‘Generous brands’ in the current retail climate have pioneered the information that consumers want to know about the businesses they’re buying from. Innocent Drinks, for example, have shown to be a ‘generous brand’ associated with good health, charitable causes, and tongue-in-cheek marketing campaigns that resonate with their consumers.

Christian Davies, Executive Creative Director at FITCH Design explains that it’s not just the ‘façade’ that consumers are interested in, but the actual supply chain decisions too.

Buying can be a force for good

“We believe shoppers will absolutely want to know what retailers care about. On a macro level, this trend will influence the products retail brands choose to provide. It will push us to continue to explore how the act of buying can be a force for good.”

The results for being transparent and open with consumers, will be staggering. To support this a survey by the Business Citizenship Report 2014 reported that:

• 78% of respondents would recommend a company seen as such
• 74% of respondents would be “proud” to be associated with it
• 71% say they would be loyal to such a business

Environmental factors

While savvy consumers will seek information to ensure their ‘generous brand’ is who they perceive them to be, consumers may still not be aware of the deeper procurement complexities. A lack of natural resources and high demand for raw materials in new markets, for example, will not be understood as such, but that will not stop them wanting sustainability at a fair price.

Not forgetting modern slavery

The International Labour Organization estimates that 30 million people are enslaved today, and the profit generated by this labour is $150 billion annually. For UK firms, modern slavery is now a legislative measure, and not just an ethical ‘nice-to-do’.

Our Modern Slavery Report showed a shocking 71% of procurement professionals felt they were ill-prepared for new legislations and struggle to monitor their supply chain. Growing pressures to prove ethical standards to customers means you need to be ahead of the game to offer transparency in your business.

Triple the transparency

Retailers need to be more transparent, not only to meet legislation and ensure their supply chain in retail is compliant, but also to appease the demands of consumers in 2020 and beyond. Ethical product purchases are at an all-time high, and it falls to retail facility managers and property managers to ensure their brands are ready for the change.

For more insights into the consumer trends that will affect the industry in 2020 and beyond, download our free report, Retail 2020 report today.

As online retail spend continues to increase, high street retailers are under pressure to create physical spaces that are there to entertain, as well as sell. Traditional retail footprints are being challenged by pop-up stores that, according to Fung Global Retail & Technology, give brands “complete creative control of the brand experience and how their messaging is communicated to consumers”.

Rise of ‘retailtainment’

Consumers will be eager to be inspired to purchase products in store, even if they decide to buy online instead. Retailers will be actively seeking competent suppliers that can create eye-catching displays and entertainment at peak shopping hours.

‘Phygital’ retail spaces

Physical retail spaces are set to include more digital capabilities, creating ‘phygital spaces’. These spaces are expected to include more touch-screen interfaces for greater product customisation, and could be extended as far as restaurant customers ordering their food on devices.

One example of a company that has done just that is J D Wetherspoon with the introduction of their Order & Pay app. Now available at each of their pubs across the UK, the app allows anyone with either an iPhone or Android phone to order food and drink to their table, without leaving their seat.

This connectivity and the devices required would need strong technology suppliers that can deliver a simple and secure solution.

What’s the impact on me?

With more emphasis on entertaining and interactive retail spaces, supply chain professionals need to be confident that their contractors can offer the solutions they need whilst remaining fully up to date with the latest rules and regulations that are ever evolving. This is crucial to offer businesses the assurance that every person that steps foot on their premises is fully competent and compliant.

Professionals will also need to ensure that all suppliers are aware and understand the policies and rules of working with their brand. This management of supplier knowledge and capability is something that Altius can help with as part of their Managed Service.

More insights

For more insight into future retail trends, and how they’re set to affect every retail FM, download your copy of Retail 2020: A future insight of trends that will affect facility and property management.

The retail supply chain is evolving rapidly. The internet has arguably been the biggest change in the industry with over £133 billion now spent online – a 16% increase on the previous year.

This remarkable level of spend has meant the supply chain of traditional retail companies has had to fundamentally change in order to meet the demands and behaviours of consumers.

In response, the industry embraced an ‘omnichannel’ strategy – an approach to align and integrate all sales channels within the same transactional and logistical infrastructure. But what else should retail FMs prepare for in their retail supply chain?

We’ve gathered the opinions of three experts on how the future of retail supply chain is set to change by 2020.

Sarwant Singh

Sarwant Singh is Senior Partner at market research company Frost & Sullivan and specialises in mega trends and the future of mobility. In his Forbes article in 2016, Sarwant gave his opinion on how technology, in particular, will change the supply chain industry.

From unmanned mobile robots in warehouses to drones for online fulfilment, the current supply chain is undergoing a major transformation. With the possibilities in artificial intelligence, the future supply chain holds the promise of being completely autonomous and self-orchestrated.

The supply chain of tomorrow will be leaner, faster and most importantly, self-orchestrated. This unprecedented pace of change will be driven by a few radical technologies that will be cautiously adopted by industry participants over the next 15 years. Here is a view of the top five Frost & Sullivan has identified from its comprehensive analysis on the Future of Logistics:

• Autonomous fleets will bring greater efficiency
• Data will replace fuel as the biggest influencer
• New breed of technology players will be less asset-centric
• The emergence of e-brokerage platforms
• Smart commerce with Blockchain

Christian Davies

Executive Creative Director at FITCH Design, Christian Davies, introduced an extensive report back in 2015 that outlined his opinion on the way retail will change as we approach the year 2020. While the report focussed on the retail trends that are being pushed by consumers, it sheds light on how these changes will affect retail supply chains as a result.

Retail will change more in the next five years than the last 50. This change is not just driven by economic, product or industry trends. Rather, tomorrow’s store is being shaped by new behaviours, needs and demands of shoppers.

By 2020, generation X will be enjoying the fruits of their peak-earnings decade of their careers. Millennials will no longer be the kids in your store. In fact, they are more likely to be shopping for their kids. Retail today is “under-delivering” against millennials’ expectations and success at retail in 2020 will only be achieved by embracing this somewhat challenging idea. We see six trends for retail’s future:

• Retail’s role in society will change significantly by 2020
• Physical stores in 2020 will take many forms
• The ways in which we speak to shoppers will shift dramatically
• Seamless will be an absolute must
• By 2020 the entire concept of convenience and value will shift
• Experience will remain king

Kantar Retail and PwC

Following their joint report two years ago, Retailing 2015, researchers at Kantar Retail and PwC unveiled their new report in 2016 Winning in a polarized world. In the report, they looked into the infrastructure and logistical changes that retail supply chains need to prepare for.

Based upon updated research and the combined views of our retail industry professionals, we believe successful retailers of 2020 will be those most likely to properly position themselves to master the highly dynamic marketplace in which they operate, a marketplace that will likely be increasingly polarized. The polarization of 2020 is expected to manifest itself in a variety of ways:

• Channel fragmentation. The retail landscape is expected to experience a significant increase in non-store retail. Successful brick-and-mortar formats will look markedly different from one another.

• Growth of recession-trained and fixed-income shoppers. These groups, regardless of wealth, are expected to pursue increasingly polarized shopping decision processes. For categories these shoppers care deeply about, we expect a rise in premium products that are tailored to their specific needs.

• Smaller footprints. The retail environment of the future will see retailers increasingly opening smaller stores to generate new growth as already seen in several urban markets. The online world will capture an increasing share of planned shopping trips, leaving brick and mortar retailers to capitalize on immediate, or impulse, needs.

More retail supply chain trends

A report, created by the UK’s leading retail supply chain compliance specialist, Altius, is now available to download. The report, Retail 2020: A future insight of trends that will affect facility and property management, features other key retail trends that are set to affect supply chain professionals across the UK and beyond.

To read more from key retail researchers on the state of the industry in 2020, download our free report today.

Confidence in supply chain competencies in the future is set to drop to an all-time low, according to Deloitte’s latest report, Supply Chain Talent of the Future.

While 87% of supply chain leaders are confident that their organisation has the competencies required to meet demands of the job, this figure dropped to 77% when leaders were asked about their confidence in five years’ time.

Combined with all survey respondents, confidence levels in supply chain talent in five years’ time dropped even further to just 44%. Deloitte’s report was quick to point out the role that technology is set to play in the industry, hence the reason for the decline in confidence.

“The coming years will likely be one of those eras of dramatic transformation thanks to a combination of accelerating technology development and widespread experimentation with new operating models.”

The retail industry faces more change than most industries, but what can modern retail supply chain professionals do to get ahead and increase confidence amongst their leaders and peers?

Amidst the technological boom, here we look at just five skills required by supply chain professionals, as identified by Deloitte’s report.

1 – Strategic thinking and problem solving

74% of respondents believe strategic thinking and problem-solving will become one of the key skills required in five years’ time. Supply chain models will be under experimentation and professionals will need to study the ‘bigger picture’ in order to meet the wider demands of the company.

2 – Ability to communicate and collaborate

While 68% of respondents said the ‘ability to collaborate across functions’ will be one of a number on skills required by supply chain professionals, 65% said the ability to persuade and communicate effectively is required too. Whether they are speaking to teams internally or suppliers on a strategic level, communication is a paramount tool to keep the company ticking over.

3 – Leading and developing others

It is no real surprise to see that leading and developing others is still an important skill required. 66% believe this will be an important skill to have in the future, which reflects a growth in its importance compared to only 41% in the current climate. Any failures to develop the next generation, of course, effects the future supply chain excellence – this is much the same position that the industry faces now.

4 – Manage global teams

Respondents believed there would be a 23% increase in demand for supply chain professionals to manage global teams. This also extends to virtual teams who may be working from home, but still have a critical role to play in the supply chain function.

As a good starting point, current ‘supply chain leaders’ have already revealed in the report that they facilitate virtual workplace practices (37%) – making the transition to working with a global and remote team, a lot easier to do.

5 – Negotiate with value chain partners

While the ability to negotiate and collaborate with value chain partners now is seen as the most important competency by respondents (51%), this will not be the most important in five years’ time. While technology will provide professionals with the data required to drive better value, this leaves them in a position to be more strategic, as well as focus on generating the talent.

Are you prepared for other changes?

The supply chain talent pool and skills required aren’t the only changes that are set to occur in the industry. The retail industry is set to see dramatic change as consumers push for greater customisation, brand transparency and entertainment.

To read more about these trends, download our free guide, Retail 2020: A future insight of trends that will affect facility and property management.

Altius, the UK’s leading retail supply chain compliance specialist, have unveiled their latest report, Retail 2020: A future insight of trends that will affect facility and property management.

Global retail consultancy FITCH has perfectly described the retail industry, as we look towards 2020 and beyond. “Retail will change more in the next five years than the last 50. This change is not just driven by economic, product or industry trends. Rather, tomorrow’s store is being shaped by new behaviours, needs and demands of shoppers.”

Forecasted retail trends

In this guide, we have compiled forecasted retail trends from global resources – and we look at how these trends are set to impact the procurement and supply chain industries, and the extra demands they will ultimately have on facility and property management in the future.

To get ahead, and stay ahead of the competition, we recommend all retail FMs and members of your procurement and supply chain team reads this guide.

Set for fundamental changes

Speaking on the launch of the Retail 2020 report, Chief Operating Officer Len Simmons said, “It is very clear that the retail industry is set for fundamental changes over the next three years, and facility and property managers need to be in a position to respond to these ever-changing demands.”

“Our existing relationships with some of the biggest retail brands means we’re in a great position to advise other retail FMs on how trends in 2020 are set to impact on finding new and qualified suppliers and ensure supply chain compliance.”