2020 retail industry outlook - Convenience as a promise - Deloitte
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2020 retail industry outlook Convenience as a promise
Miguel Pochat
Partner | Consumer Industry Leader
Rosario Norte 407, piso 9, Las Condes, Santiago, Chile
mpochat@deloitte.com | www.deloitte.cl
¿Qué le espera en 2020 a la industria de Consumo?
Los diferentes temas de innovación para el retail que hasta hace unos años eran prototipos e ideas,
hoy los vemos llevados a la práctica y cambiando la forma en que nos vamos a relacionar como
consumidores con el retail.
Este estudio de Deloitte se centra en cuáles son las nuevas expectativas de los consumidores en
referencia a la experiencia que quieren vivir al interactuar con el retail. En este sentido, lograr
entender que quieren los consumidores y llevarlo a la práctica está siendo la gran diferencia entre
los retailers que están ganando esta batalla y los que no. Vamos a ver en el futuro cercano esta
diferencia marcándose mucho más, los que lo entienden y lo lleven a la práctica correctamente, van
a liderar el mercado.
En resumen, hay 3 grandes dimensiones de expectativas de los consumidores hacia el retail:
Precio justo: esto no quiere decir precio bajo, sino un precio justo, transparencia en la razón
detrás del precio. Qué valor me entrega un producto por sobre otro, por que debo pagar
más o menos por él. Esto en especial ahora con las tecnologías de inteligencia artificial
disponible donde puede definirse un precio de manera dinámica en función de infinidad de
variables resulta clave
Calidad y variedad de productos: ahora que estamos en la era de combinación de producto
con servicio, las posibilidades de productos crecen exponencialmente. La variedad surge la
interacción y uso del producto con el consumidor y las propuestas para vivir la experiencia
del producto de manera particular para cada uno. En esta combinación no hay espacio a
errores de calidad: calidad en términos del producto y del servicio que se entrega para su
consumo.
Conveniencia: la tercera y más importante característica que buscan los consumidores es la
conveniencia. Esto es que la experiencia con el retailer sea única, sea simple, sin fricciones,
sin importar el canal o el momento de interacción: investigación, compra, devolución.
A su vez, en este contexto de digitalización de la industria, es importante entender que las tiendas
físicas no están muertas, no van a desaparecer. Por lo contrario, son una pieza fundamental en esta
nueva estrategia de focalizar los esfuerzos en conocer al consumidor y entregar experiencias
únicas. La digitalización del negocio es fundamental para satisfacer estas demandas de
conveniencia, esta nueva experiencia personalizada, con una alta interacción con los consumidores.
2020 retail industry outlook | Convenience as a promise
For consumers, shopping in today’s environment is the
most convenient it has ever been. Forward-thinking retailers
are setting the expectations bar high for the rest of the pack.
In this year’s outlook, we explore convenience, what it means
today, and how retailers can position themselves to take
on the challenge.
Contents
Convenience matters 3
Sizing up the year ahead 3
Rising customer expectations and its cost 3
Economic outlook 4
Convenience must be enabled through the entire organization 4
Marketing as a differentiator 4
Connect: Digital enablement 6
Revisiting product strategy 6
Stores aren’t just stores anymore 7
Deliver on the promise through supply chain 8
Convenience is more than a state of mind 9
22020 retail industry outlook | Convenience as a promise
Convenience matters Sizing up the year ahead Rising customer
Predictably, 2019 was a year in transition. Uncertainty is the name of the game when
expectations and its cost
There was stability in the positioning of it comes to how the next 12 months will play
Given the rapid pace of technological
the top five retailers, uncertainty among the out. With a possible recession and potential
advances and social transformation,
majority, and a few notable bankruptcies. fallout from tariff tensions looming, retailers
expectations for outstanding customer
The emphasis on understanding what should have a game plan that can handle
service and experience are now being set
consumers really want continued to adjustments when and as needed.
by those outside the business. Consumer
expand the gap between the leaders
expectations are going global, while age-old
and everyone else who followed. For While the overall economy might be losing
national and industrial divides are shrinking.
retailers, understanding how consumer its shine in 2020, it presents retailers an
To stay competitive, many retailers must
expectations are evolving has never been opportunity to review their playbook for
make a difficult choice on what to offer and
more important. riding out a downturn. To strengthen their
how to make sense of it, profitability-wise.
