Click image to view it in full size

Retail is undergoing a major transformation as trends converge to create new opportunities for the industry. Specifically, the rise of gen Y and gen Z, the digitization of retail, and the upcoming post-COVID-19 economy will compel retailers to rethink their strategies and embrace a more omnichannel and frictionless retail model.

Consumers’ rapid adoption of technology has completely changed shopping behavior, from high street brick-and-mortar shoppers to mobile-first social media shoppers. This fundamental shift in consumer behavior has compelled retailers to evolve more aggressively from physical to digital channels, thereby accelerating the advent of new business models.

Frost & Sullivan expects retail to continue down this evolutionary path, incorporating emerging bricks-and-clicks business models such as pop-up stores, virtual stores, interactive kiosks, and online hypermarkets. Retail will become completely self-service-based, frictionless, and omnipresent as companies introduce more digital touch points to consumers. Technology will support customers during the entire shopping process: making a purchase decision (advanced customer analytics), finding the right store (location intelligence), experiencing the products (digital reality), and paying for chosen items (e.g., mPayments, NFC, digital wallets).