“Complete surprise”: sales of electronics collapsed in Russia. The decline in retail trade in Russia continues Decline in trade in a year

The decrease in retail turnover for the period of 2015 and 2016 amounted to almost 20% - the Russian market has never known such a fall. Against the background of the collapsed effective demand and the intensification of the struggle for the consumer in retail, trends have emerged that will certainly have an impact on the development of the market in the very near future.

"onmouseover="metricaGoal("view_term_popup")">

What should retail do?

The article used the speeches of the speakers of the XII All-Russian Food Forum (as part of the Prodexpo-2017 exhibition).

More government checks

Changes in the law "On Trade" and in regulations have left their mark on the relationship of players with each other and with the state. structures. In 2017, the process of adaptation to work in the new legal environment will continue, which affects both suppliers and sellers.

On behalf of the government, from January 1, 2017, the territorial bodies of the Federal Antimonopoly Service conducted large-scale inspections of the readiness of companies to work under the new norms of the Law “On Trade” and requested tens of thousands of pages of contracts and reports from companies relating to 2015, 2016 and early 2017. The emphasis was placed on large federal networks. “Companies are quite ready to work in the new conditions, although not all contracts with suppliers have been renegotiated for a variety of reasons, from a review of the network strategy to the inability to find the right interaction formula that satisfies both parties in a short time,” said Sergey Kuznetsov, director of the Union of Independent Networks of Russia.

Feds vs. Regionals: Fight Intensifies

The territorial expansion of chains, aimed at capturing market share, has led to the fact that in large cities, stores of federal and regional chains closely coexist and compete for consumers. Local trading companies believe that in their region they manage the network more effectively and know the consumer better.

However, due to their volumes, federal chains are able to sell certain categories of goods at 30-40% cheaper. Local companies have to make a difficult choice - to sell certain products at a loss, not to sell them at all, or to look for replacements for them. And it is far from always possible to find an adequate replacement for large federal manufacturers.

“The thesis that competition is getting tougher has been heard all the time, but this year it is worth changing the term, as competition has become tougher than ever, and this will have to be reckoned with,” notes Ivan Fedyakov, General Director of INFOLine.

Industry leaders are trying to capture the market

The market leaders have become even bigger. According to the preliminary data of the INFOLine annual rating of retail chains, in 2016 the top 100 Russian retail accounts for a third of the total retail turnover. At the same time, 10 players consolidated more than half of the revenue attributable to the top 100, which is 4 trillion rubles.

In the Fast Moving Consumer Goods segment - consumer goods. This is a generic name for consumer goods (especially light and food products) by a wide range of buyers that are relatively cheap and sell quickly. The concept includes personal hygiene items, household chemicals, packaged food, consumer electronics and other categories.

" onmouseover="metrikaGoal("view_term_popup")"> FMCG retail leaders in terms of turnover were X5 Retail Group and Magnit, their turnover in 2016 exceeded 1 trillion rubles, while X5 Retail Group grew during this crisis year by 27%.Growth in revenue in the industry was mainly due to extensive development, the opening of new stores.Two leaders "X5" and "Magnit" accounted for 2/3 of new stores."X5" set an outstanding result - more were opened across the country 2000 stores, which was the highest indicator for the chain itself and for the industry as a whole.

Sales volumes continue to decline

The revenue of many companies in rubles remained at the same level and even grew up, because the growth of inflation hid the fall in turnover.

“Supply is growing thanks to sanctions and an active investment policy, while demand continues to stagnate, and maybe even decline. And this means that the problem of selling goods both this year and next will be aggravated. Regardless of the will of certain participants in the consumer market and regulation,” Ilya Lomakin-Rumyantsev, Chairman of the Presidium of the Association of Retail Companies.

The fact that people began to buy less is also confirmed by analysts' data. According to INFOLine, the fall in the food market was 12-13% in 2015 and 5% in 2016, while inflation for the same periods was about 15% and 5.4%. “Despite the fact that the fall of the last two years was very painful, the most difficult is ahead of us. Measures of state regulation reduce inflation, and whether the purchasing power of the population will increase is a big question. In the next 2 years, only the most efficient companies will be able to continue their growth by increasing the physical volume of sales, when inflation will no longer support the performance of the company,” predicts Ivan Fedyakov.

Like-for-Like indicators last year for most companies are around zero, but the indicator takes into account inflation, which suggests that the stores of these chains are actually reducing real sales, Ivan Fedyakov analyzes.

