Not surprisingly, given the current [image-nocss] recession, economic trends will be a big influence on which retail store formats will prosper and which will fade over the next few years, according to retail professionals responding to a late 2008 RetailWire.com/Dechert-Hampe survey; however, tight budgets will not be the only factor, and perhaps not even the most important influence on the types of stores retailers build. In fact, according to the study findings, consumer hankerings for convenience, attentive customer service and pleasant shopping environments may trump economic imperatives in driving where consumers choose to shop and, thereby, the design of retail spaces to come.
Highlights from the survey include: Hope for overall growth: Despite the current gloom, just over half (54%) of all respondents think the industry will experience modest or better growth over the next three years. And, interestingly, retailers were the most optimistic group, with 65% saying they expect "moderate growth" as compared to only 45% of manufacturers who felt that way. Small, nearby and easy on the pocketbook: Respondents forecast that the number of "small format grocery" and "neighborhood markets" along with "extreme discount/dollar stores" will increase sharply over the next three years, driven by such key factors as "value for money," "convenient locations" and a "pleasant shopping experience." Retailers will not skimp on innovation: Success will come to those retailers who create new and different formats. The selection of different retail formats available to consumers will expand, according to 46% of survey respondents. Only 25% see the numbers contracting. Consumer experience will be the watchword: In another indication that satisfying consumer wants and needs will be a big determinate in retail format design, the most successful retail concepts were predicted to be "quick/fresh small format grocery," followed by "experiential stores" (e.g., Apple Stores) and then "mission focused stores," which could be seen to be exemplified in OfficeMax's new mini mart concept. (Click here for CSP Daily News coverage.) For an executive summary of the "RETAIL:NEXT: Retail Formats in Transition" study, click here.
The "RETAIL:NEXT: Retail Formats in Transition" survey was fielded in November/December, 2008 by Dechert-Hampe Consulting. It was conducted as an internet survey covering the RetailWire community and other industry participants. The survey results are a composite of 228 total responses. The respondent population breaks down as 32% manufacturer/vendor; 24% retailer/wholesaler; 31% services/research/consultant; 13% agency/other.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.