preparedness, retailers should focus on
The good news here is that there is some four factors critical to success:2
What this means is that there is a necessary
predictability when it comes to what
•• Determine why they matter conversation around tough tradeoffs—
consumers want. In our recent holiday study,
what really matters to the consumers,
over two-thirds of US adult shoppers said •• Build a war chest to invest in growth
and what must companies have internally
they hold price, product, and convenience
•• Embrace technology and automation before going after the shiny new object?
above all when it comes to what they want.1
to better leverage growth For instance, our holiday study revealed
•• Fair price. With drastically increased that more than 85 percent of the holiday
•• Look outside their four walls
transparency and automated pricing shoppers picked free over fast shipping.3
to embrace partnerships
making it difficult for a fair price to be the While some companies have publicly
final differentiator, price alone does not reported spending close to a billion dollars
Overall, retailers will likely have to be more
drive consumer loyalty. in one quarter to make free or fast shipping
judicious with investments and flexible with
options available, these investments should
•• Quality and variety of products. their plans—ready to adapt, whether or
be made with sustainability in mind and with
Because personalized and commoditized not a recession comes or if tariff tensions
cost transparency at the core.4
products are offered in so many formats continue. It seems that for 2020, those
and channels, there is an overabundance retailers who prepare for the worst will likely
Based on the shopping context, retailers
of choice. fare the best.
will likely have to play a balancing act,
•• Convenience. Whether in the store or with trade-offs between various themes
online, consumers want a friction-free that influence convenience―speed of
experience, from finding ideas and transaction, value to customer, and efforts
inspiration to making purchases, managing for retailers (for example, breadth of
returns, and advocating for the brand. assortment, cost of operations).
With the convergence of supply chain,
digital technologies, and other innovations, Figure 1. Trade-offs for meeting customer expectations around convenience
convenience is becoming a much more
important piece of the equation.
Sp
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to
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Convenience
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Efforts for retailers
32020 retail industry outlook | Convenience as a promise
At its very core, convenience is a to demographic growth. With the labor Marketing as a
human-centered experience that provides market strong, consumer sentiment remains
customers with a feeling of ease. There elevated despite a bit of volatility in recent differentiator
are many ways that consumers can months. Relatively low headline inflation
perceive convenience: is also likely to aid consumers, even as low In one sense, convenience is about elevating
interest rates—the Federal Reserve cut the human experience. It is something
•• “Saves me time (same-day shipping)” that goes beyond the four walls of the
rates three times in 2019—keep borrowing
•• “Easy access to more offerings” costs low. organization and includes both customers
and the workforce. In a recent study, we
•• “Special access to services that meet found that five key pillars contribute to
Consumers, however, face three key
my needs” elevating this experience:7
challenges. First, gains in the labor market
•• “Easily see the added value I’m receiving” have not translated to strong wage growth. •• Being obsessed with all things human
Real average weekly earnings grew a mere
•• “Meet all my needs in one place” •• Anticipating and proactively delivering
0.8 percent in 2018 and, by the end of 2019,
were up by just 1.2 percent. Second, as on human needs
What many people are looking for is
the impact of the 2017 tax cuts fizzles out, •• Executing with humanity
something that simplifies life while
disposable income is likely to slow—we
delivering a positive experience. People •• Being authentic
forecast real disposable personal income
want to “outsource” the work of getting
growth to slow to 2.3 percent in 2020 from •• Working to change the world
products. Instead of focusing on the act
3.24 percent in 2019. Finally, consumers
of purchasing products, they want to focus
also face risks from any escalation of trade Marketing in this age of constant disruption,
on the act of using them. That’s what
tensions, which, in turn, could dent growth with industry ecosystems evolving and
appears to really matter.
and employment as businesses hold back fusing together, may seem like a Herculean
on investment spending and hiring. This task. To be successful, organizations should
Economic outlook will likely hurt equity markets too, thereby constantly define and redefine what matters
negatively affecting consumer wealth to their customers—truly enhancing either
The retail industry should be prepared and hence, spending. the human experience or the convenience
for changing economic conditions in the factor. The reality is that it is no longer
coming year. The economy slowed in Overall, we expect real consumer spending enough to market product and price
2019, with real GDP growth declining to growth to slow to 2.2 percent in 2020 from alone. While the quality of the product is
1.9 percent in Q3 from 3.1 percent in Q1.5 2.5 percent in 2019. still important, the point of differentiation
Personal consumption growth has been between brands is now often dependent on
steady, on average, but investment growth
has weakened. Business investment, for
Convenience should their ability to market the service, delivery,
and overall convenience that they provide.