The buyer saves money and repays loans

Since 2015, the behavior of Russians in the field of savings and lending has changed dramatically. On the one hand, Russians' deposits in Russian banks grew by 7 trillion rubles. This money remained in the bank and was not spent in stores. On the other hand, the volume of household debt to banks, which had been doubling every year until the end of 2014, has been steadily declining since the beginning of 2015. Banks stopped issuing new loans, and the population stopped actively taking them and spent their money on repaying previously received loans.

“At the end of 2016, there was a weak and insignificant turning point in the lending picture in the country as a whole. In some regions, for example in Moscow, the average application for a consumer loan has almost returned to the pre-crisis level. We can say that the crisis is over in Moscow. But each region is coming out of the crisis differently, in St. Petersburg the same figure continues to fall,” Ivan Fedyakov assesses the situation.

What should retail do?

Retail chains will have to differentiate more carefully so that there are as many differences between them as possible:

• Collaborate with local manufacturers and develop private labels.
• Get away from direct comparison in the eyes of the buyer and find your own specific niche.
• Implement omnichannel - people are gradually getting used to buying food via the Internet.
• Update stores that are outdated physically and morally. “A wave of store renewal is expected in retail. First, large players, then medium-sized, then small chains will reconstruct their retail space. The improvement in the financial performance of the Pyaterochka retail chain speaks of the success of such a rebranding,” Ivan Fedyakov assessed.

There is a revival in wide retail. The consumer is stocking up on New Year's assortment on the eve of the holidays. However, this picture is not as rosy as it might seem at first glance. Prices are rising, purchasing power is falling, and it will not get better - these are the forecasts of the participants in the key link in the trade chain - distributors.

Karolina Kuznetsova, regional manager of the trading company "Global Trading": “Even compared to 2016, sales have declined. Of course, before the New Year, our customers try to buy goods, but they do not make such large stocks as before the crisis. Moreover, many of those who used to buy 20 tons each, today take 2-3 tons of goods, respectively, we had to stop cooperation with such customers, which became unprofitable for us. We work at very low prices and at the same time give a large volume, which means that the priority is the customer who is able to pay for the whole container.

Before the New Year, there is traditionally a growing demand for canned fruits and vegetables, fish, cereals, primarily rice. But, again, customers buy a little more product than during the year - maybe one percent.

Evgenia Dodulina, commercial director of the trading company "Prodservis": “We specialize in the meat trade - this is a product that, in principle, is always present on the consumer’s table, no matter what year it is, and for the vast majority, holidays are unthinkable without it. But I can’t talk about the New Year’s surge, which we expected and which was always present in sales during this period.”

Natalya Merzlyakova, head of the Eleon trading company: “This has never happened to us - even in the last crisis of 2008-2009. Compared to 2012-2014. Demand has doubled. If in 2012 before the holidays I could not leave work for a minute, today I have a lot of free time. And every year sales are getting weaker.”

The economy must be economical

The decline in sales is observed along the entire length of the distribution chain - from manufacturers to retail shelves, and this trend has been going on for almost four years. Experts say: the consumer continues to become poor, sales continue to fall, and accordingly, the market is being rebuilt towards the economy segment.

Karolina Kuznetsova: “The product range has changed quite a lot. The demand for the economy segment is growing; during the year, retail chains for the most part requested it. So, for example, one of our customers left canned saury of the middle price segment for economy. Therefore, the manufacturer also adapts to the market. Of course, Dobroflot will not produce very low-cost products under its own brand, but today some new, cheap brands are being created - for example, Neptune, that is, manufacturers bring such goods into a separate segment and every year they try to expand the line.

As the economy continues to slow down, the assortment of general retailers would become more democratic if the delivery of products was not marked by an increase in Russian Railways tariffs.

“Our products have risen in price due to the increase in Russian Railways tariffs - by about 3 rubles per kg,” notes Evgenia Dodulina.

At the same time, according to experts, the meat industry was affected by the rejection of Brazilian imports. From December 1, Rosselkhoznadzor temporarily restricted the import of pork and beef products from Brazil - the department found a prohibited growth stimulant - ractopamine in the goods. But distributors and retailers believe that this ban rests on big politics. And, as was already the case with the closure of Turkish, American import routes, someone's business tied to Brazilian products suffered. But a number of Russian manufacturers received winning positions.

2018 will be marked by austerity, experts say — even more stringent, given that the costs of logistics, utilities, etc. are growing, while the real incomes of the population are falling.

Evgenia Dodulina: “Look around and you will see that the market has already changed. Companies began to save, and to a large extent this affects the personnel policy. Orientation - to more qualified personnel, and it is important that these personnel are engaged in work for 8 hours of working time. Weak companies closed down, strong ones, on the contrary, began to think about how to develop further. In the Far East, such budget chains with reduced prices as "Radius" and the Novosibirsk chain "Svetofor" appeared. Remember, before the crisis there were none.”

The market will no longer be the same, at least in 2018-2019. - exactly, experts warn, despite the promising news that "the Central Bank believed in the future of the Russian economy." And while Elvira Nibiullina says that "the economy is stable, it can and should grow faster," the consumer buys the cheapest champagne for the New Year's table, since today he has a variety of choices.

“The most budgetary champagne today can be purchased in the region of 150 rubles. These are mainly sparkling wines of Russian production,” says Olga Shilova, Deputy General Director of ZAO Pacific Food Company.

In obese years 2012-2014. there was no such range. Today he appeared, in accordance with the Italian proverb, which in the Russian version sounds like "Roberto loved olives, and now he loves potatoes on onion gravy."

Marina Ostanina, General Director of the trading company "Rusimport - Primorye": “We note with regret that New Year's budgets are being cut. Corporate events are becoming more budgetary, and in many companies they are simply cancelled. In addition, it cannot be discounted that if earlier it was a widespread tradition to celebrate the holiday at home, with the family, today many of our citizens have changed priorities and fly to warm countries, which means they are taking with them money that they could spend here. In comparison even with last year, the demand for New Year's gifts and toys has decreased in stores. The same applies to alcohol. Of course, some of the stable consumers remain, but as there was a 20% drop in sales 2 years ago, these figures remain approximately at the same level. People have reduced the cost of consuming alcohol.”

Julia PIVNENKO

The year is ending. Time to take stock. How will we remember 2017?

Year of paradoxes . The eCommerce market is growing against the backdrop of a drop in retail in general, a plateau in the number of Internet users and a decrease in real incomes of the population.

Year of unexpected news . Came to Russia Tmall, Dmitry Kostygin arrested, fell apart Exist, "Yandex Market" launched fulfillment, eSky sold...

Year of restrictions. The state saw eCommerce and began to seriously regulate it, while investors, on the contrary, do not expect anything good from the industry.

Client year. website editor-in-chief Igor Bakharev and commercial director of EWDN Vladislav Shirobokov summed up this year in a series of review articles. In the first of them we will talk about how consumer preferences change the market.

Russian eCommerce continues to grow

Research agency data data insight show that Russian eCommerce is constantly growing. As one of the founders of the agency said Fedor Virin at the final breakfast Upgrade, in 2017, sales in the industry will amount to 960 billion rubles, excluding the delivery of ready-made food, crossborder and digital content.

The overall growth in online sales was 21%, so the market doubled in 3 years. It can be seen that in the last two years, prices have gradually stabilized.

The growth of the average check compared to the previous year amounted to 2%. Against the backdrop of a general doubling of the market from 2014 to 2017, a slowdown in the growth rate of both the average ticket and the number of orders is visible. With the current penetration of eCom, growth rates should be 5-10% higher, such a slowdown is certainly due to the general stagnation of the retail and economy, and not to the fact that the online market has reached maturity.

Association of Internet Trade Companies (AKIT) even more positive. According to her forecasts, by the end of the year, the market will finally “break through” the ceiling of 1 trillion and will amount to 1,150 billion rubles. However, her figures take into account the crossborder.

Recall that last year the volume of the Russian online trading market grew by 21% and reached 920 billion rubles. E-commerce for goods and services already accounts for 36% of the country's digital economy.

Over the past year, the number of online shoppers in Russia has grown significantly. As analysts say GfK and Yandex.Market, nine out of ten users from September 2016 to September 2017 made purchases in Russian online stores.

Macroeconomics Favors the Market

GfK Rus Business Development Director Ekaterina Stepanyuk notes that people are waiting for positive changes. "Now everything is so-so, but there is hope that tomorrow will be better," they believe.

Against this background, the index of consumer sentiment by the beginning of autumn amounted to 107 points. For comparison, last year it fell to 80 points, but since the end of 2016 it has been slowly but growing.

