Retailing Market Overview
The retail industry in the U.S. is in the midst of an epic transformation as traditional bricks-and-mortar stores—still the predominant retail channel—are downsizing and at the same time being reinvented to become more compelling and effective in a multi-channel world.
Over the last five years, retail industry sales in the U.S. have grown 2.4 percent, while e-commerce sales in retail have grown 12.5 percent. In Europe, we anticipate online retail sales will reach €191B by 2017, reflecting an 11 percent compound annual growth rate (CAGR) over the next five years. And contrary to expectations—for example, online shoppers are driven there by lower prices—retailers have discovered that customers who engage with them across multiple channels are 21 percent more profitable than those who shop on a single channel.
The transformation taking place is not simply about there being more channels. The ability that customers now have to shop in the store, online, on their mobile and share their experiences via social media is qualitatively changing the nature of retail:
Complexity. The traditional linear shopping experience—see ad, visit store, view product, compare options, make purchase—has given way to an extremely complex process that stretches across online, mobile, social networks and in-store experience.
Read the full Retailing Market Overview.