Retail 2019: Our Top Ten Predictions

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There were plenty of insightful moments in 2018, those little and sometimes not-so-little indicators that give us a glimpse of what’s to come.

 

Consider the demise of Toys ‘R’ Us followed by the resurrection of FAO Schwarz. Or the weird missteps like Sephora’s Halloween “Witch Kits” or Asos’s tiny crop tops for men. But those are just blips on the cultural radar compared with Amazon’s bold moves into brick-and-mortar — even if their Amazon 4-Star stores look like a cross between a warehouse and a dollar store.

 

Which is why Amazon tops our list of predictions because like it or not, they have the muscle and money to make a dramatic impact on the retail landscape in 2019.

 

 

At top, Amazon Go has been launched in dozens of cities and more will follow in 2019. Below, the Amazon 4-Star store in Emeryville California.

1. Amazon Continues its Push into Retail.

Fall ’18 was all about Amazon Go and Amazon 4 Star. While neither was groundbreaking in design, the concepts continued Amazon’s relentless marketing message: we will dominate. 2019 will see even more Amazon Go stores with a projected 3,000 locations by 2021. The goal for Amazon is to be able to meet their customer anywhere, anytime, whether online or at the corner. My only plea: hire someone to design stores that don’t look like a warehouse.

 

2. Social Media Platforms Become E-Commerce Platforms.

The time is ripe for social media platforms to begin offering native payment integration for e-commerce. Think of it: Instagram’s 1 billion active monthly users and WhatsApp’s 1.5 billion already gives them unparalled access to shoppers. Imagine how native payment capabilities on these platforms could transform traditional e-commerce platforms.

 

3. AI Technology Revolutionizes How Companies Will Use Customer Data.

Forget ordinary market data. The growth of Artificial Intelligence means marketing as we know it will become even more data-driven. Ad campaigns enriched with AI will be smarter and more relevant to a target audience. AI will also be better able to track what type of content registers with consumers, which means a website will feel highly curated for each and every visitor, resulting in increased conversion rates.

 

4. In-Store Product Aisles Go Interactive.

Grocery stores have never had space for dynamic content, but now all that will change. video, virtual reality, and augmented reality will make product aisles interactive, with targeted information about products available throughout the store. This also means that stores will no longer be so wholly dependent on misinformed or poorly informed sales associates. Interactive content will fill in the blanks for consumers who just don’t have the time to find a knowledgeable store staffer.

 

Target Inc. saw huge success over the holidays with its click-and-collect concept. Others will take a page from them and do the same in 2019. Courtesy Target Inc.

5. Click-and-Collect Becomes the New Normal.

With looming trade wars raising the prices of ordinary goods, more and more stores will invest in programs that allow customers to buy online and pickup in-store. Click-and-Collect will give retailers the ability to price compete by shaving off last-mile shipping. Target has already ramped its Click-and-Collect programs to virtually every store, and Walmart has curbside pickup at over 1,800 stores.

 

6. Cannabis Continues Upward Trajectory.

2018 was the year of category expansion, as legal marijuana and cannabis related products soared into the food and wellness sector. 2019 will see a surge in subscription clubs, specialty drinks featuring cannabis, and boutique hotels built around cannabis culture. With the increasing number of states legalizing marijuana means even major brands will be looking to cash in – even big tobacco, which worries that weed will replace cigarettes and beer.

 

One of the first Cannabis energy drinks was launched in 2013. More will hit store shelves in 2019.

7. Food Delivery Apps Innovate – or Die.

Let’s face it, food delivery apps like DoorDash or UberEats are strictly linear experiences that are only about convenience – and nothing else. The playing field is too crowded and no one stands out for quality or service. We predict that 2019 will force some players off the field and that the winner will be an app that offers elevated content and contributes to the growing “foodie” culture.

 

 

Glossier’s New York City flagship. Courtesy Glossier

8. Glossier Continues its Disruption of the Beauty Industry.

Glossier, plain and simple, is emotional commerce, and in a relatively short time, has managed to write the playbook for digitally native content that resonates with women. How? It’s a connected end-to-end approach to commerce by making the customers the brand. The customer essentially builds the brand and determine which products and services deserve to be part of Glossier. 2019 is when Glossier will explode the retail category with more SKUs and more physical store rollouts modeled off their New York flagship.

 

9. High End Convenience Stores Ramp Up.

What started as a novelty concept earlier this year is now a bona fide retail model: tiny but upscale convenience stores delivering those last-minute essentials as well as luxury impulse items. According to a 2017 study by market researcher Maru/Matchbox, 68% of US millennials will pay more for organic food and 66% will pay extra for sustainable food. Startup store models in In New York, Los Angeles, and Denver have proven that elevated convenience is a sustainable model that can easily be rolled out like 7-11 stores, and deliver a better experience.

 

 

  The Goods Mart in Los Angeles. Courtesy The Goods Mart

10. Compelling Content No Longer Optional.

There is a flurry of job postings for copywriters, and for good reason. Startup companies of all stripes are realizing what abysmal content they have on their websites and that great copy keeps consumers online and drinking your brand’s Kool-Aid. Emails, ad campaigns, and product pages will begin to change thanks to a greater emphasis on meaningful content that drives conversion rates and brand loyalty.

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