IN Ministry of Economic Development, at the same time, the gradual increase in people's income. Experts say that this, however, is not due to an increase in wages, but to the strengthening of the ruble and the fact that the Russians are getting into loans. As noted in "Monitoring of the economic situation in Russia" RANEPA, consumer lending grew by 23%. According to the National Bureau of Credit History, the issuance of such loans increased by 27% in eight months.

The index of entrepreneurial confidence in retail trade in the third quarter of 2017 remained unchanged from the previous period. According to the HSE, this indicates "the achievement of a certain stabilization in the segment, which should be regarded as an unambiguously positive trend."

The market should seize the moment, Stepanyuk believes. Now is the time for retail to skim the cream off improving consumer sentiment.

"Voice of the customer" becomes the basis of marketing

In 2010-2012, huge money came to Russian eCommerce. According to research EWDN, funds went almost as much as to the American one: $400 million a year we have against $500 million in America. However, this money was dissolved, was distributed among marketing tools, they were consumed at best "Yandex", Google and service providers. Internet projects, on the other hand, realized that for a long, long time they were making a product that only they needed, and not buyers and the entire ecosystem.

Against the backdrop of fierce competition with China and the washing out of real money from the market, communication with the client, increasing his loyalty, it is more and more important to hear "Voice of the customer" know what the buyer wants. According to Stepaniuk, an interesting effect is now observed: people are looking for buying experiences. It is important not only to sell and deliver the goods, but also to make the purchase interesting.

This trend is especially relevant in the regions, Alexey Fedorov ("220 volts"). In small settlements, it is very important for a client to get not only goods for his money, but also "social activity". He needs to talk to the seller, see the products, choose the best, have a good time.

"In small towns, every expenditure of 2,000 rubles is not only an opportunity to purchase goods, but also entertainment," the expert adds.

Experience shopping is now a mainstay in brick-and-mortar retail, but in the coming years it will come to eCommerce as well.

“The consumer no longer cares whether he receives a purchase online or offline. When he enters the site, he reacts very clearly to how comfortable he is at the moment, whether navigation is convenient, etc. It’s like in a regular store, but online the need for comfort increases, because there is no consultant who will tell you where everything is, you are one on one with the site," she says.

"Shopping impressions" now is not just a beautiful showcase of the site or a sale, it is a huge set of impressions that "catches" a person when he enters the site.

If the consumer does not like something, if the next action requires the visitor to take some extra actions, expectations, the need to understand something, this causes negative emotions and the visitor leaves.

GfK research shows that convenience and good mobile communications are the main factors that are important to the consumer from an online store.

"People, tired of the crisis, are returning to such values ​​as warmth, emotions, communication. This is a physiological human need. Those stores that appeal to the hearts of consumers will start gaining points from next year," adds Stepanyuk.

“We have been telling retailers for several years that their main task is not to launch an online store, but to provide customers with a useful and convenient service, satisfy their needs, and improve customer communication with the brand. And only this year, on most projects, we finally managed to highlight deep audience research into a separate large stage. Retailers are interested in the problems of the buyer and are ready to seriously analyze the shopping experience, "says Mikhail Antonenko, art director of the Aero eCommerce agency.

What will happen in 2018?

No one can say for sure, because the situation is like 5 years ago, when online stores went out and loudly announced their long-term plans until 2020 - this is no longer the case. Now they don't even talk about a semi-annual strategy, at best - about 3-4 months. This is even more true for small shops. The average lifespan of a small online store is less than one tax period, 5 to 6 months.

One of the unconditional "events of the year" is the lecture given by the co-founder and executive chairman of the board of directors of the company at the Faculty of Physics of Moscow State University Alibaba Group Jack Ma. , online trading in Russia is still tiny. "Russian eCommerce is a small and helpless baby and even smaller. All your e-commerce in Russia is less than 1% of all retail," he said. In China, according to Ma, this was the case 12 years ago.

And although the share of eCommerce is already 4% of retail, but basically Jack Ma is right: Russian businessmen have huge opportunities to develop the market. However, for this you need to work hard, you need to recruit a serious team and understand what you want to come to. And most importantly: listen to your customers! Without this, there will be no results, regardless of the funds that were invested in the project.

We will talk about the main trends of 2017-2018 tomorrow. Don't switch!

Because online today you can find any information, buyers no longer agree to be in the dark about the products they buy.

The rise of transparent, environmentally conscious companies such as Warby Parker and Everlane in recent years has initiated a radical change in the retail industry. We expect this trend to pick up pace.

