GMDC whitepaper explores future of North American retail landscape

COLORADO SPRINGS, Colo. — The Global Market Development Center on Wednesday released a new whitepaper based on a GMDC*Connect Videocast, “North America Retail 2020,” presented by Hannah Donoghue, senior analyst at RetailNet Group, that explores external drivers of change that will significantly impact the North American retail landscape over the next five years.

 

These external drivers of change are typically present in five distinct areas: macro-economic, societal, technology, industry and political. The “North America Retail 2020,” videocast and whitepaper examines these areas, bringing to light various industry competitive dynamics, as well as highlighting winning channels and store formats of the future. 

 

“The retail changes occurring in North America and even globally are very real and present. The facts and data presented in this whitepaper and videocast have reinforced the work we’ve begun doing to adapt our stores' experience, reach, location and digital use, among others,” reported Michael Petocchi, business group manager HBC/cosmetics, Wegmans Food Markets. “If you are not already aware of these industry disruptions and building a proactive plan, I suggest you use these resources as your starting point and build up from there.” 

 

In discussing macro-economic changes, Donoghue’s research found that as the U.S. population ages, the percentage of shoppers older than 65 years and reducing their consumption continues to grow. For every one shopper aging out of the population, only 0.8 ages back in, meaning the U.S. is not replacing shoppers on an age-weighted basis. 

 

“Aging consumers are affecting merchandising across categories. Retailers will need to cater to multiple generations within their stores, which changes shoppers’ overall store experience,” Donoghue said.

 

Additionally, U.S. income distribution shows, from 1990 to 2012, a declining percent of middle income households and an increasing percent of higher income households. Because of this, it will no longer work to “market down the middle.” Segmentation and distinct approaches are becoming even more essential.

 

“North America Retail 2020” reveals new shopper personas, industry size and structure and winning segments and retailers that both suppliers and retailers will significantly benefit from by becoming aware of. These drivers of change will ultimately define retailer and supplier initiatives and collaboration opportunities going forward. 

 

While the full version of this whitepaper is available only for GMDC members, the first page as a preview to the study can be found at www.gmdc.org/north-america-retail-2020. Donoghue’s videocast is available for both members and nonmembers in the GMDC*Connect Archived Videocast section.