A.T. Kearney Partner's Michael Brown Gives His Outlook For Retail in 2020

The video discusses consumer spending trends, highlighting the challenges faced by legacy retailers in adapting to new shopping behaviors. It explores market fragmentation due to digital startups and emphasizes the importance of an omnichannel strategy. The transition of digital brands to physical stores is examined, along with the cost challenges of return programs. The video also covers grocery store competition and the trend of store closures and openings, stressing the need for retailers to become platforms offering more than just products.

What is one of the main challenges faced by legacy retail players according to the transcript?

• Excessive advertising costs

• High employee turnover

• Inability to adapt to new consumer shopping behaviors

• Lack of product variety

What is the key feature of an omnichannel retail strategy?

• Focusing solely on online sales

• Offering discounts on all products

• Combining online and physical store strategies

• Reducing the number of physical stores

Why are digitally native companies opening physical stores?

• To focus on local markets only

• To achieve scale and reduce customer acquisition costs

• To reduce shipping costs

• To increase online traffic

What is a potential solution for retailers to manage the high costs of return programs?

• Offering unlimited free returns

• Implementing a membership program

• Increasing advertising budgets

• Reducing product prices

How are grocery stores adapting to changing consumer food preferences?

• By offering more raw ingredients

• By reducing store hours

• By focusing on online grocery delivery

• By providing prepared meals and in-store dining options

What trend is observed in the number of brick-and-mortar store closures?

• Stability in the number of closures

• An acceleration of store closures

• An increase in new store openings

• A decrease in closures

What strategy should retailers adopt to engage customers beyond just selling products?

• Becoming a platform with content, community, and services

• Offering discounts on all items

• Reducing the number of product lines

• Focusing solely on physical store experiences