Retail Reworked, Part 2: Shifting Consumer Demands and Behaviors

Executive Summary

In our three-part Retail Reworked series, we consider changes in spending trends, consumer demands and channel adoption, with a focus on the impact that digital channels and services are having on retail.

In this second report in the series, we discuss three prominent trends in shopper behavior and consider the drivers behind them:

• “I want convenience and immediacy.” Today’s shoppers commonly expect retailers to deliver added convenience such as on-demand services.
• “I am willing to sacrifice convenience for savings.” Shoppers have flocked to limited-service stores that arguably offer the antithesis of convenience, such as off-price stores, grocery discount stores, warehouse clubs and dollar stores.
• “I want alternatives to conventional retail.” Surveys show that a significant proportion of consumers are interested in renting products and trying services such as beauty box subscriptions.