It’s hard not to notice how quickly retail has changed in the last twenty years, and when I read this article from SupplyChainDigest, it really got me thinking. What the brick and mortar retail world will look like in 10-20 more years is anyone’s guess. The traditional retail sector is transforming before our eyes, with a big impact on retail and consumer goods manufacturers’ supply chains in the end. The Wall Street Journal reports that through April 6, closings have been announced for 2,880 retail locations this year, including hundreds of locations being shut by national chains such as Payless ShoeSource and Radio Shack. That’s more than twice as many closings as announced during the same period last year, according to analysis by investment firm Credit Suisse.
Can Retail Coexist with Ecommerce?
There’s no question that consumer shopping habits are changing. Much of that driven by ecommerce, but that change is being fueled by broader trends. Consumer trends, such as a big drop in spending time wandering shopping malls, which are as a category in deep financial trouble, are also making an impact. Retail stores are trying a number of techniques to draw consumers such as “In Store Only Coupons,” but those efforts are not making a huge impact. As more and more retail stores close and the retail marketplace changes, everything from product distribution, warehousing and manufacturing capacities to raw material needs will be impacted.
Consumer Product Manufacturers Need to be Ready for Changes in Retail
Consumer products manufacturers need to be prepared for these continued changes. Many processes and systems will need to be upgraded and improved. Many manufacturers are selling to third parties to sell their goods online and some are doing it themselves or through the retailers. Manufacturers will need the latest in system and business process technology to succeed. QAD can help tackle these concerns as well as future trends. Learn more about QAD’s cloud ERP solution built specifically for consumer products manufacturers. If you have any questions, please leave a comment — I’d love to discuss these trends and anything else that has to do with consumer products manufacturing with you!