The elusive shopper: will pre-millenials save the physical store?

BearingPoint. Institute The elusive shopper: will pre-millennials save the physical store? Increasingly, multichannel retailing strategies have seen spending choices filter between physical and online stores. Although traditional bricks-and-mortar stores continue to out-sell their online competitors, in terms of year-on-year sales growth, digital is king. 'Net sales (USD billion)' 74.4 5.6 466.1 96.9 98.3 443.8 90.2 401.1 405.1 418.9 81.9 61.1 76.5 4.1 48.1 34.2 2.3 25.5 1.3 0.73 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Amazon Alibaba Wal-Mart Kroger 22% 36% 5% 1.8% (y-o-y growth 2012-13) In July 2014, Amazon became the first e-retailer to crash the 'NRF Top 10' – a list ranked by the public. Although 36% of shoppers now start their journey online, regardless of their age, it is predicted that e-commerce wil| command just 18% of the retail market in 2030 Customers are better connected, using more mobile devices, whether out and about or in 'lean back' mode at home. Research has shown that multichannel customers are worth up to four times that of single channel, bricks-and-mortar shoppers. 22% Online growth 16.8% 15.8% 14.5% 0.5% 0.9% 2.4% 3.4% Offline growth %23 Germany France UK US Store closures Although customers will continue to use the high street, by 2018 the number of stores in the UK will have decreased by up to 22% 2012 281,930 2018 220,000 Sources: BearingPoint, Harvard Business Review, retailresearch.org, digitalbookworld.com, nrf.com, Fevad, National Retail Federation BEIO05-FOR-IN