example, contracted in the second and be enabled through the Things like same-day delivery, curbside
third quarters of 2019, while residential
investment has posted just one quarter of
entire organization pickup, and buy online/pick up in-store
have become table stakes. The competitive
growth since Q1 2018. With the outlook for advantage is derived from presenting these
Offering convenience is not an overnight
global growth dimming and the uncertainty components more effectively than the
undertaking. Because there are so
of trade tariffs unlikely to go away soon, competition does.
many moving parts involved, enabling
we expect real GDP growth to slow to 1.6
convenience touches almost every part
percent this year from 2.3 percent in 2019.6
of a retail organization, creating challenges
throughout. Convenience, then, should
Consumer spending outlook
be built into the fabric of the entire
Consumer spending is the lifeblood of the
organization; otherwise, it can become
retail industry. A key source of strength to
a follow-on marketing gimmick without
consumer spending has been a healthy
the wherewithal to make it profitable.
labor market. Unemployment is low
Convenience is also a moving target;
(3.6 percent in October) and so far, the
what was convenient yesterday is no
economy has generated, on average, about
longer convenient today, and what’s
167,000 jobs per month—lower than the
convenient today is not going to be
figure for 2018, but much higher than the
convenient tomorrow.
estimated 75,000–100,000 required due
42020 retail industry outlook | Convenience as a promise
Transparent pricing strategies been building a strong following as more entrée from another. As consumers grow
Clipping and carrying coupons has never and more consumers are weary of the fine to expect this level of ease and individually
been convenient, but consumers did print, high-low pricing, and other traps they catered service from all providers, it is the
so for lack of choice. With the digital inadvertently fall prey to. retail players who take note—the disruptors
solutions available today, consumers and niche players ready to attend to them—
are distinguishing the options that are Paying premium in favor of who are seeing growth.
most convenient to them. In Deloitte’s more convenient options
recent holiday study, 74 percent of the Retailers have yet to fully embrace that Factors like new competitors, convergence,
respondents said that price discounts were consumers are willing to pay a premium and the blending of physical and digital
the most appealing promotional offers by for convenience. Whether for the service, operations are pushing businesses to
retailers.8 However, shoppers don’t want delivery, or as tips, premium charges find alternative revenue streams. In the
to be standing in the store searching for are already a regular aspect of meal and search to create value for consumers and
a coupon on a mobile device, much less grocery delivery services. These relatively stakeholders while still capturing value for
have to remember to bring a printed copy. new delivery services are changing the way themselves and investors, many retailers are
Depending upon the business context, consumers dine, shop, and get entertained adopting new profit models that prioritize
retailers should pick the most fitting pricing today. Meal delivery services, for example, consumer choice and fulfill demand:
strategy to build transparency. For example, feature an easy-to-use app and provide subscriptions, marketplaces, fulfillment-as-a-
mass merchant and grocery chains have customizable meals from a multitude service, web and cloud services, and more.
