is further encouraging spending online. Even the biggest of department stores are finding it hard to stay afloat, though for the longest time, they touted their large offerings as their key differentiator. Even when drawing shoppers into their stores, department stores had to put 74% of their merchandise on sale in 2019, on average!
Still, it’s not all doom and gloom for brick-and-mortar retail. Physical stores who are able to succeed will do so by further gearing the shopping experience to each customer and offering innovative products. Many stores who offer online & physical stores tend to do better than physical stores alone.
Digital retail will continue to grow as part of total consumer spending in 2020. The increasing variety of brands, products and innovations allows shoppers to have the world literally at their fingertips.
- Online spending will continue to increase as proportion of total spending by consumers
- Shoppers will turn to both large and small retailers online to find unique products
- Stores with both physical and brick-and-mortar will have a better shot to a successful year versus those with physical stores only.