Renting ... somewhat thinking you own an asset.

What retail will turn into, is open for discussion. The industry is at a poignant stage right now, on the cusp of radical transformation. Behind the pearly white smiles and necessity to fold and refold garments in clothing stores, business models are under increasing pressure and collapsing at a conspicuous rapid rate.

Half way through the year, 2017 bankruptcies are inflating. With 2016 in our dust, Sears, RadioShack, Macy’s, Payless some big US players and Australia with an arsenal also, Dick Smith, Nasty Gal, Masters, Dick Smith, Payless Shoes, Topshop and Pumpkin Patch. Other companies … Michael Kors failing hoping buying Jimmy Choo will propel it, Burberry depreciating in appreciation and sales, Lululemon’s stock sinking, retailers abandoning Fifth Avenue. What’s to blame (scratching head) … Several trends including the rise of ecommerce, abundance of malls, surprising rise of services with a restaurant renaissance and general concern with people aren’t spending at bricks and mortar.

The ever present demise is always the answers of the behemoth Amazon and online purchasing. Before buying items consumers would make several trips to buy that larger item. Browse options, narrow to what you need and finally purchasing that prized possession. With each trip lots of other smaller purchases would take place. This is all replace with prep online, less meandering through shopping malls and less incidental purchases at nearby stores.

Spending is shifting from materialism to more traveling and dining out investment. This is where retailers need to shift their mindset to a shifting consumer … renting is a viable way forward. Products such as clothing, sports gear, diy essentials for around the home, furniture … there is an ever growing need for renting as a replacement over the philosophy to own products. Shopping habits will continue to be shaped by the emerging stagnation in the economy. Simultaneously with the acceptance of the sharing economy will have a wider impact on purchasing decisions.

Second tier retailers are really struggling in this market. A renting business model, needs to be employed to help rectify the future needs and spending of your consumer. Blending this with establishing your brand to stand for something will really help. Avoiding a commoditized market where everyone is selling the same jacket, same new tech, same new activewear product, once this happens your business has no reason to exist.

Demonstrating flexibility in your business approach, is likely to prove successful in attracting the next generation of consumers. A shifting position of future spending with less focus on ownership and greater uptake of renting.