Less Selection Will Define Retail In 2018
Less selection and higher quality are emerging as differentiators for smaller brands entering a crowded retail market that has many consumers seeking a curated product offering that cuts through the “paradox of choice,” according to research from Canadian retail tech firm Hubba, which connects retailers with brands. Hubba’s findings are based on interviews with 595 U.S. small businesses. Hubba’s researchers, in their report, “The Curated Future: Why less selection, not more, will be the defining retail trend in 2018,” split consumers into “savers” (those who seek out the lowest prices on commodity products) and “selectionists” (those who seek “unique and higher quality products”), and conclude that this year will be a period of smaller brands working to appeal to the choosier shoppers. From 2011-2015, smaller brands already shifted some $18 billion from their larger, more established competitors. For example, small brands account for almost 50% of all retail grocery dollars spent in food and beverage alone today, according to the report. It’s not just grocery. Small brands with annual sales of less than $1 billion are outperforming their competition in 18 of the top 25 categories, Hubba said. Read more at Retail Dive.