found everyday low price (EDLP) to be of restaurants or “dark kitchens,” even
most apt for their businesses. EDLP has delivering an appetizer from one and an
Figure 2. Retail models have evolved, creating a variety of profit drivers
Retail profit models
•• Subscription •• Logistics as a service
•• Private label credit card
•• Third-party selling •• Media and entertainment
•• Membership or co-op model
Core retailing •• Payment platforms and financial •• Web and cloud services
•• Digital/DTC
•• Consumer services •• Fulfillment services
•• Store within a store
•• In-house media management •• Internal venture funds
Traditional
Newer to reta
il
52020 retail industry outlook | Convenience as a promise
In order to offer more convenient products Connect: Digital Fifth-generation network technology
and services, today’s retailers should (5G) will likely play a key role in advancing
start by understanding the consumer’s enablement retailers’ digital aspirations to real-world
behavior around each available option. applications in the coming years. With its
In the past, store layouts were used as a On Singles Day (November 11) in 2019, ability to speed up the transfer of data by
tool to influence shopper behavior. Big- Chinese e-commerce giant Alibaba set a nearly three times, 5G’s true power will be
box retailers, for example, would place new sales record of $38.4 billion in gross in engineering the connection of millions of
perishables and groceries in the rear of the merchandise volume in just 24 hours. devices across the world to provide a richer
store, drawing consumers through aisles of What’s more astounding is that that over experience to the customer. Some estimates
other products before reaching them. Some 90 percent of sales were enabled through predict that the improved connectivity from
could say that shoppers found this grocery smartphones. While that rate of engagement 5G will likely add $12 billion in retail revenue
path to be a convenience, allowing them to is unheard of in the US, smartphone use by 2021.12
pick up other essentials despite originally was predicted to hit an all-time high of 34
making the trip for groceries. This view does percent for Cyber Monday sales in 2019,10 In retail specifically, 5G will directly affect
not stand today. To adapt to the change and the smartphone as an e-commerce digital engagements, analytics, IoT, AR/VR,
in consumer mindset around grocery engine is only going to grow. Deloitte’s 2019 and even drone technology by providing the
shopping, some major brands have holiday study also revealed that mobile has connectivity boost that can enhance these
changed their approach. become the platform for holiday shopping, capabilities exponentially. However, the
with 70 percent of mobile shoppers having full breadth of 5G not only requires better
Today’s retailers are challenged to balance planned to use a smartphone to make capabilities from networks, but also higher
consumer convenience with in-store needs. a purchase. Payment gateways, mobile technologies in the hands of retailers and
Strategies to consider to address the games, and mobile livestreaming have been customers. While these applications will
gap include: noted as key areas that made smartphone not come to life in the immediate short
e-commerce so successful on Single’s term, forward-looking retailers should
•• Use data, but open the aperture of Day.11 As retailers become more digitally begin laying the groundwork for it now
retailer’s view. By utilizing data coupled forward, it is imperative to keep in mind that and continue to scan the horizon for
with advanced analytics, retailers could digital enablement across all aspects of the deployable applications.
expand their understanding of consumer customer journey is important.
behavior, including what shoppers are
doing pre– and post–store visit. This can The shift towards digital enablement Revisiting product strategy
allow the retailer to expand their view is inevitable for retailers if they seek to
beyond the traditional competition. explore new business models or add new Shoppers have grown accustomed to getting
revenue streams through acquisition of their “first-choice” product with the click of a
•• Understand local trends. In a recent
digitally native companies. It is not just tools button and having access to “endless aisles”
Supermarketnews study 9 which polled
or applications or gadgets or enterprise of e-commerce when what they want isn’t
over 1,000 US adults, 76 percent said they
systems. In today’s environment, it can be in the store. Traditional retailers have also
would be more likely to order household
the straw that breaks a retailer’s back. A upped the ante by building up inventory to
items locally if they could get same-day
personalized experience, highly interactive match the agility of e-commerce players.
delivery, like Amazon offers in many areas.
This implies that a hyper-emphasis on local engagement, and convenience in all
shapes and forms require superior digital To position themselves as flag-bearers of
delivery could be the key to winning at the
capabilities coming to life and have become convenience through product availability,
convenience game.
a critical part of consumers’ expectations retailers are moving towards creating
•• Be cognizant of data privacy. Retailers for retail. The most mundane events, like masses of unsold inventory in their
should approach their data strategy shopping for groceries, are becoming warehouses and distribution centers. This
cautiously. Many companies are looking increasingly digital, and the biggest retailers can lead to severe cost implications, such as
into data monetization efforts as a new are fighting it out to win every customer. write-offs and promotional expenses to sell
revenue stream, but digitally savvy In grocery, for example, even the smallest off the inventory. According to one study,
consumers have a strong understanding details, such as training an employee on nongrocery retailers in the United States lost
of what personal data is collected and the differences between Anjou and Bartlett $300 billion in revenues due to markdowns
potentially shared, are wary of too many pears, are likely to happen through highly in 2018, equivalent to 12 percent total sales,
or unwelcomed targeted offers. with inventory misjudgments being one of
digital AR/VR technologies.
