Lauren Leach: Think Tank: Taking the Temperature of Retail in 2018 – WWD
Lauren Leach wrote an article for WWD titled “Think Tank: Taking the Temperature of Retail in 2018.”
In light of recent headlines and store closing realities, it is not hard to surmise that retail is in many ways “under the weather” and in dire need of a strong dose of direction and creativity. Credit Suisse predicts, in fact, that 25 percent of the 1,100 enclosed malls currently operating in the U.S. will shutter in the next five years. Though I don’t quite agree with that prognosticating and certainly not for luxury “A” malls in urban areas, there is a cautionary tale to heed – one that must entail a proper balancing act between three primary elements: Bricks-and-mortar, e-commerce and delivery.
Still Strong Foundations
But aren’t bricks-and-mortar on the way out, you might say? Isn’t the Amazon factor destroying the traditional retail model? Not exactly. Currently, only around 9 percent of retail sales are conducted online. This is roughly the same percentage of nontraditional sales as took place through catalogues in their heyday. That said, online retail is sure to continue to rise; most likely into the 20-to-25 percent range over the next few years.