Positive outlook for retail fixtures industry as physical stores grow presence

Just ask Amazon and Google, both of whom have ramped up their retail presence with physical stores. The fact is, brick and mortar stores are here to stay.

Stay, but not be stagnant. In order to compete with their online counterparts, physical stores are evolving in the services and technology offered, as well as in the style, accessibility and feel/texture of the visual merchandising displays and fixtures used.

Because despite the popularity of online buying, shoppers still like to touch, feel and try on things before purchasing. According to PwC’s 2017 Total Retail survey, in-store shopping remains the most popular buying channel with weekly and daily shoppers, followed by websites and mobile apps.

A survey in the October issue of design:retail also reinforces the popularity – and growth – of physical stores. According to the survey, almost 25% of respondents planned to open the same number or more stores as they did in 2017, while 70% planned more or the same number of store renovations next year. In addition, more than 80% of those surveyed said they planned to spend the same or more for capital improvements in 2018.

Click to enlarge the infographic, plus find more market data in December's FDMC Wood Industry Almanac.

Quick Stats
The manufacture of showcases and other products for the retail industry (NAICS 337215) is expected to hit $7.575 billion in 2017 and grow to $7.591 billion in 2018, $7.959 billion in 2019 and reach $7.806 billion in 2020, according to information from Statista and the U.S. Census Bureau.

Consumers spending will average of $967.13 this year, according to the annual Holiday Spending Survey conducted by Prosper Insights & Analytics for the National Retail Federation. That’s up 3.4%’.

According to a PwC/SAP survey, 37% of retailers say they plan to increase their investment in brick and mortar locations by expanding or creating new in-store experiences. In that same survey of 312 retailers, 31% said they’ll invest in social media to drive awareness of their brand.

More than half the companies surveyed by design:retail said design store planning and visual components were “much more important” today than five years ago. About a fifth of the survey said they were “somewhat more important.”

More than 78% of consumers shopped at three or less stores before making their most recent furniture purchases, according to a survey on furniture buying by Impact Consulting.

Market data sources: Shop! Association, design:retail, National Retail Federation, Prosper Insights & Analytics, Visual Merchandising + Store Design, PwC, Statista, U.S. Census Bureau, Impact Consulting

Category: Store fixtures & interiors: display cabinets & cashwraps, POP & full store interiors, kiosks, endcaps, slatwall & systems. 

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About the author
Karen Koenig | Editor

Karen M. Koenig has more than 30 years of experience in the woodworking industry, including visits to wood products manufacturing facilities throughout North America, Europe and Asia. As editor of special publications under the Woodworking Network brand, including the Red Book Best Practices resource guide and website, Karen’s responsibilities include writing, editing and coordinating of editorial content. She is also a contributor to FDMC and other Woodworking Network online and print media owned by CCI Media. She can be reached at [email protected]