the biggest reasons for the markdowns.13
62020 retail industry outlook | Convenience as a promise
To address the consumers’ desire for
convenience, retailers should own the
narrative around product availability
by opting for “smart” merchandising
strategies to remain cost-effective. New
approaches are likely needed to influence
shopper demand and make that demand
more predictable and manageable. Such
interventions may include:
Configure shopper taste with
micro-brands. Retailers can work with
manufacturers to craft micro-brands
(off-shoots of major brands) that are
more aligned to the lifestyle or persona of
shoppers. With micro-brands, retailers can
utilize brand offshoots to gain more freedom
to experiment and have influence over
shopper demand volume. Express launched
a digital-focused, direct-to-consumer (DTC)
brand—UpWest—that includes a range of
apparel and accessories, as well as products
from third-party vendors.14
Augment product availability with
resale. The resale market is growing 21
times faster than the retail apparel market
for the past three years.15 A recent Deloitte By combining investments in AI and ML Irreplaceable node in order fulfillment
study showed that more than a quarter (27 technology solutions and rewriting sourcing journey. While retailers are still
percent) of holiday shoppers plan to gift policies, retailers can be at the forefront of contemplating their plans for fulfillment
resale items during 2019 holiday season.16 convenience, providing real-time product centers and last-mile delivery for convenient
The abundance of resale stocks could help availability without having to accumulate order fulfillment, physical stores play a
retailers address inventory availability unsold inventory. critical role in the supply chain. Retailers
requirements without having to order fresh are likely to accelerate conversion of excess
products. As consumer demand becomes space in their stores into micro-fulfillment
increasingly volatile and uncertain, more Stores aren’t just centers, especially in densely populated
retailers (for example Neiman Marcus17 and to store, anymore areas. As retailers plan to redeploy unused
Ralph Lauren18) are turning to partnerships store space, one likely hurdle could be
with resale retailers such as consignment Retail is not dead, and nor are the stores. redesign limitations due to clauses in existing
and thrift stores. Despite all the noise about digital, leasing agreements, thus, pushing more
undeniable domination of physical stores redesigns to owned storefronts.
Artificial intelligence (AI)/machine continues in the retail industry. In fact,
learning (ML)–based fulfillment brick-and-mortar accounted for nearly Data-powered experience. With many
systems. The latest AI and ML platforms 90 percent of all retail sales in the third socially conscious shoppers using their
can help retailers accelerate their order quarter of 2019, according to the US Census purchasing power as a demonstration of
fulfillment process. These technologies Bureau.19 In 2019, digital natives turned to support, and with research showing that
allow retailers to automatically map demand physical store pilots, and traditional retailers shoppers still rely primarily on stores for
conditions with stock availability across rolled out digitally powered physical stores. product discovery and inspiration,20 having a
stores, warehouses, distribution centers, In 2020, it seems retailers should up their deep understanding of one’s customers is a
and even on-road fleet. For example, a game with stores that can really pull off the top priority. Online retailer Amazon is piloting
US-based footwear manufacturer acquired convenience gambit. So, what is in store stores that are stocked with products with
multiple startups with analytics and machine for stores? the most appeal at the location. Amazon
learning capabilities in the past 18 months. 4-star stores are curated with a selection
These acquisitions are aimed at combining of products based on local purchase
RFID technology with predictive analytics preferences and online customer reviews.21
to accelerate inventory matching and order
fulfillment to meet consumer needs.
72020 retail industry outlook | Convenience as a promise
Hub for empowered workforce. At the Deliver on the promise •• Inventory strategy in a competitive
end of the day, store employees are the supply chain is built on end-to-end
face of the retailer for in-store shoppers; through supply chain visibility and capability to quickly flex
hence, empowering them will likely be key to with changing demand. Optimal quantity
delivering on the promise of convenience. In the era of the “Amazon effect,” the supply and timing of inventory to align with
This includes in-store automation to take chain of brick-and-mortar retailers should sales and production capacity are key
care of low-priority tasks and providing the heed the title of Marshall Goldsmith’s to enabling smart inventory capabilities
right technology tools to allow associates famous book: What got you here won't get you and reducing waste.
to engage consumers in a productive there. These traditional retailers, once touted
as pioneers in supply-chain innovations, are •• Flexible network enables supply chains
manner. Examples:
now struggling to match new standards set to move assets faster than ever. Physical
•• In-store concierge app to allow associates by e-commerce and digital native players. network needs to change and evolve to
to actively engage with shoppers based One of these “new” standards―effortless cater to speed as shippers are forced to
on their preferences and stock availability “ship-to-door”―is not only the norm in reevaluate their service-level expectations.
