“The apocalypse!”
“Retailgeddon!”
“The Final Meltdown!”
“Crashes!”
“Bubbles busted!”
“Flight of the Shoppers!”
Many predictions about what’s next for retail and EDI in 2020 will have plenty of doom. And gloom.
Remember the end of 2018? There was no shortage of dire predictions about the imminent demise of retail and established data formats like EDI. As we look towards 2020, it’s no surprise that many futurists are just hitting Repeat.
But look closer and it’s obvious that while 2019 may have been rocky for some parts of retail, it was hardly the meltdown that many expected. Yes, some venerable stores downsized or disappeared entirely. But look beyond the doomsday headlines and a different picture, from brick-and-mortar to online, is revealed.
Best Buy, for instance, bucked the naysayers, and has turned in a very good series of quarters. So has that other Minnesota-based retail giant, Target. Maybe those cold winters help keep the thinking—not to mention the merchandise—fresh.
But it’s not only major retailers based in northern climates that are doing well. Atlanta-based Home Depot, Walmart, TJ Maxx, Costco—all quite different retail models—but each enjoyed successful years and seem well-positioned for success in 2020.
Of course, not all the news from 2019 was sweet. In fact, depending on where your products are sold, you may have described it as rotten. The Toys “R” Us bankruptcy and wind down was a serious blow—not fun and games. Regional retailers like H.H. Gregg folded their tents—or, more accurately, their foam drop ceilings—while Sears, Payless, Gymboree, and Charlotte Russe all declared bankruptcy. Store closings were announced by Party City, Barneys, and Walgreens. Many mall operators struggled mightily, especially those that were neither upscale nor discount—the middle ground was especially challenging. At any point during the year, it was fair to say that being successful at the retail level was about as easy and straightforward as wrestling an alligator with hands coated in movie theater butter.
But let’s get back to those positives. After all, many stores ramped up their customer-centric focus or carved out unique space in the marketplace—and those companies are exceeding expectations. Maybe even their own, if we’re being 100% honest.
If necessity really is the mother of invention, all the doomsday scenarios have prompted many to rethink all parts of their operations and make the kinds of changes that an easier market would not have required. Within the wreckage, the best retail brands found opportunity and growth.
With the 2019 retail business and EDI in the rear-view mirror, let’s look at what we see in our crystal ball for 2020.
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Further growth of eCommerce.
Well, duh. Yes, we realize that’s exactly what you’re thinking right now. Is it bold to predict that Amazon will continue to grow? That shoppers will buy an increasing number of products online? Obviously not. But no matter what you may have thought about online business in the past, it’s time to see it for the opportunity it has become. Even retailers that are firmly in the brick-and-mortar category are learning how to use online channels to boost sales. Synergy matters—a great store visit can lead to a steady stream of internet purchases, while a satisfying eCommerce experience can make a customer stop in to a physical location. Manage it all correctly and overall revenues will expand.
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Small batch won’t be just for artisan bread makers anymore.
Customize, personalize, be on trend—advances in software and manufacturing make it possible for brands to offer specific products to niche audiences or in narrow time windows. Retail has always been fast-moving but consumer tastes are more rapidly shifting than ever before. Making sales will require hitting a smaller sweet spot, and being able to shift goals mid-stride.
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No matter what you think about the data format, Electronic Data Interchange remains the primary way that retailers and suppliers communicate. The sooner you get it handled well, the better. There’s not much worse than using valuable time and resources to develop a great product or build your brand, only to see your business penalized for its inability to manage EDI according to retailer specifications. If you’re not doing EDI well right now, find another solution to make that happen. It’s too important to screw up in any year, let alone in a competitive environment like 2020.
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Millennials will get older.
Yes, it’s another, “Well, duh.” After all, nothing is quite as amazing as predicting the relentless march of time. But if you have spent the last few years trying to track the shopping habits of millennials—and who hasn’t—there’s relief on the way. Because millennials are starting to do boring things—buying houses, putting money into retirement savings, moving to the suburbs. But guess what? In 2020, Gen Z is the market segment you need to figure out. Is that good news? It can be—it’s an emerging generation with fresh spending power and a strong desire to move out of the basement of their parents’ house. But look out—many experts say this group is more penny-pinching than the generations before it. You may have to be more cognizant of price to appeal to them in 2020.
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Mobile will get more important.
If your mobile shopping experience isn’t as good as it should be, fix it. Like, stop reading this right now and go fix it. Not sure if it’s worth it? Count the number of times you saw someone staring at a phone today. And then compare it to the number of people you saw with an open laptop. Nervous your mobile isn’t good enough yet?
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The best EDI providers will deliver overall order management and system integration.
The days of viewing your EDI provider as a narrow specialist should be over. The best ones are adapting to the changing retail landscape by managing all your orders, even the ones that aren’t EDI. They’re also making it easier to handle direct-to-consumer shipping and integrating your EDI and order management with the system—ERP, accounting software, WMS— that powers your business. If you’re not getting more from your EDI provider, it’s time to start asking.
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The next hot product will be…
The days of viewing your EDI provider as a narrow specialist should be over. The best ones are adapting to the changing retail landscape by managing all your orders, even the ones that aren’t EDI. They’re also making it easier to handle direct-to-consumer shipping and integrating your EDI and order management with the system—ERP, accounting software, WMS— that powers your business. If you’re not getting more from your EDI provider, it’s time to start asking.
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Retail and EDI in 2020—buckle up.
When it comes to retail and EDI predictions for 2020, we're positive. Consumer spending has shown remarkable resilience, technology continues to create new demand, and the people still love to shop. Make your EDI transactions seamless, listen to consumer demand, embrace change—and you can enjoy a successful 202
