When you watch television or read the newspaper today, you might see reports and articles talking about the future of retail. Many of these reports use retail market analysis to determine which stores are seeing their sales grow and which stores are struggling. Although changes in the economy have reduced the amount of money that shoppers feel comfortable spending, a few retailers show that it's possible to stay afloat and thrive in this economy.
One top trend revealed by retail market analysis is the success of online-only companies. Amazon.com now accounts for 15 percent of total online sales and 28 percent of total sales among the top 500 companies in the world. The success of Amazon relies heavily on the company's partnering with individual sellers and stores. Although the company initially launched as a marketplace for books, movies, and music, Amazon now works with other businesses to sell everything from clothing to furniture.
Experts in retail market analysis believe that many stores and businesses will begin moving their locations in the coming years. According to Ben van der Meer, more than 11 percent of all retail buildings in the Sacramento area currently sit empty. The owners of those buildings need to increase rates on occupied properties to compensate for the loss in income, so many shops now see their rental rates increasing when it comes time to renew their leases. Those companies may move to find lower prices elsewhere. Hobby Lobby and several other stores in the Sacramento area have moved to less expensive properties to save money, rather than increase prices to stay afloat.
While some stores move on to remain on top, retail market analysis shows that companies are doing well in this poor economy. Retail powerhouse and home improvement giant Home Depot experienced growth in recent years from both the construction sector and the private sector, while Kohl's gained sales thanks to its focus on brand loyalty. Retail market analysis often shows the importance of brand loyalty. A store-branded credit card, customer loyalty program, or special sales can increase business. Retail information on using social network marketing, rewarding frequent customers, or creating an app for your store are other ways to increase customer loyalty.
Journalists and reporters often provide readers with retail information that focuses on the poorest-performing companies. While many companies struggle in this economy, many others find success and watch their customer bases grow. Kohl's, Home Depot, and other stores have gained customers by focusing on sales, discounts, and expanding their customer base; other stores have had success by reducing expenses such as rent. Retail market analysis shows that retail stores aren't going anywhere in the near future. With the success of loyalty programs and online stores, you can continue running your business with less worry about overhead costs and shrinking customer base.
(Photo courtesy of stockimages / freedigitalphotos.net)
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