Consumers are becoming more and more interested in where their money goes, rather than just the product they buy with that money. It is no longer enough to simply sell high-quality products without any information about their background.

On the contrary, buyers have reached out to retailers who show all the internal mechanisms of their work. Everlane, for example, discloses the cost of manufacturing its products: materials, labor, duties, and markup. They also include information about the factories where the goods are made, add photos and videos of workers and themselves. In this way, Everlane customers know exactly what was spent on the production of the product they are about to purchase and can feel the satisfaction of the preparation and morale involved in their purchase.

Several factors are at play in this trend: the global shift towards sustainability, the desire of consumers to be more ethically conscious in their purchasing decisions, and a greater interest in supporting brands with a "strong identity consciousness".

Example. Recently, a client of Vend, Bread and Butter Letter, a New Zealand vintage and home goods boutique that sells exclusively New Zealand-made goods, told us: “We have noticed that our customers are increasingly asking serious questions: where do the goods come from, what are they made. We also noticed that people are more likely to refuse our paper bags and bring their own!”

Until July 27, IKEA Centers Russia is looking for innovative retail solutions. If you have technology that will make shopping in the mall more comfortable, !

2. Stores that provide a unique in-store experience will thrive

In 2017, retailers will rule the roost by providing unique in-store experiences. After all, the only way to convince a customer to come to your store instead of shopping online is to give them an experience they can't get anywhere else.

When we hear "in-store experiences" in relation to retail, most of us think big: we think of the fact that Urban Outfitters buys Pizzeria Vetri to incorporate into their stores, or Rebecca Minkoff's smart fitting rooms.

But this is only one aspect of the two directions of the shopping experience trend. And what is the other? Finding ways to catch up and surpass the convenience of online shopping.

Most retailers are attempting to do this by creating an omnichannel shopping experience - in other words, bringing the benefits of the online world to brick-and-mortar physical stores.

Take, for example, Crate + Barrel. A home improvement store recently tested a program called Mobile Cart. Shoppers browsed the racks using store-provided tablets, could use them to scan barcodes and get more information about products, add items to their wishlist, and get help from sales assistants when choosing items.

The in-store experience is becoming increasingly important for customers and we expect more retailers to invest in such initiatives.

3. All retailers will implement mobile payments

Mobile payments are the way of the (coming) future. Until the end of 2017, retailers who have not yet implemented them will make every effort to do so.

According to forecasts by the end of 2016, the number of mobile payment users worldwide will reach 447.9 million. TechCrunch estimates that 70% of all US mobile users in 2017 will make at least one mobile payment. Mobile payments are expected to reach $60 billion overall in 2017, and Business Insider writes that mobile payments will reach $503 billion in sales by 2020.

It's clear where the retail industry is heading in terms of payments - at least for now.

Retailers that do not implement mobile payment solutions soon will be left behind. per.] and risk losing their sales volumes, and this can mean losing a lot of money.

You can bet that all retailers will jump on this train by implementing mobile payment systems that suit them best, such as mobile POS systems, customized mobile payment apps (like Kohl’s Pay) or third-party solutions (like Apple Pay).

In 2017, the development of contactless transactions - be it a contactless card or a mobile device with a digital wallet - will accelerate. We are seeing robust double-digit growth in contactless transactions in Canada. The US will also be stimulating this growth due to its transition to EMV. Businesses that conduct transactions should think ahead and find a solution that supports contactless capabilities to upgrade their EMV systems in the future.

Consumers like touch and a business must prepare to excel in this area. With the continued adoption of Apple Pay, Android Pay, and Samsung Pay in North America and around the world, the importance of contactless payments will grow. Consumers will expect opportunities in whatever way they want, and businesses will need to evolve with changing customer expectations.

4. Small shops are coming; big ones go

The evolution of consumer preferences will push even more chain retailers to focus on smaller stores.

When it comes to store size, in 2017 less means more. We're already seeing changes with retail giants like Target, Best Buy and IKEA investing in small-format stores to meet consumers' desire for more controlled merchandise.

To better understand why shoppers are leaving big-box stores, we need to look at another big retail trend: the importance of convenience and accessibility. When people can shop online and have their purchases delivered directly to their homes within hours, they need to be promised a quick and easy shopping experience to entice them to go to a physical store.

