Top 5 Craziest Retail Predictions for 2019
Let’s be real, 2018 was one hell of a year for the retail industry. It doesn’t matter if you were a stakeholder of mass, grocery, specialty or digital, retailing changed faster in these last twelve months than any period in recent history. As crazy as this sounds, I think 2019 will make 2018 look like a sloth. As the economy edges toward a likely challenging phase, the biggest players will be out for blood to ensure they control the biggest percentage of of discretionary income.
So, without further ado, here are my five biggest retail predictions that will shake the retail industry in 2019!
Facebook, Instagram, Messenger, and/or WhatsApp Become A Full-Fledged Retailer
Facebook’s family of apps know more about us than we know about ourselves and with billions in their ecosystem, its just a matter of time before they leverage it for direct commerce. Currently, they have several “irons in the fire” with;
- Facebook Marketplace
- Instagram Shopping (standalone app)
- Facebook Watch In-Video Shoppable Links
- WhatsApp and Messenger Conversational Commerce (like WeChat in Asia)
Social commerce is one of the most important retail trends and Facebook and its different apps will be at the core of this battle. Combine the facts that Amazon Seller Central is getting tougher to make a profitable revenue stream and how the Facebook advertising platform is one of biggest and best spends for most small companies and you could have some heavy moves in 2019 by this tech giant.
Amazon Buys Another Physical Retailer
I think Amazon acquires Kohl’s in 2019. The two retailers have already started to get into bed together in 2018 with about 100 Kohl’s locations excepting Amazon returns. It might be another “less publicized” partnership of Kohl’s though that Amazon is most paying attention to with selling groceries with discounter Aldi. This test data will be enough for Jeff Bezos to pull the trigger and buy Kohl’s and turn the department store into a mashup of Amazon Go, Amazon 4-Star and Whole Foods.
As a bonus prediction, I think Amazon buys shuttered Sears and K-Mart locations that are in areas that help their distribution network. This real estate is going to be available on a fire sale and Amazon will be able to convert some of the urban locations into micro-shipping points.
Walmart & Sam’s Club Actually Become Warehouses
Walmart has been winning the battle of e-commerce grocery because of their decision to go all-in on click-and-collect. Click-and-collect has become the preferred fulfillment choice of e-commece grocery and its being driven my Millennials. This will not stop in 2019 and Walmart and Sam’s Club will transform part of their square footage into an optimized e-commerce warehouse of the future. They will have efficient outside areas for pickups, streamlined pick, pack, and checkout stations for third-party and internal delivery employees. They will also start to use locations as micro-shipping points for pure-play e-commerce.
As a bonus prediction, I think Walmart buys a on-demand delivery program like Postmates, DoorDash, or GrubHub. I think Walmart could build it because of their vast logistics knowledge but they will need to be fast and acquisition seems like a better option in 2019.
Amazon Moves Past 1000 Total Physical Locations
Not counting the predicted acquisition above, Amazon will grow its physical locations well past the estimated 600 they have at the end of 2018. The darling of this physical store expansion will be Amazon Go. The cashier-less convenience market in urban areas will continue to be a hit with Millennial consumers. I am guessing Amazon will have well over 100 of these opened before the end of the year. They will take this technology and start retrofitting Whole Foods Market locations and every other new concept that they launch in 2019. At the same time, Amazon decides to start selling its Amazon Go technology like it did with AWS. This creates another billion dollar business from internal technology that they built solely for their needs only.
Build, Buy, or Partner…Big Time Partnering!
Some of you probably scratched your head when Kroger and Walgreens announced their partnership recently but this will be the new normal in retail. Reagrdless of size, physical retailers are willing to try out different things in 2019. Look for retail powerhouses to get in bed with each other to creating learning opportunities. Physical retailers are all trying to figure out how they stay relevant and where they fit into the future of retail. Look for more of them to work together on…
- Pop-up shops
- Store Within a Store Concepts
But, also look for them to seek partnerships with digital brands and social influencers that have amassed huge followings like Glossier.
