Niche retailers arepositioned to lead the market in 2018. As retail evolves andbecomes more experiential, small retailers focused on a specificdemographic segment are emerging and developing loyal customerfollowings, according to David Sheldon, VP ofengagement for Retail Design Collaborative.Simultaneously, we have seen several large brands condense or fallaltogether, reasserting the strength of these smaller brands.

Sheldon uses the example of Erewhon, a boutique grocery thatfocuses on healthy, high-quality food. “The result is that they arenot the biggest brand on the planet, but they have an extraordinarybrand following,” Sheldon tells GlobeSt.com. “Those are the typesof evolutions in brands that we are seeing a lot of right now. Whatis likely happening is that we are overstored and over-malled. Theweak are dying and it is a little bit of Darwinism in retail. Theacute North Star-focused, evolved brands are thriving. If you areon that train, it is an incredible ride.”

Retailers have more access to a larger demographic base today,because of the internet and international travel; however, this isa bonus customer rather than a core customer for brands. “A lot ofbrands are conflicted by their demographic base because the worldis more transient now,” says Sheldon. “Anyone that walks into yourstore could be from Croatia, Paris, Shanghai, Brisbane or New Yorkat any given moment. Brands have really had to pay close attentionto who their demographic is. I believe that the best brands arelaser focused on the service and product that they are selling to avery specific demographic. The bonus of the global transientpopulation has allowed for an additive of a complimentary customerbase for a lot of these brands.”