Shoppers no longer want to waste valuable time wandering through the endless aisles of hefty hypermarkets. On the contrary, they want simplicity and efficiency in the form of small shops with a specialty selection.

Small shops have other advantages as well. They cost less to open and maintain and take up less space in an urban environment, allowing retailers to capitalize on the potential of densely populated centers.

5. Personalization will become more important for consumers

Sure, Nike is big and financially successful, so they have the resources to push personalization to its limits, but smaller retailers can take advantage of this trend too.

Ideas? Targeting content (using means such as purchase histories) to users based on their preferences, using location technologies such as beacons to display personalized offers on customers' mobile devices. Small shops have other advantages as well. They require less cost to open and maintain, and they take up less space in an urban environment, allowing retailers to capitalize on the potential of densely populated centers.

Consumers are starting to expect more from retailer loyalty programs. They want more personalization and offers that money can't buy. According to a Virtual Incentives survey, 56% of consumers said that receiving personal bonuses would improve brand perception.

The means of gaining access to customer data that makes these personalized bonuses and offers possible are typically loyalty programs. Consumers are increasingly willing to give access to personal data for honest loyalty offers or personalized incentives. According to Accenture, 54% of consumers say they are willing to share personal information and shopping preferences with retailers in order to receive personalized offers (up from 33% in 2014).

In 2017, retailers will see the benefits of this exciting new technology that makes it easy to collect customer information and realize the need to use that data to create more personalized loyalty programs and offers instead of past generic and boring options.

6. Same day delivery will come to the fore

Free shipping in the modern world is no longer just an option, but a requirement. Name of the new game? Speed.

Consumers may no longer want to go to physical stores themselves, but still want the immediate enjoyment of being able to take their purchases home immediately. The best way to ensure this is same day delivery.

Take iPic Theaters for example. The company's website greets visitors with the headline "Your Best Night Out" - and they really mean it. iPic combines the classic movie experience with luxurious seating, cocktails, and award-winning gourmet restaurants. Customers can even order food and drinks from their seats while watching a movie.

These innovative concepts provide enough incentives for people to take a trip to a physical location, and so we'll see even more of this next year.

9. Information is still an essential component of retail success

More retailers will use every part of the process, from the supply chain to the post-purchase stage.

Retailers who make data-driven decisions will outperform those who don't. More and more merchants are recognizing this - which is why we think companies will double down on data collection and analysis.

JustFab is one example of a company that puts their customer data to good use. To learn more about their community, a fashion retailer conducts style surveys and then makes recommendations based on individual preferences. JustFab also carefully tracks the products that each member of their program reviews, rejects and buys, and uses this data to suggest choices.

Using information to personalize the interaction with each customer is just the beginning. Data analysis also plays an important role behind the scenes, especially when it comes to inventory management and distribution. Retailers rely on data to predict demand and make critical inventory control decisions.

1. Stores that prioritize product quality, openness and continuous development will prosper

Today, you can easily find any information on the Internet, so it will not be difficult for the buyer to find out absolutely everything about the product of interest. Buyers prefer those stores that show the kitchen of their business, for example, they talk in detail about what makes up the price of their product: raw materials, staff, taxes, markup. They give information about the plants and factories where these products are produced, accompanying all this with photographs and videos, showing their employees.

2. Stores that have unique product expertise will thrive.

The only thing that motivates a customer to make a purchase in a retail store and not on the Internet is knowledge about the product, which he will not get anywhere else. Most retail store owners are trying to build an omnichannel shopping experience - bringing all the convenience of online shopping to retail stores.

For example, Crate and Barrel, a US appliance retail chain, recently tested a program in which shoppers browse shelves using store-provided tablets. Customers can use the tablet to scan the barcode and get more information about the products, add them to their wish lists, and get help from the seller to complete the order.

3. All retailers will accept payments from mobile devices

This is the future. In 2017, those retail store owners who are not yet using this technology will certainly do so. Stores that are not going to follow this trend will fall behind and risk losing a lot of money.

Store owners will receive payments from mobile devices, choosing the technology that suits them best: mPOS systems, various mobile applications or Apple Pay.

4. The format of a small store will be popular, a large one will not.

Consumer preferences will push large retailers to focus on smaller stores.

In 2017, the area of ​​stores will decrease. In the US, this is already evident in such giants as Target, Best Buy and IKEA. They invested in small format stores to make it more comfortable and convenient for customers to choose goods.

