Ecommerce will account for 30 per cent of global retail sales by 2024, while physical store openings will nearly half.
According to a new report from Edge by Ascential, store based sales are set to dramatically decline, while new “hyper-store” openings between 2019 and 2024 are forecast to be just 1698, down from 3250 openings in 2014 to 2019.
Furthermore, the number of potential store openings will divebomb 94 per cent in “digitally-native” markets like China.
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Instead store space will be reallocated to host experiential initiatives, fulfillment processes and services, the report states.
“We believe that a large number of retail stores will become social, community-focused hubs, featuring cafes or spaces for charitable and wellness initiatives,” Edge by Ascential’s retail analyst Ioli Macridi said.
“If retailers adhere to most or all of these elements, they will align closely with modern consumer expectations and be in a better place to drive revenue growth.”