Tony D'Onofrio
Retail
Welcome to Dubai or as CBRE calls it, the key stepping stone for international brands entering the Middle East. Over the next three years, more than 1.5 million square meters of new retail space could be delivered to the Dubai market, adding roughly 50% to existing inventory.
Being on the Board of Advisors for the upcoming Dubai Smart Stores Expo and having personally experienced the vibrancy of Middle East on multiple occasions, it is time to revisit this region and explore its global retail possibilities.
The Digital Transformation of the Middle East
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The State of Retail RFID
Retail is not dying. Today's consumers are being presented by an increasing number of shopping options. Online versus in-store engagement trends are converging and technology is increasingly the differentiating element.
A recent IHL research study titled "Out-of-Stock, Out of Luck - How Retailers Alienate Customers and Lose Billions Due to Poor Inventory Practices" prompted this relook at retail RFID. The top answers as to why consumers still prefer to shop in-stores include: want / need the product immediately, desire to touch and feel the item (try it on), don't want to pay expedited delivery charges, support local retailers, and convenience / easier than online.
Fast checkouts and products being in-stock are the two most relevant components of positive instore experiences.
A Different Kind of Amazon Effect
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Future of Retail with the Top 5 Apparel, Luxury, and Technology Brands
Being a firm believer that branding is a critical component to the future success of all companies, every year I look forward to the latest edition of the BrandZ Top 100 global brands report. Disruption, disintermediation, and differentiation are the three words that stood out in the nearly 300-page 2018 edition.
2018 Global Top 100 Brands Highlights
With an increase of 21% in 2018, the BrandZ global top 100 brands added a record $748 billion, to reach $4.4 trillion in total value, an increase of $2.9 trillion since 2006. 2018 set a record as the largest one-year value increase in the 12 years publishing the global report.
Every industry category had an increase with retail rising the most and for the second consecutive year in a row. The brand value of the retail sector rose 34% as e-commerce brands spiked in value and the category adjusted to disruption.
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Welcome to Retail Shrink Reporting Week
With the USA NRF Loss Prevention Trade Event taking place this week, it is time to revisit the new Sensormatic Global Retail Shrink Index published earlier this year. Covering 14 countries representing 73% of global GDP and 80% of global retail sales, it is the authoritative document on worldwide loss prevention trends.
In 2017-2018, the cost of retail shrinkage was $99.56 billion for the countries surveyed. This post focuses on my two favorite charts from the entire study.
Highest Shrink Rates Across Verticals and Countries 2017-2018
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This past week had the pleasure of visiting the new Zara Concept Store in Milan, Italy. Located near to the Galleria Vittorio Emanuele II, one of the oldest retail malls in the world, this Inditex owned location is the perfect bridge to the future of retail.
What do you do when you decide that a major flagship location in the fashion capital of the world needs a physical upgrade? If you are Zara, you close the majority of the store and leverage the elegant entrance to test a new retail concept.
Walking through the entryway you can very quickly visualize the intersection of online and the physical retail store. Uncluttered physical clothing racks are overshadowed by a large digital screen displaying the latest fashions. Simplicity meets digital innovation.
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Customer First Cashierless Shopping and Self-Checkout Theft
The announcement of Amazon Go in December 2016 sparked the Western imagination on the potential of frictionless cashierless shopping. Roughly 18 months later, we are still on the road to the fully autonomous retail store.
This post summarizes the opportunities and challenges of this global innovation journey. Primary focus is on the state of self-checkout, mobile scan-and-go adoption, and an update on global autonomous store deployments.
Back to the Future of Automated Stores
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Coming soon, the new Sensormatic Global Shrink Index. The most comprehensive shrink survey to date from countries representing 73% of global GDP and 80% of global retail sales.
First is the sample infographic shared last week focusing on Europe. Second, for the global audience, below is an additional peek at the data. More in April.
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Not too long ago, many including myself were forecasting major consumer changes for the year 2020. That magical year is just around the corner and it is now time to simplify the digital future of retail.
Big Data is Bot Food for AI
Information or more specifically data has been the power engine evolving the retail industry. For much of its history, the store, the forefront of the consumer moment of truth, was under-sensored.
With the connected consumer able to instantly choose alternative products or brands, retailers need to integrate a greater number of data sets inside their stores. Welcome to the Internet-of-Things for Retail (IoT):
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Every National Retail Federation (NRF) Big Show, Deloitte publishes updated research on the top 250 global retailers. This favorite annual retail report summarizes industry / economic global trends and dissects the shifting sands of the world's largest retailers. This post summarizes my favorite insights from the 2018 edition.
Transformative Change, Reinvigorated Commerce
The rules of retailing "are being rewritten in this time of transformative change. Innovation, collaboration, consolidation, integration, and automation will be required to reinvigorate commerce, profoundly impacting the way retailers do business now, and in the future."
The 2018 retail industry trends identified by Deloitte include:
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This week finds me in Asia with stops in Shanghai, Bangkok, Hong Kong, and Tokyo. On many levels, Asia is the "below the surface" retail innovation laboratory.
In the "Retailing 2020" post I proposed that you "Look to China where 500 million people are already shopping on mobile phones to understand the future of retail. Digitally driven ultra-convenience, spontaneity, and social shopping trends are transforming all Chinese retail sectors including grocery." During this trip I had the opportunity to visit the Alibaba digital / physical hybrid Hema Supermarket in Shanghai.
Building on the "NRF 2018: The Ten Quick Transformational Retail Trends", as promised here are my three below the surface trends of the New York Big Show that define the future of retail.
What a Visually Amazing Story You are Spinning
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Harvard Business Review
It is a Small World
“Even monkeys can fall from their trees.” – Japanese Proverb
Continuing our global learning journey, our next stop is Tokyo Japan. Founded, in 1603, this city was once a small fishing village called Edo. In 1890, it became Tokyo which means Eastern Capital in English.
In Tokyo, you will find the world’s busiest intersection, the Shibuya crossing where 2,500 people cross the intersection, every time the lights turn green. This city also holds the record for the most Michelin starred restaurants at 212 places to enjoy amazing food.
Tokyo is the most populous city in the world with 37 million people. Uniqueness is everywhere, even in vending machines, where you can buy hot meals, fresh produce, and even umbrellas. There is one vending machine in the city for every two people.
Have lost count on the many times I visited Tokyo to experience their modern retail industry. This picture is from the New Otani Hotel gardens, a favorite during multiple visits.
As the Japanese proverb that opened this summary reminds us, no matter how accomplished we become, you can always make a mistake. Overconfidence can lead to missteps. Life is one sweet ride and Japan provides many reminders on how to enjoy it.
Categories
Brilliant Research
Deloitte Global Retail Outlook 2024
After a prolonged period of suppressed consumer spending, macroeconomic and geopolitical uncertainty, and rapid changes in consumer behavior (among other things), the global retail industry stands at a crossroads; forced to make decisions about long term investments in new technology and business models while at the same time managing the rising cost of doing business and a decline in the spending power of consumers. - From Deloitte Insights Read more
Smart Infographic
The World's Top Flight Routes by Revenue
In 2024, a record 4.7 billion people are projected to travel by air—200 million more than in 2019. While revenues surged to an estimated $896 billion globally last year, airlines face extremely slim margins. On average, they made just $5.44 in net profit per passenger in 2023. Today, the industry faces pressures from high interest rates, supply chain woes, and steep infrastructure costs. - From Visual Capitalist
Insightful Videos
The World Ahead 2024: five stories to watch out for
From the biggest election year in history, to how to control AI and even taxis that fly, The Economist offers its annual look at the world ahead. Read more
