Retail spend will rise to £377 billion over the next decade, a new report has suggested.
With a rise in discretionary income and the emergence of the “considered consumer”, Hammerson’s The Reshaping of Retail report suggests that retail spend will increase 26 per cent over the next 10 years.
Collaborating with retail analyst Conlumino, Hammerson discovered that the discretionary spend reduced by the recession is set to “moderately” increase.
CEO of Hammerson David Atkins explained: “The retail environment is changing more quickly than ever.
“The digital revolution is having a profound effect on the way people shop, and how retailers operate. We’re entering a new era of buying behaviour and one of the considered consumer. “This is a change in mindset to the pre-recessionary times.
“Online, and particularly the use of mobile devices, will play an ever more important role as part of the multichannel mix and help improve the shopping experience.”
The report anticipates that 69 per of consumers will use an average of three or more channels by next year. It also predicts m-commerce will become a direct sales channel in its own right in the coming years.
By 2020, Hammerson forecasts that mobile retail will have increased 1,758 per cent to £53.9 billion of direct and indirect sales, which is around a quarter of all retail sales. Despite this, the report notes that retailers need to concentrate on in-store trading and the performance of their physical units.
Store numbers are predicted to decline 10.3 per cent between 2010 and 2020, with Hammerson predicting that traditional high street retailers looking to expand will favour out-of-town retail parks to town centre locations.
“Retailers need to ensure that all stores are trading well,” the report stated.
“This means moving away from a ‘one size fits all’ store portfolio to ensure local and tailored demographic demand is met.
“The importance of each store in heightening brand awareness will rise markedly. It will become imperative that stores command strong experiential attributes, showcasing a retailers’ full product offer.
“Tailoring propositions in line with the rise of mobile is as important now as it was for online investment a decade ago.”
In agreement with the report, David Atkins concluded: “As ever, in the cut-throat UK retail market, there will be winners and losers. But for those in the retail market who continue to meet and anticipate customer needs, there will be exciting opportunities ahead.”