This is the third report in a short series looking at the application of artificial intelligence (AI) in retail. In this report, we explore what startups are doing with AI in the context of our proprietary CORE framework, which stands for Communication, Optimization of pricing, Rationalization of inventory and Experiential retail.
Each of our Sector Overview reports provides an essential briefing on a sector or market. In US drugstore retailing. Collaborations and alliances formed last year will manifest synergies in the form of innovation in offerings.
Blockchain technology has the potential to disrupt retail as it can decentralize processes through which retailers interact with partners, industry players and consumers, making operations more efficient and secure. We looked into the implications for this technology
A Guide to Entering China for Foreign Brands and Retailers, Part 3: Breaking into the China Market — Optimizing Marketing and Promotional Strategies for Singles’ Day
In this is the third report in our series A Guide to Entering China for Foreign Brands and Retailers, we focus on how foreign brands can use Singles’ Day as a springboard to enter China, leveraging our proprietary data on brands’ sales performance on Singles’ Day 2018 on Tmall.
Each of our Sector Overview reports provides an essential briefing on a sector or market. This report focuses on e-commerce.
Sector Overview: Convenience Stores — As Consumers Seek Ever More Convenience, Digitalization Prevails
The convenience store sector is changing to adapt to consumers who live in an increasingly digitalized world who expect both quality and convenience. E-commerce, hypermarket and supermarket operators are muscling into the space, opening their own smaller retail formats. We expect consolidation as M&A activity continues.
Sector Overview: Mass Merchants — Dollar Stores Expand, Mass Merchandisers Digitalize and Costco Widens Its Lead Among Warehouse Clubs
As store closures resume in earnest in 2019, dollar stores are bucking the trend, expanding rapidly. Look for technology to be a deciding factor in the coming years as brick and mortar companies integrate online and offline offerings.
New digital marketplaces have made the apparel and footwear market truly global, giving consumers access to brands and products once available only by traveling. Brands are bringing products to neighborhoods that previously had very little access to the latest fashion trends.
Sector Overview: US Department Stores — Off-Price Formats and Marketplaces are Winning (and Millennials are Shopping Department Stores)
U.S. department store sales will shrink 5.8% per year to 2023. In response department stores are expanding off-price, pairing with unique partners and seeking to right-size.
Rapidly changing consumer attitudes, sophistication and expectations have shaken the status quo in luxury, pushing purveyors into the tech-savvy 21st century. Those that don't keep pace with the new luxury consumers will be left behind.
Sector Overview: Beauty Brands and Retailers — Global Companies are Innovating with Independent Brands to Expand Portfolios
The $464 billion global beauty industry is seeing independent brands, diversification of traditional retailers, growth in men and children and new channels such as popups, medical retailers and pharmacies. Consumers are looking for “clean beauty” and dermocosmetics.
For US retail REITs, occupancy rates are improving, vacancies are decreasing and rent asking rates are increasing, but store traffic and other metrics remain negative. REITs are welcoming non-traditional occupants, particularly food. Just 20% of “A” malls generate 72% of all mall sales in the US.