To understand why shoppers don't go to big stores, you need to know another big trend in retail: the importance of convenience and accessibility. When people can shop online and receive home delivery within hours, only the convenience of shopping can lure them to an offline store.

The client no longer wants to spend precious time walking through the endless areas of huge stores. He needs to buy quickly, in small stores with a good and verified assortment.

There are other advantages of small stores: lower startup and management costs, as well as the ability to integrate into the urban infrastructure of large cities due to compactness.

5. Personalization is becoming more important for consumers

According to Accenture Interactive, 56% of consumers will choose a store that knows their name.

Personalization in retail has been going on for years. Unfortunately, such a tool as addressing the client by name (for example, in e-mail) is outdated and this will not surprise clients. At the moment, the owners are looking for new opportunities for personalization.

For example, targeting customers through the purchase history. Personalized offers are sent to their mobile phone when a special program determines by the geolocation of the smartphone that the client is near the store.

6. Same day delivery is getting more and more popular.

Free shipping is understandable. What else? Speed!

People may not want to go to the store, but they still need something urgently. Exit - delivery on the day of order.

A recent study by Temando found that 80% of surveyed shoppers want same-day delivery; 61% of respondents want their purchases to be delivered even faster - within 1-3 hours from the moment the order is created.

making such a delivery is not the cheapest option for retail, as there are a number of issues that will have to be resolved: ensuring the constant availability of goods, procurement and logistics.

But it is clear that there is a demand for fast delivery. And store owners will have to do something to meet expectations.

7. Store owners will continue to invest in omnichannel

Omnichannel is now the norm. Stores that choose an omnichannel strategy will be successful - it's something that won't let you down.

They sell through social networks, for example, through Instagram. Take advantage of apps such as Snapchat to give customers a behind-the-scenes look at the store's processes, thereby increasing loyalty. In the future, it is the presence of several sales channels that will distinguish a successful store from a ruined one.

8. Retailtainment - the combination of entertainment and sales - will spread in the industry

Retail, as the name suggests, is a combination of retail and entertainment - some store owners tend to sell in an original, fun, unconventional way, and this greatly increases sales.

For example, the American cinema iPic combines a classic cinema with luxurious seats, signature cocktail menus, and a gourmet gourmet restaurant. Visitors can order food and drinks directly from the cinema hall while watching a movie.

This approach encourages people to go somewhere, and not sit at home on the Internet. That is why in 2017 retail will be used more and more actively.

9. Statistics are still very important for successful trading.

More and more stores will use the accumulated data to analyze all the processes of trade: from the analysis of the supply chain of goods to the process of repeat sales.

Stores that make decisions based on data analysis will be more successful. More and more entrepreneurs are realizing that this is necessary.

Data analysis is also important for the back office of the store, especially in terms of inventory management and merchandising. Store owners rely on sales data to forecast demand and manage inventory.

10. Specialty stores will be more in demand than department stores.

Specialty stores focus on specific product categories, such as beauty products. In 2017, buyers are interested in the original assortment and local brands.

Specialized stores, as a rule, are very attentive to the assortment - they sell designer goods, handmade. They also look more modern than old-school department stores. The millennial generation, of course, chooses a trendy format.

Specialty stores also have good product expertise, better staff, better prices, and more personal service. This is their advantage over department stores.

By the way, department stores still do not die out. Well-known network giants have revised their approach to doing business quite a bit and are striving to look no worse than specialized retail outlets. However, the future still belongs to small shops.

11. Retail will increasingly use apps, services and third-party services

Retail apps will continue to grow and store owners will use them to stay competitive.

It's no secret that consumers today expect a lot from stores. In addition to the fact that sales must be conducted in several channels (retail, online, through social networks), people want to receive their purchases very quickly and in a way that is convenient - either self-collection or same-day delivery. This is quite difficult to organize, so the owners will use specialized solutions and applications, turn to courier services to quickly deliver orders.

12. Shops and technology will become one

In order to interest the client and be in demand, store owners will introduce even more technologies into their business.

In 2017, technology will become a way to attract customers to offline stores and create a successful multi-channel business: artificial intelligence, augmented and virtual reality, the Internet of things.

For example, with the help of augmented reality tools, buyers will be able to understand how to use a particular product. There are "smart" fitting rooms, touch screens in showcases.

Small and medium businesses will implement loyalty programs, use storefronts and other solutions that will bring sales to a new level.

2017 is the time for those who strive to improve every aspect of the customer experience and personalize sales.