More ‘Splintering’ Ahead in Consumer Spending

Personalization through AI will be “imperative” for hard-hit generalist retailers, including US department stores, says Deborah Weinswig.

NEW YORK CITY—Commoditized retail may have tougher sledding this year as consumers favor retailers with strong identities as well as nontraditional channels, says FGRT. The think tank sees e-commerce, technology and changing store formats all making further inroads into reshaping traditional retail.

“We see no letup in the splintering of consumer spending in 2018, as specialist retailers offering ever-more choice will continue to peel dollars away from midmarket behemoths,” writes Deborah Weinswig, FGRT managing director. She adds that this year, “we expect shoppers to continue to turn to new retailers, marketplaces and channels, while retailers look for further collaborations to future-proof their offerings.”