will have a more profound impact
on retail in future years. Amazon
Prime, Amazon Fresh, Wal-Mart’s
ShippingPass, and other approaches
to executing the “last-mile”
and same-day delivery enable
online retailers to reach more
customers with more products.
• Evolving Consumer Demographics.
America is aging. The impact of
baby boomers has driven U.S. retail
for decades, but millennial shoppers
embrace these new trends and are
just beginning to enter their peak
spending years. These and other
key trends generally have a more
significant impact with millennials,
and they will be the key demographic
for retail over the next 30 years.
The rise and impact of Amazon and
online retail is now part of history, but
the retail story continues to unfold. The
dramatically altered retail landscape
is littered with the remains of well-known and historical retail brands that
have gone out of business, with others
operating under Chapter 11 or in peril.
Retail survival demands creativity
in tackling a shifting consumer
mindset, advancing technologies, and
competitive pressures that place new
demands that did not exist 10 to 15 years
ago—or perhaps even six months ago.
Retail executives and their teams must
be willing to accept new challenges and
deal with uncertainty about the future
and what it may take to survive and
thrive, and show a willingness to do the
“dirty work” necessary to succeed. They
must engage in a process of continuous
renewal that allows companies
to restructure and revitalize—
before it becomes a necessity.
Renewal Challenge 1: Evolving
As 2015 began, millennials overtook
baby boomers as the largest generation
of adults over the age of 18. These
shoppers are entering their prime
spending years and will dwarf the
impact of the aging baby boomers
on retail sales in the years to come.
A consumer survey conducted by the
authors' firm in August 2016 set out