Retailing will become more personalised, collaborative and socially influenced in the future, according to new research from market research specialist Planet Retail.
The report, called The Future of Retail: 10 Trends of Tomorrow, warns that retailers should begin preparing themselves for another few years of significant structural change.
Natalie Berg, retail insights director and author of the report, says: “Retailing has undergone seismic shifts over the past five years and we believe that further fundamental changes are just around the corner.
“By 2020, we predict shoppers will have to pay for home delivery, traditional points-based loyalty cards will become a thing of the past, pure-play retail will largely cease to exist and checkout-less stores will become a reality.
“A key theme across the 10 future trends is the need for collaboration.
“Retailers are finally beginning to recognise the benefits of working together, both in a bid for differentiation and providing a better service for the customer.
“We expect more retailers will join forces by 2020, primarily through in-store concessions or collection points for online orders.”
Berg believes the store of the future will be heavily influenced by technology.
“We expect more retailers – particularly the spacious, SKU heavy hypermarkets – to invest in in-store navigation capabilities.
“In addition to the opportunity to better understand shopping habits, this technology is incredibly powerful, as it enables the retailer to engage with shoppers moments before potentially making a purchase.
“In the not too distant future, we also expect more shoppers to pay for items via their smartphones.
“The highly publicised launch of Apple Pay has certainly created a buzz around mobile payments, but we believe it will be some time before shopper usage catches up with awareness.
“In fact, our research shows only 20 per cent of shoppers globally have used their mobile phones as a method of payment.
“Concerns over privacy and security must be addressed in order for mobile payments to be accepted beyond those early adaptors.
“Convenience, ease of use and providing tangible benefits for the shopper are essential.
“For example, some retailers have been testing checkout-less stores, allowing shoppers to use their smartphones to scan and pay for items as they add them to their basket.
Planet Retail’s 10 future trends:
• Fewer, but more impactful, stores.
• Working together to stand apart .
• Race for the most convenient store experience .
• Personalisation to reach new heights.
• The end of points-based loyalty cards.
• Power of the peer .
• Cracking the final mile .
• Death of pure-play.
• Click and collect .
• From one-click to no-click.