Top 10 Retail Trends of 2009

Working in advertising, I have spent a good deal of time working with CPG clients on brands and their in-store marketing challenges as well as mass advertising. This article focuses purely on the retail arm of the IMC plan. I give you – the Top 10 Retail Trends of 2009.

1. Decreased shopper marketing budgets for brands with less than $25MM sales. Larger brands have increased budgets for retail marketing, often reallocating dollars from mass marketing and turning to more measurable media
2. Increased pressure for ROI – Although there is money going to retail marketing, it hasn’t been smart to this point. Look for the upcoming year to focus on greater measurement attempts and greater ROI. Especially as the P.R.I.S.M. study launches and becomes mainstream.
3. Increased pressure to continue to not only gather shopper insights - but to also find a way to significantly mine and act on the data (turning data into insights – See #2 above).
4. Continued channel migration from independent retail environments to supercenters as consumers continue to tighten spending and save money on gas and commodity products. With large retailers like Wal-Mart and Target carrying an even greater diversity of products (and higher quality products), look for this trend to continue.
5. Increasing Trade-up/Trade-down mentality. As Consumers pinch pennies on an ongoing basis, they will look for small luxury splurges to escape their grim reality. We’ll see spikes in at-home spa products, wines/champagnes, gourmet meals (cooked at home vs eating out).
6. Increased personalization – consumers are less and less inclined to purchase luxury goods for the sake of being flashy and showy (the age of the ‘bling’ is out’). The luxury consumer is becoming more discerning. Luxury purchases will still be a significant component of consumer spending, but these luxury purchases will be as a result of in-depth thought and consideration. Purchases will reflect more of a person’s personality. Less about what it is and more about who I am. Consumers will increasingly want a story about the item they purchase.
7. Increase in purchasing of self-care products indicates a continued trend of consumers either consumers are spending more money on at-home products to avoid healthcare costs (which have dramatically increased). With an ever tightening economy, consumers are less reluctant to go to the doctor without an attempt at at-home remedies.
8. Increase in retail environments as destination/entertainment – with consumer spending decreasing, consumers will look to retail as a form of entertainment, but will want more out of the environment than just shopping (getting more for their money). They will expect greater entertainment, and an enhanced ‘experience’ that engages all the senses.
9. Increase in savings vs. impulse shopping – if and when the gov’t does offer a stimulus rebate, look for more consumers to either save this for a rainy day or retire debt. Many will be less inclined to simple blow it on impulse purchases. Those that do choose to spend the money will most likely spend it on considered purchases that have been put on hold because of tightened spending.
10. Continued ‘green’ movement – Look for the continued ‘green’ or ‘evo-friendly’ movement to continue. Although sometimes more expensive, doing good for our environment and being socially responsible gives people a feel-good sensation that goes beyond money.