New York City -- The retail sector continues to edge tentatively toward recovery, buoyed by a strong start to the holiday shopping season, but several obstacles stand in the way of sustained progress in 2012, according to Jones Lang LaSalle’s North America Year-end Retail Outlook.
“Everyone, including consumers, is in a continued wait-and-see mode, delaying major buying and investment decisions until they see how several dynamics play out, including the elections next year," said Greg Maloney, CEO and president, Jones Lang LaSalle Retail. "Until we have some market certainty in the U.S. and overseas plus sustained high levels of consumer confidence driven by higher paychecks, a stronger stock market and an improved housing market, a robust recovery will elude the retail sector."
One of the major trends impacting retail identified in the report is the growing prevalence of "web-influenced sales" whereby are consumers researching products online, reading reviews and searching for the best deals locally. The attractiveness of this practice lies in consumers' desire for immediate gratification as well as the ability to save on shipping costs by buying locally in-store.
It’s estimated that web-influenced sales will generate almost $1.13 trillion in U.S. sales this year and, by 2015, will represent approximately 44% of total retail sales, or $1.55 trillion. Moreover, even though e-commerce sales are growing at a fast clip (10% annually), cross-channel commerce is growing even more rapidly, and is estimated to grow to five times the e-commerce market by 2015.
"To survive in the long-term, local retailers will have to ensure their products show up online, that the site reflects accurate availability, and that the online and in-store experiences are as seamless as possible," said Lew Kornberg, managing director, corporate retail solutions. "The rewards are direct -- not only do shoppers come in for the researched product, they also stick around to buy other items once in-store."
Forrester Research reported that 45% of shoppers interviewed said they bought extra items once in a store, spending, on average, $154 on additional purchases.
Other major trends include: