“Complete surprise”: sales of electronics collapsed in Russia. The decline in retail trade in Russia continues Fall in sales in retail trade September

11.12.2017

Export-import of the most important goods for January-October 2017

According to customs statistics in January-October 2017 Russia's foreign trade turnover amounted to 471.1 billion US dollars and increased by 25.0% compared to January-October 2016.

Trade balance there was a positive amount of 102.9 billion US dollars, which is 22.3 billion US dollars more than in January-October 2016.

Export to Russia in January-October 2017 amounted to 287.0 billion US dollars and increased by 25.5% compared to January-October 2016.

The basis of Russian exports in January-October 2017 to distant countries abroad traditionally were fuel and energy products, the share of which in commodity structure exports to these countries amounted to 64.8% (in January-October 2016 - 62.7%). Compared to January-October 2016, the value volume of fuel and energy goods increased by 30.1%, and the physical volume - by 3.5%. Among the goods of the fuel and energy complex, the physical volumes of exports of coal increased by 11.2%, natural gas - by 7.3%, diesel fuel - by 2.8%, crude oil - by 1.3%. At the same time, the physical volumes of automobile gasoline exports decreased by 27.0%.

In the total value of exports to non-CIS countries, the share of metals and products made from them in January-October 2017 was 10.0% (in January-October 2016 - 9.9%). The value volume of exports of these goods increased by 26.6% compared to January-October 2016, while the physical volume decreased by 3.6%. The physical volumes of exports of cast iron decreased by 15.7%, aluminum - by 8.3%, ferroalloys - by 5.8%, semi-finished iron and non-alloy steel - by 4.9%. At the same time, the physical volumes of exports of copper and copper alloys by 10.4%.

The share of exports of machinery and equipment in January-October 2017 was 5.6% (in January-October 2016 - 6.3%). In January-October 2017, the value of exports of this product group by 12.8%. At the same time, the value of supplies of electrical equipment decreased by 21.0%, while supplies of optical and medical instruments and apparatus increased by 28.6%, and mechanical equipment by 22.4%. The physical volumes of deliveries of passenger cars increased by 66.0%, and trucks– decreased by 42.0%.

The share of exports of chemical industry products in January-October 2017 was 5.5% (in January-October 2016 - 6.2%). Compared to January-October last year, the value of exports of these products increased by 10.9%, and the physical volume - by 2.9%. The physical volumes of supplies of plastics and products made from them increased by 24.9%, inorganic chemical products – by 16.8%, rubber and rubber – by 3.9%. At the same time, supplies of organic chemicals decreased by 7.3%, nitrogen fertilizers - by 5.3%.

Export share food products and raw materials for their production in the commodity structure of exports in January-October 2017 amounted to 4.9% (in January-October 2016 - 5.2%). Compared to January-October 2016, the value and physical volumes of supplies of these goods increased by 20.5% and 19.1%, respectively.

The share of exports of timber and pulp and paper products in January-October 2017 was 3.2% (in January-October 2016 - 3.4%). The physical volume of exports of this product group increased by 6.4%. The volume of supplies of lumber increased by 13.4%, while the volume of exports of unprocessed timber decreased by 4.5%, cellulose - by 1.0%, and plywood - by 0.4%.

In the commodity structure of exports to CIS countries in January-October 2017, the share of fuel and energy goods amounted to 33.0% (in January-October 2016 – 32.8%). The value of exports of these goods increased by 26.2%, and physical volumes - by 1.5%. The physical volumes of supplies of coke increased by 71.7%, petroleum products - by 37.2%, natural gas - by 2.2%. At the same time, the physical volumes of electricity exports decreased by 16.5%, crude oil – by 8.9%.

The share of machinery and equipment in January-October 2017 was 16.4% (in January-October 2016 – 15.7%). The value of exports of these goods increased by 31.6%. In particular, the value volumes of supplies of ground transport, except for railways, increased by 55.2%, and mechanical equipment - by 24.1%. The physical volume of exports of trucks increased by 33.2%, and passenger cars - by 10.4%.

The share of chemical industry products in the commodity structure of exports to the CIS countries in January-October 2017 was 15.3% (in January-October 2016 - 16.0%). Compared to January-October 2016, the value and physical volumes of supplies of these goods increased by 20.5% and 8.0%, respectively. The export volumes of fertilizers increased by 43.1%, organic chemical products - by 13.9%, plastics and products made from them - by 15.6%. At the same time, the physical volumes of exports of inorganic chemical products decreased by 20.5%, pharmaceutical products - by 5.3%.

The share of metals and metal products in exports to the CIS countries in January-October 2017 amounted to 12.5% ​​(in January-October 2016 - 11.9%). The value of exports of this product group increased by 31.2% compared to January-October 2016, and the physical volume - by 11.9%. The physical volumes of exports of ferrous metals and products made from them increased by 12.0%, including ferroalloys - by 67.4%, semi-finished products from iron or unalloyed steel - by 25.3%, flat rolled products from iron and unalloyed steel - by 20 .0%.

The share of food products and raw materials for their production in the commodity structure of exports in January-October 2017 was 10.1% (in January-October 2016 - 11.0%). Compared to January-October 2016, the value of supplies of these goods increased by 15.3%, and physical supplies - by 8.7%. The physical volumes of exports of fresh and frozen pork increased by 37.7%, vegetable oil - by 11.0%, fresh and frozen fish - by 9.2%. At the same time, supplies of milk and cream decreased by 15.3%, cheeses and cottage cheese - by 5.6%.

Export share timber and pulp and paper products in January-October 2017 amounted to 4.4% (in January-October 2016 – 4.6%). The value and physical volumes of exports of this product group increased compared to January-October 2016 by 21.8% and 7.6%, respectively. The physical volumes of pulp exports increased by 13.5%, lumber – by 2.9%, and plywood – by 1.8%.

Import from Russia in January-October 2017 amounted to 184.1 billion US dollars and increased by 24.3% compared to January-October 2016.

In the commodity structure of imports from foreign countries the share of machinery and equipment in January-October 2017 accounted for 51.2% (in January-October 2016 – 49.4%). The value of imports of these products increased by 27.3% compared to January-October 2016. The value of supplies of ground transport, except railway, increased by 36.5%, mechanical equipment - by 28.4%, electrical equipment– by 24.4%, instruments and optical apparatus – by 22.4%. The physical volume of imports of passenger cars decreased by 6.7%, and imports of trucks increased by 50.9%.

The share of chemical industry products in the commodity structure of imports in January-October 2017 was 18.5% (in January-October 2016 – 19.2%). The value volume of imports of chemical industry products increased by 19.3% compared to January-October 2016, and the physical volume - by 3.9%. The volumes of physical supplies of rubber, rubber and products made from them increased by 15.3%, organic compounds - by 11.3%, paints and varnishes - by 6.0%, pharmaceutical products - by 5.7%, plastics and products made from them. – by 4.2%.

The share of imports of food products and raw materials for their production in January-October 2017 amounted to 11.4% (in January-October 2016 - 12.3%). The value and physical volumes of imports increased by 15.5% and 8.3%, respectively. Physical volumes of supplies of butter increased by 72.7%, fresh and frozen fish - by 14.5%, cheeses and cottage cheese - by 9.4%, fresh and frozen meat - by 9.8%, citrus fruits - by 7.6 %.

The share of textiles and footwear in January-October 2017 was 6.1% (in January-October 2016 – 6.0%). The value and physical volumes of imports of these goods increased compared to the same period last year by 25.6% and 16.8%, respectively.

The share of metals and products made from them in the commodity structure of imports in January-October 2017 was 5.8% (in January-October 2016 – 5.4%). The value volume of this product group increased by 31.7% compared to January-October 2016, and the physical volume - by 42.4%. The physical volumes of pipe imports increased by 82.4%, rolled flat iron and non-alloy steel – by 12.4%.

In the commodity structure of imports from CIS countries in January-October 2017, the share of food products and raw materials for their production amounted to 22.6% (in January-October 2016 - 23.5%). The physical volumes of food supplies increased by 1.5% compared to January-October 2016, including milk and cream by 43.4%, fresh and frozen fish by 28.1%, meat poultry– by 10.3%. At the same time, the physical volumes of supplies of citrus fruits decreased by 22.9%, cheeses and cottage cheese - by 2.9%, and butter - by 0.7%.

The share of machinery and equipment in January-October 2017 was 21.7% (in January-October 2016 – 22.6%). The value of imports of this product group increased by 21.0% compared to January-October 2016. The value of supplies of railway equipment and its parts increased by 2.4 times, land transport means, except railway - by 47.6%, mechanical equipment - by 11.2%.

At the same time, the volume of supplies of optical instruments and apparatus decreased by 12.9%. The physical volumes of imports of passenger cars increased by 50.7%, trucks - by 25.5%.

The share of metals and products made from them in the commodity structure of imports from the CIS countries in January-October 2017 was 16.8% (in January-October 2016 - 13.8%). The value volume of this product group increased by 54.3% compared to January-October 2016, and the physical volume – by 39.5%. The physical volumes of imports of flat rolled iron and non-alloy steel increased by 41.5%, pipes – by 33.8%.

The share of chemical industry products in the commodity structure of imports in January-October 2017 was 13.5% (in January-October 2016 – 14.5%). The value volume of imports of chemical industry products increased by 17.3% compared to January-October 2016, and the physical volume - by 15.5%. Physical volumes of supplies of plastics and products made from them increased by 13.1%, inorganic chemical products - by 7.9%. Physical volumes of supplies of organic chemicals decreased by 14.4%.

The share of textiles and footwear in the commodity structure of imports in January-October 2017 was 7.2% (in January-October 2016 – 7.9%). The value and physical volumes of imports of these goods increased compared to the same period last year by 15.2% and 23.3%, respectively.

The share of imports of fuel and energy goods in January-October 2017 was 4.6% (in January-October 2016 – 3.9%). The value volume of this product group increased by 47.8% compared to January-October 2016, and the physical volume - by 8.3%.

In the country structure of Russian foreign trade The leading place is occupied by the European Union as the country's largest economic partner. The share of the European Union in January-October 2017 accounted for 42.7% of Russia's foreign trade turnover (in January-October 2016 - 43.2%), the CIS countries - 12.4% (12.3%), the EAEU countries – 8.8% (8.6%), for APEC countries – 30.5% (29.9%).

The main trading partners of Russia in January-October 2017 among non-CIS countries were: China, trade turnover with which amounted to 68.9 billion US dollars (130.8% compared to January-October 2016), Germany – 40.1 billion dollars USA (123.3%), Netherlands – 33.0 billion US dollars (126.6%), Italy – 19.3 billion US dollars (118.6%), USA – 18.7 billion. US dollars (116.9%), Turkey – 17.1 billion US dollars (137.9%), Republic of Korea – 16.5 billion US dollars (131.4%), Japan – 15.0 billion US dollars (115.2%), Poland – 12.9 billion US dollars (124.1%), France – 12.1 billion US dollars (111.8%).

Trade volumes with CIS countries in January-October 2016-2017 are given below: million US dollars

A COUNTRY

EXPORT

IMPORT

January-October 2016

January-October 2017

January-October 2016

January-October 2017

AZERBAIJAN

BELARUS*

KAZAKHSTAN

KYRGYZSTAN

TAJIKISTAN

TURKMENIA

UZBEKISTAN

* Includes additional calculations for unaccounted volumes of mutual trade Russian Federation with the Republic of Belarus.

The foreign trade turnover of Russia includes fish and seafood of the Russian Federation that are not subject to delivery for customs clearance on the territory of the Russian Federation; bunker fuel, fuel, food and materials purchased outside the territory of the Russian Federation; goods and vehicles, imported individuals; additional calculations for unaccounted volumes of mutual trade with the EAEU countries.

Russian exports include fish and seafood of the Russian Federation that are not subject to delivery for customs clearance on the territory of the Russian Federation; additional calculations for unaccounted volumes of mutual trade with the EAEU countries.

Russia's imports include bunker fuel, fuel, food and materials purchased outside the territory of the Russian Federation; goods and vehicles imported by individuals; additional calculations for unaccounted volumes of mutual trade with the EAEU countries.

The decrease in retail turnover for the period 2015 and 2016 was almost 20% - the Russian market has never seen such a drop. Against the background of collapsed effective demand and the intensification of the struggle for consumers in retail, trends have emerged that will certainly have an impact on the development of the market in the very near future.

More government checks

Changes in the Law “On Trade” and in regulations left their mark on the relationships of the players with each other and with the state. structures. In 2017, the process of adaptation to working in the new legal framework will continue, which affects both suppliers and sellers.

On instructions from the government, from January 1, 2017, the territorial bodies of the FAS conducted large-scale checks of the readiness of companies to work under the new norms of the Law “On Trade” and requested tens of thousands of pages of contracts and reports from companies relating to 2015, 2016 and the beginning of 2017. The emphasis was on large federal networks. “Companies are quite ready to work in new conditions, although not all contracts with suppliers were renegotiated for a variety of reasons, from a revision of the network strategy to the inability to quickly find the right interaction formula that satisfies both parties,” said Sergey Kuznetsov, director of the Union of Independent Networks of Russia.

Federals versus regionals: the struggle is intensifying

The territorial expansion of chains, aimed at capturing market share, has led to the fact that in large cities, stores of federal and regional chains are closely adjacent and compete for consumers. Local trading companies believe that they manage the network more effectively in their region and know the consumer better.

However federal networks Due to their volumes, they are able to sell certain categories of goods at 30-40% cheaper. Local companies have to make difficult choices - sell certain products at a loss, not sell them at all, or find replacements for them. But it is not always possible to find an adequate replacement for large federal producers.

“The thesis that competition is getting tougher has been heard constantly, but this year it’s worth changing the term, since competition has become tougher than ever, and this will have to be taken into account,” notes Ivan Fedyakov, CEO"INFOLine".

Industry leaders are trying to capture the market

Market leaders have become even larger. According to preliminary data annual rating retail chains of the INFOLine company, in 2016 the top 100 Russian retail accounts for a third of all retail turnover. At the same time, 10 players consolidated more than half of the revenue attributable to the top 100, which amounts to 4 trillion rubles.

There is a revival in general retail. The consumer is stocking up on New Year's assortment on the eve of the holidays. However, this picture is not as rosy as it might seem at first glance. Prices are rising, purchasing power is falling, and things will not get better - these are the forecasts of the participants in the key link in the trade supply chain - distributors.

Karolina Kuznetsova, regional manager trading company"Global Trading": “Even compared to 2016, sales volumes have decreased. Of course, before the New Year our clients try to purchase goods, but such large warehouse stocks, as before the crisis, they don’t do it. Moreover, many of those who previously purchased 20 tons each, today take 2-3 tons of goods, accordingly, we had to stop cooperation with such clients, which became unprofitable for us. We work very low prices and at the same time we provide a large volume, which means our priority is the customer who is able to pay for an entire container.

Before the New Year, the demand for fruits and vegetables, canned fish, and cereals, especially rice, traditionally increases. But, again, customers purchase slightly more goods than during the year - maybe by one percent.”

Evgenia Dodulina, Commercial Director trading company "Prodservice": “We specialize in the meat trade - this is a product that, in principle, is always present on the consumer’s table, no matter what year it is, and for the vast majority, holidays without it are unthinkable. But I can’t talk about the New Year’s surge, which we expected and which was always present in sales during this period.”

Natalya Merzlyakova, head of the Eleon trading company: “We have never had this before - even during the last crisis of 2008-2009. Compared to 2012-2014. Demand fell by half. If in 2012 before the holidays I could not leave work for a minute, today I have a lot of free time. And every year sales are getting weaker.”

The economy must be economical

The decline in sales has been observed along the entire length of the distribution chain - from manufacturers to retail shelves, and this trend has been going on for almost four years. Experts say: the consumer continues to be poor, sales continue to fall, and accordingly, the market is being restructured towards the economy segment.

Karolina Kuznetsova: “The product range has changed quite a lot. The demand for the economy segment is growing; during the year, retail chains mostly requested it. For example, one of our customers switched from canned saury in the mid-price segment to economy. Consequently, the manufacturer also adapts to the market. Of course, “Dobroflot” will not produce very low-cost products under its own brand, but today some new, cheap brands are being created - for example, “Neptune”, that is, manufacturers are introducing such products into a separate segment and are trying to expand the line every year.”

As the economy continues to slow, the assortment of general retail would become more affordable if delivery of products were not marked by an increase in Russian Railways tariffs.

“Our products have become more expensive due to an increase in Russian Railways tariffs - by about 3 rubles per kg,” notes Evgenia Dodulina.

At the same time, according to experts, the meat sector was affected by the refusal of Brazilian imports. From December 1, Rosselkhoznadzor temporarily restricted the import of pig and beef products from Brazil - the agency found a banned growth stimulant - ractopamine - in the goods. But distributors and retailers believe that this ban comes down to big politics. And, as already happened with the closure of Turkish and American import directions, someone’s business related to Brazilian products suffered. But a number of Russian manufacturers received winning positions.

2018 will be marked by austerity, experts believe - even more stringent, given that costs for logistics, utility needs, etc. are growing, and real incomes are falling.

Evgenia Dodulina: “Look around, and you will see that the market has already changed. Companies began to save money, and this largely affects personnel policy. Focus on more qualified personnel, and it is important that these personnel spend 8 hours of working time doing work. Weak companies closed down, while strong ones, on the contrary, began to think about how to further develop. On Far East budget chains with reduced prices appeared, such as Radius and the Novosibirsk chain Svetofor. Remember, they didn’t exist before the crisis.”

The market will no longer be the same, at least in 2018-2019. - exactly, experts warn, despite the promising news that “the Central Bank believed in the future Russian economy" And while Elvira Nibiullina declares that “the economy is stable, it can and should grow faster,” the consumer buys the cheapest champagne for the New Year’s table, since today he has a variety of choices.

“The most budget champagne today can be purchased for around 150 rubles. These are mainly Russian-made sparkling wines,” says Olga Shilova, Deputy General Director of CJSC Pacific Food Company.

In the obese years 2012-2014. there was no such assortment. Today he appeared, in accordance with the Italian proverb, which in the Russian version sounds like “Roberto loved olives, and now he loves potatoes with onion sauce.”

Marina Ostanina, General Director of the trading company "Rusimport - Primorye": “We regret to note that New Year’s budgets are being cut. Corporate events are becoming more budget-friendly, and in many companies they are simply cancelled. In addition, we cannot discount the fact that if previously it was a widespread tradition to celebrate the holiday at home, with family, today many of our citizens have changed their priorities and fly to warm countries, which means they take with them money that they could spend here. In comparison even with last year, the demand for goods in stores has decreased. new Year gifts, toys. The same applies to alcohol. Of course, some stable consumers remain, but just as there was a 20% drop in sales 2 years ago, these figures remain at approximately the same level. People have reduced the costs of consuming alcoholic beverages.”

Yulia PIVNENKO


website– Current retail trade volumes are still lower than last year. In the first quarter, retail turnover was 1.8% less than a year earlier. To somehow support sales, stores shout about discounts and promotions, and also fill shelves with products in their own packaging at minimal prices.

According to sociologists, every third Russian buyer (34%) decides to buy only the cheapest brands of goods. Just five years ago, only every fourth buyer (23%) followed such a strategy. On the other hand, experts note that stores are increasingly forced to sell goods at a discount and resort to marketing gimmicks to increase demand.

Among Russian consumers, a stable group of lovers of discounts and special offers has formed - the Romir holding calls them Cherry Pickers (those who like to grab the cherries from the cake). Just five years ago, the share of those who wanted to “profit” from promotions was a barely perceptible 3%. But already in the fall of 2015, the number of “cherry hunters” reached 16% of all consumers, and now their number is almost 20%. If before the crisis people often bought just milk, just butter and just sour cream, not particularly interested in the brand and the price, which should have been just within some average framework, now, after a sharp drop in the incomes of the majority of citizens, the main criterion for purchasing has become precisely price.

According to the Institute of Social Analysis and Forecasting, real disposable cash income of the population decreased again in February 2017, this time by 4.1% compared to the same period in 2016, and on Tuesday Rosstat reported that in March incomes decreased by 2. 5% compared to March 2016. Personal incomes have fallen for the fourth year in a row. The poverty rate last year was 13.5%, the highest high rate over the past nine years.

In such an environment, it is difficult to associate people who are trying by all means to maintain their level of consumption with swindlers who are trying to grab cheaper goods. Cherry Pickers are rather a product of a weak economy, and their appearance is provoked not only by low incomes, but also by measures taken by trading enterprises that are trying to somehow revive demand. Retail trade turnover in March decreased, according to Rosstat, by 0.4% in annual terms, in the first quarter - by 1.8% compared to the first quarter of 2016. Retail trade has been declining in Russia for the third year in a row.

Romira analysts believe that long before the crisis, there was an increase in the share of promotional products, which undermined customer loyalty to brands and retail chains. Today, the scale of promotions and all kinds of discounts and promotions have reached such a scale that in some categories it is simply impossible to purchase goods outside of promotions. A third of strong alcohol confectionery, juices, sauces are sold through promotional programs. Even more are water (37%), soda (39%), dried fruits (44%) and nuts (51%).

Over the past year, 96% of Russians, voluntarily or unwittingly, became participants in such marketing ploy stores, like buying a product from the category of “own brand” (private label), which is a priori cheaper than competitors (if a liter of milk of some kind is usually sold for 70–80 rubles, then “their” milk with a brand invented by the store can be sold for 43 rub.). Romir calls this model a pseudo-discount, but, as survey results show, 44% of Russians know that we're talking about about your own trademarks networks, and every fifth respondent (22%) perceives private labels simply as the cheapest goods in the store, which is true in principle, since private label products are on average 20% cheaper than their branded counterparts. Private labels are now present in more than 220 categories. The most common are dairy products, and non-food categories include shampoos, washing powders, toothpaste and personal care products.

The share of private labels in Russia back in 2010 was 2%, and today in the Central region this figure reaches 40%, in the Volga region the figure is lower, but also significant (17%). In other districts, chain brands still account for only a tenth of the total cash turnover of stores. By the way, in Europe the indicators also vary. For example, in Poland, every fourth product (24%) is sold under the chain’s own brand, in France - 28%, and in the UK, Spain and Switzerland this figure exceeds 40%.

“The number of promotional products we have can reach 5–10%, depending on the store,” says an analyst at the Finam group of companies. Bogdan Zvarich. – Some retail chains prefer to regularly vary discount products, based on regular customers– owners of discount cards. In this case, discounts are provided not only by reducing the price of a specific product, but also by stimulating buyers through promotions, where the purchase of two or more products leads to a discount, for example, the sale of two products for the price of one. At the same time, I would not talk about an increase in the number of goods sold at a discount. Despite the decline in the purchasing power of the population, retail chains are not ready to reduce prices through discounts, as the difficult economic situation leads to a deterioration in their performance and results.”

Other experts place a slightly larger bet.

“The percentage of discounted goods depends on the store, and it is quite difficult to calculate it, since the discount system is often flexible - the discount percentage and the duration of the promotion can change quickly. Constant change forces the buyer to be on his toes - to follow the news of the store and remain loyal to him, the managing partner of the 2K company told NG. Tamara Kasyanova.

In addition, various coupons and promotional codes are constantly in effect, which also provide various discounts. Plus loyalty cards and off-season sales, including in connection with the liquidation of a store, which, in turn, can be a purely marketing gimmick. In total, the percentage of discounted goods can formally reach 50% or more, especially if we are talking about an online store. It can also be difficult to assess the overall picture because there are “fake discounts,” that is, a product or service is offered at an inflated price and a noticeable discount is immediately made. Therefore, we can talk about a maximum of a quarter of the goods that come at a discount. Usually it is 10–15% or even less. Depending on the specific store and the buyer’s choice, if we exclude “fake discounts,” the average actual share of discounted goods in the total receipt can be 10–30%.”

The material was prepared based on the Vend report “Trends and Forecasts in retail trade 2017". As with the 2016 edition, it explores the trends and issues (including personalization, in-store experiences, and evolving payment technologies) that are having a significant impact on the retail industry.

1. Retailers that improve product quality, transparency and consistency will thrive

Because online today you can find any information, customers are no longer content to be in the dark about the products they buy.

The rise of transparent, environmentally conscious companies like Warby Parker and Everlane last years initiated a radical change in the retail industry. We expect this trend to gain momentum.

Consumers are becoming increasingly interested in where their money goes rather than just the product they buy with their money. It is no longer enough to simply sell high-quality products without any information about their background.

On the contrary, buyers are drawn to retailers who show all the internal mechanisms of their work. Everlane, for example, discloses the cost of manufacturing its products: materials, labor, duties, and markup. They also include information about the factories where goods are produced, and add photos and videos of the workers and themselves. This way, Everlane customers know exactly what went into producing the product they are about to buy and can feel good about the preparation and morals that go into their purchase.

Several factors play a role in this trend: the global transition to sustainable development, a desire by consumers to be more ethically conscious in their purchasing decisions, and a greater interest in supporting brands with a “strong sense of individuality.”

Example. Recently, a Vend client, New Zealand vintage clothing and homewares boutique Bread and Butter Letter, which sells exclusively New Zealand-made items, told us: “We've noticed that our customers are increasingly asking big questions about where products come from, what they're made of done. We have also noticed that people are increasingly refusing our paper bags and are bringing their own!”

Until July 27, IKEA Centers Russia is looking for innovative solutions in the retail sector. If you have the technology to make shopping in mall more comfortable!

2. Stores that provide unique in-store experiences will thrive.

In 2017, retailers who provide unique in-store experiences will rule the roost. After all, the only way to convince a customer to come to your store instead of shopping online is to give them an experience they can't get anywhere else.

When we hear “in-store experience” in relation to retail, most of us think big: we think of Urban Outfitters buying Pizzeria Vetri to include in its stores, or smart fitting rooms at Rebecca Minkoff.

But this is only one aspect of two trends in the shopping experience trend. What other one? Finding ways to catch up and surpass the convenience of online shopping.

Most retailers are attempting to do this by creating an omnichannel shopping experience - in other words, bringing the benefits of the online world into physical brick and mortar stores.



Take Crate + Barrel for example. A home improvement store recently tested a program called Mobile Cart. Shoppers browsed the aisles using store-provided tablets, which they could use to scan barcodes to learn more about products, add items to their wish lists, and get help from sales associates in selecting items.

In-store experiences are becoming increasingly important to customers and we expect more retailers to invest in similar initiatives.

3. All retailers will implement mobile payments

Mobile payments are the way of the (coming) future. By the end of 2017, retailers that have not yet implemented them will be making every effort to do so.

According to forecasts at the end of 2016, the number of mobile payment users worldwide will reach 447.9 million. TechCrunch estimates that 70% of all mobile users in the US in 2017 will make at least one mobile payment. Mobile payments overall are expected to reach $60 billion in 2017, and Business Insider writes that mobile payments will reach $503 billion in sales by 2020.

It's clear where the retail industry is heading when it comes to payments - at least for now.

Retailers that do not implement mobile payment solutions in the near future will lag behind [the market - approx. per.] and risk losing their sales volumes, and this could mean losing a lot of money.

We can bet that all retailers will jump on this train, implementing the most suitable mobile payment systems for themselves, such as mobile POS systems, custom payment mobile applications(like Kohl's Pay) or third-party solutions (like Apple Pay).



