An accelerated shift to digital as well as alternative shipping methods (drone delivery) will change the sector, with peer-to-peer resale, subscription, rental and digitally native brands becoming a bigger part of the landscape. This will change the role malls play. Expect to see more experiential retailing, showrooming and the emergence of 3D printed products. An increasing shift to digital will mean more bricks & mortar store closures and ongoing expense pressure to keep up with consumer demands.

Company specific thoughts: “Faster to course-correct”

All retailers are exposed to the changing retail landscape. But what sets American Eagle Outfitters, Lululemon, Nordstrum, Ulta Beauty, Urban Outfitters and Tiffany & Co. apart from the rest is that they understand what the future of retail entails – more personalization, added conveniences, experiential retailing and fast delivery. They are investing heavily in growth initiatives (even though it means near-term margin pressures) and are faster to course-correct and react to changes.


Consumer: Up close

The future of the Consumer sector will be determined by those who are willing to reinvest, adapt and turn future threats into opportunities.