(for example Stein Mart, a national shopping these days, but also increasingly Retailers with brick-and-mortar stores
specialty off-price retailer, has enhanced free. While not making money in retail are leaning on their “buy online, pick up
the shopping experience in its stores by operations may not be a losing proposition in-store” or “store-to-car” delivery options
empowering store associates with for some cash-rich companies, many to provide flexibility and predictability
Mad Mobile’s concierge solution for retailers are charging forward by offering a without having to transport the last mile.
mobile POS and endless aisle)22 slew of options keeping convenience top of •• Data and technology adoption is
•• Real-time inventory checks with robots mind. For these retailers, solving for a nimble allowing retailers to transform their supply
powered with 5G networks (for example and smart supply network can require new chains with unprecedented visibility
Ahold Delhaize, an international food thinking. There are four key trends in this and insights from data. Technology
retailer, is rolling out in-store robots across area that retailers will likely adopt in the integrations should be focused on
500 stores to perform repeatable tasks short term: understanding the customer journey and
such as shelf stock scanning)23 •• Urban fulfillment will give retailers the providing a substantive improvement.
ability to serve the connected consumer
As their role changes, whether by in large metropolitan areas with same-day
coincidence or by design, physical service. While urban warehousing comes
stores are going to be at the forefront with a high price tag, utilization of local,
of turning the retail industry into an small delivery vehicles and reduction in
avenue for convenience. distribution spend can result in a net total
cost savings.
82020 retail industry outlook | Convenience as a promise
Figure 3. Reverse logistics life cycle
Traditional focus areas result in siloed policies and processes
Supplier Return Return Logistics Merchandise Returns
collaboration policies options processes disposition analytics
Merchandise Time and credit Methods offered to Store and Determining if Understanding
assortments terms offered to customers to make warehouse products should be return drivers and
and allowances customers and returns in person or applications and returned to stock or costs incurred
to address special product through the mail transportation to require liquidation throughout the
product returns restrictions final destination product life cycle
Applying smarter insights throughout the entire pipeline achieves a cohesive reverse logistics strategy
Returns, returns, returns Convenience is more •• Take stock of your organization as a
Traditional retailers are also placing big bets whole―is convenience a common thread
in the area of reverse logistics to attract than a state of mind embroidered across the fabric of the
store traffic. In July, Kohl's completed its organization? Is convenience deployed
nationwide rollout of its Amazon returns As we think about the myriad of new in every department, banner, and/or line
program in the United States.24 According and more convenient options that are of business?
to data published by inMarket, foot traffic going to come our way in 2020, there is
also something to say about deliberate •• Realize convenience is not a fad or
to Kohl's stores increased nearly 24 percent
inconvenience. Brands like Supreme have gimmick, but the new normal. You can
in the first three weeks since the rollout.25
created a cult-like following by making it only win on convenience if you follow
As more retailers use their physical stores
extremely difficult to access their products. through on the promise. Invest in
to accept returns on behalf of e-commerce
Across the world, invite-only consumers line convenience in the areas most aligned
players, cost is an important factor to keep in
up for hours, sometimes more than four to your brand promise.
mind. Emerging retail models such as direct-
to-consumer and subscription services hours, to get a few minutes in the store. •• Determine your shoppers’ willingness
and rental businesses are built to consume While this inconvenience or scarcity factor to pay for convenience and your
high volumes of returns as a part of their may attract some consumers, most retailers organization’s willingness to invest.
supply chains; anticipating returns with high- should focus making their products and Many of the recent retail or service-based
predictability data helps with their inventory services more convenient, not less. Here “unicorn” startups have gained billions
strategy. For many retailers, this creates a are a few steps to help move towards a more of dollars in investment based on a
behavior for which the supply chain is not convenient retail experience: convenience focus. What are you willing
currently designed. But to thrive in reverse •• Remember, convenience is not just free to invest, and how will you prioritize
logistics, retailers should move from return or fast shipping. Convenience is related according to your customer base?
policies into return strategies. to an overall consumer experience that
eases the shopper journey while providing By focusing efforts across your organization
additional services. It is very important and into your supply chain, new retail
to think about how you are defining business models can evolve. Winners and
convenience and, more importantly, losers will likely be decided on who can
what you are leaving out. execute these new ventures best. They
ultimately shape the future of retail.
