Oliver Wyman Reveals 2017 Retail Predictions in its Annual Journal
January 09 2017 - 8:57PM
Business Wire
- Retailers are responding to the
needs of time-deprived individuals and predicting their shopping
habits, taste and choices
- Data use will enable retailers to
make increasingly accurate recommendations and predictions
- New technology means more people
will be employed to program software than stack shelves
- Distribution could become a utility
similar to gas and electricity
With digital technology re-shaping traditional retail and
radically transforming the industry into an information business,
global management consulting firm Oliver Wyman reveals its 2017
predictions for the industry as it launches its fifth annual Retail
Journal.
SELLING PRODUCTS IS OUT; SERVING NEEDS IS IN People used
to buy CDs; now they subscribe to music streaming services.
Traditional retailers have lagged so far. But food retailers could
make a start by customizing online shopping lists and suggestions
to meet needs such as a vegetarian, dairy-free, or
low-saturated-fat diet. Beyond food, subscription services could
manage clothing needs on the same principle.
RETAILERS WILL KNOW MORE ABOUT YOU THAN FACEBOOK Serving
needs effectively implies knowing consumers better. Facebook knows
what you say; retailers know what you do – as well as where, and at
what time. Much of this information will be very personal, and
providers will need to make sure customers are comfortable sharing
it. Over time, the more useful the services are, the more willing
customers will be to share information.
FEWER, SMARTER PEOPLE WILL WORK AT A SHRINKING HEAD
OFFICE The new business model will depend on crunching vast
quantities of data to understand consumers and suggest solutions.
That means digitizing the corporation in a way that empowers
managers to make quick decisions and drive rapid product
development. Retailers will abolish the physical head office
entirely, distributing small agile teams around the business.
HOME DELIVERY WILL BE UBIQUITOUS Given that many
retailers will need to deploy the same shipment service, delivery
might become a utility similar to gas and electricity, and be
regulated by governments to minimize traffic. One designated
delivery supplier for all retailers would be more efficient than
many vans from numerous companies.
THERE WILL BE HALF AS MANY LARGE GROCERS IN 10 YEARS’
TIME As these changes loom, international mergers are back on
the agenda. Many traditional grocers who survive will become
international behemoths that leverage synergies in sourcing,
back-office functions, and technology at the regional or even
global level. Or they’ll be nimble local players, which play up
their local adaptation to the max and win customers.
James Bacos, partner and global retail practice leader, Oliver
Wyman, says: “In the retail and consumer businesses, change is
happening at a rate and scale previously unimaginable. The new
landscape will present threats and opportunities in almost every
corner of the business – and much faster than in past upheavals.
Accelerated adaptation will determine who survives the ‘revolution
in shopping’.
“Underlying many of these predictions in our Journal is new
technology. Retailers already gather vast quantities of data on
customer behavior, and are increasingly using analytics to turn
this information into knowledge and to generate new business
models. Change is here, and it’s fast and large-scale. The choice
for retailers is whether to drive it, or be driven by it.”
Volume 5 of the Oliver Wyman Retail Journal explores how
retailers can adapt to the new retail and consumer landscape.
Articles included in this year’s journal focus on how retailers can
accelerate adaptation and understand the rules of the new game to
make the right investments.
About Oliver Wyman
Oliver Wyman is a global leader in management consulting. With
offices in 50+ cities across 26 countries, Oliver Wyman combines
deep industry knowledge with specialized expertise in strategy,
operations, risk management, and organization transformation. The
firm's 4,000 professionals help clients optimize their business,
improve their operations and risk profile, and accelerate their
organizational performance to seize the most attractive
opportunities. Oliver Wyman is a wholly owned subsidiary of Marsh
& McLennan Companies (NYSE:MMC). For more information, visit
www.oliverwyman.com. Follow Oliver Wyman on Twitter
@OliverWyman.
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Oliver Wyman Media:Gregor Ridley, +44 7342
053449Gregor.ridley@oliverwyman.com
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