A retail transformation is in full swing, and a host of powerful forces are shaking up the industry. New technologies are enabling disruptive shifts in customer behavior, and in turn, leading to the emergence of new business models and the proliferation of brands.
Disruptive forces are reshaping what it takes to succeed as a retail business, and driving incumbent retailers to change how they operate. The impacts are felt unevenly across the retail industry, with some segments seeing significance declines and others experiencing an increase in demand. As online sales are growing and in-store sales are declining, the industry is going through a generational change with many legacy retailers stuck in an unsustainable way of doing business.
Retailers must transform to grow or even to stay relevant and remain in business.
The pandemic has forced consumers from every demographic segment to replace physical with virtual interactions and move online. As a result, we are now witnessing entirely new levels of digital acceptance and literacy in consumer shopping behavior.
Constance Hunter, Principal and Chief Economist, KPMG US
In this report, we examine the factors shaping retail’s future—looking at today’s key disruptive trends and what will impact retailers through 2025. We review:
- core retail disruption
- changes in consumer demand
- shift from physical to online commerce
- overabundance of supply
- proliferation of platforms
- rise of new business models.
Also included are predictions about what’s next to come in the industry and a framework for retailers to evolve their business in order to thrive.
Retail as we know it is over. From supply and demand disruptions to shifting behaviors, retailers must transform to grow.