In 2017, the development of contactless transactions - be it a card with contactless payment or a mobile device with a digital wallet - will accelerate. We are seeing sustained double-digit growth in contactless transactions in Canada. The US will also drive this growth due to its move to EMV. Businesses that conduct transactions should think ahead and find a solution that supports contactless capabilities to update their EMV systems in the future.

Consumers like it touch, and businesses must prepare themselves to succeed in this area. With the continued adoption of Apple Pay, Android Pay and Samsung Pay in North America and around the world, contactless payments will become increasingly important. Consumers will expect opportunities in any way they desire, and businesses will have to evolve with changing customer expectations.

4. Small shops are coming; big ones go away

The evolution of consumer preferences will push even more chain retailers to focus on smaller format stores.

When it comes to store size, in 2017 less Means more. We're already seeing changes with retail giants like Target, Best Buy and IKEA investing in small format stores to meet consumers' desire for more controlled assortment.

To better understand why shoppers are leaving big box stores, we need to look at another big trend in retail: the importance of convenience and accessibility. When people can shop online and have their purchased items delivered straight to their homes within hours, they need to be promised a quick and easy shopping experience to entice them to travel to a physical store.

Shoppers no longer want to waste valuable time wandering through the endless aisles of huge hypermarkets. Instead, they want simplicity and efficiency in the form of small stores with a specialized selection.

Small stores have other advantages. They require lower costs to open and operate and occupy less space in urban environments, allowing retailers to capitalize on the potential of densely populated centers.

5. Personalization will become increasingly important to consumers.

Of course, Nike is big and financially successful, so they have the resources to push personalization to its limits, but smaller retailers can take advantage of this trend too.

Ideas? Targeting content (using tools such as purchase histories) to users based on their preferences, using location technologies such as beacons to show personalized offers on mobile devices clients. Small stores have other advantages. They require lower costs to open and maintain and occupy less space in urban environments, allowing retailers to capitalize on the potential of densely populated centers.

Consumers are beginning to expect more from retailer loyalty programs. They want more personalization and offers that don't cost money. According to a Virtual Incentives survey, 56% of consumers said receiving personalized incentives would improve brand perception.

The means to gain access to customer data that makes these personalized bonuses and offers possible is usually through loyalty programs. Consumers are increasingly willing to share personal data for fair loyalty offers or personalized incentives. According to Accenture, 54% of consumers say they are willing to share personal information and their shopping preferences with retailers in order to receive personal offers(up from 33% in 2014).

In 2017, retailers will see the benefits of this amazing new technology, making it easy to collect customer information, and understand the need to use this data to create more personalized loyalty programs and offers instead of the past generic and boring options.

6. Same day delivery will come to the forefront

Free shipping in the modern world is no longer just an option, but a requirement. Name new game? Speed.

Consumers may no longer want to go to physical stores themselves, but still want the immediate satisfaction of being able to take their purchases home immediately. The best way ensure this - delivery on the day of order.

Take iPic Theaters for example. The company's website greets visitors with the headline "Your Best Night Out Ever" - and they really mean it. iPic combines the classic moviegoing experience with luxurious seating, a cocktail program, and award-winning restaurants offering gourmet cuisine. Customers can even order food and drinks from their seats while watching a movie.

These innovative concepts provide enough incentive for people to travel to a physical location, which is why we'll see more of the same in the coming year.

9. Information is still an essential component of retail success.

More retailers will use it in every part of the process, from the supply chain to post-purchase.

Retailers that make data-driven decisions will outperform those that don't. More and more merchants are recognizing this - which is why we think companies will double down on data collection and analysis.

JustFab is one example of a company that puts its customer data to good use. To learn more about its community, the fashion retailer conducts style surveys and then makes recommendations based on individuals' preferences. JustFab also carefully tracks the products that each member of their program views, rejects, and purchases, and uses this data to suggest choices.

Using information to personalize each customer's experience is just the beginning. Data analytics also plays an important role behind the scenes, especially when it comes to inventory management and distribution. Retailers rely on data to predict demand and make critical inventory control decisions.