92020 retail industry outlook | Convenience as a promise
Endnotes
1. Deloitte, “2019 Deloitte holiday retail survey,” 14. Retailwire, “Express Launches digital-first DTC
https://www2.deloitte.com/us/en/insights/ wellness brand,” November 11, 2019,
industry/retail-distribution/holiday-retail-sales- https://www.retailwire.com/discussion/express-
consumer-survey.html launches-digital-first-dtc-wellness-brand
2. Deloitte, “The next consumer recession: 15. ThredUp, “2019 Resale Report,”
Preparing now,” https://www2.deloitte.com/us/ https://www.thredup.com/resale
en/pages/consumer-business/articles/retail-
recession.html 16. Deloitte, “Let the holiday (re)sales begin,
https://www2.deloitte.com/us/en/pages/
3. Deloitte, “2019 Deloitte holiday retail survey” consumer-business/articles/let-the-holiday-
resale-begin.html
4. CNBC, “Walmart, Target shares tumble as
Amazon announces one-day shipping for 17. RetailDive, “Neiman Marcus takes minority
Prime members,” April 26, 2019, stake in resale site Fashionphile,” April 17, 2019,
https://www.cnbc.com/2019/04/26/amazons- https://www.retaildive.com/news/neiman-
free-one-day-shipping-puts-the-pressure-on- marcus-takes-minority-stake-in-resale-site-
walmart-target.html fashionphile/552936
5. Haver Analytics, sourced November 19, 2019. All 18. RetailDive, “Ralph Lauren turns to rental, resale
data other than forecasts is sourced from Haver as turnaround sticks,” November 7, 2019,
Analytics. https://www.retaildive.com/news/ralph-
lauren-turns-to-rental-resale-as-turnaround-
6. Dr. Daniel Bachman and Dr. Rumki Majumdar, sticks/566831
“United States Economic Forecast: 3rd Quarter
2019,” Deloitte Insights, September 17, 2019, 19. US Census Bureau, Quarterly Retail E-Commerce
https://www2.deloitte.com/us/en/insights/ Sales, 3rd Quarter 2019, Nov 19, 2019,
economy/us-economic-forecast/united-states- https://www.census.gov/retail/mrts/www/data/
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102020 retail industry outlook | Convenience as a promise
Local Contact- CHILE Authors
Miguel Pochat Rod Sides Nithya Swaminathan
Chile Consumer Industry Leader Vice chairman Senior manager
Deloitte LLP US Retail & Wholesale Distribution leader Deloitte Consumer Industry Center
+56 227 298 738 Deloitte LLP Deloitte Services LP
mpochat@deloitte.com +1 704 887 1505 +1 312 420 8875
rsides@deloitte.com niswaminathan@deloitte.com
Contributing authors and Retail leadership
Kim Frazier Daniel Bachman Jamie Lawrence
Principal Senior manager Managing director
US Consulting leader Deloitte Services LP Deloitte Consulting LLP
Retail, Wholesale & Distribution
Deloitte Consulting LLP Bill Kammerer
Shashi Yadavalli
Principal
Principal
Matt Marsh Deloitte Consulting LLP
Deloitte Consulting LLP
Partner
Global and US Risk & Robert Harrold
Jeff Simpson
Financial Advisory leader Senior manager
Principal
Retail, Wholesale & Distribution Deloitte Consulting LLP
Deloitte Consulting LLP
Deloitte & Touche LLP
Anthony Jardim
Bryan Furman
Jonathan Rothman Principal
Manager
Partner Deloitte Consulting LLP
Deloitte Services LP
US Audit & Assurance leader
Retail, Wholesale & Distribution Jean-Emmanuel Biondi
Kim Chook
Deloitte & Touche LLP Principal
Marketing specialist
Deloitte Consulting LLP
Deloitte Services LP
Clarke Norton
Principal Steven Nevill
US Tax leader Principal
Retail, Wholesale & Distribution Deloitte Consulting LLP
Deloitte Tax LLP
Deloitte Consumer Industry Center
Rama Krishna V. Sangadi Arun Tom
Executive manager Manager
Deloitte Support Services India Pvt. Ltd. Deloitte Support Services India Pvt. Ltd.
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