New Millennium to Present Big Challenges to Retailers

Furniture World Magazine

The New Millennium will bring new challenges to the nation's retailers, but before the year 2000 dawns, they can expect a continuing strong year for the rest of 1999. That is the forecast of Gary Wright, president and founder of G.A. Wright, Inc., retail consulting and direct marketing business based in Denver. A new G.A. Wright report, "Retail Trends 1999--The Turn of the Century... and Beyond", also looks at such retail issues as Internet shopping, industry consolidation, shopping center problems and opportunities, and analyzes the retail industry by sector, for a glimpse at potential niches for smaller retailers at the turn of the century. But, even as the new year begins, Wright believes the economy is due for a major market contraction, and that the hot pace of consumer spending will cool down for a while. Yet, he suggests, the demographic trends in the United States will produce another growth period, starting around 2003, when Generation Y begins household formations. This generation, he points out, is almost as big as the baby boom generation, which has made such spectacular contributions to retail prosperity. A development to watch is whether peak-year spending by Generation Y will contribute sufficiently to the economy before the baby boom generation begins to decrease its spending for general merchandise. In another portion of the new report, Wright examines the retail industry by sector, commenting on such growth areas as family apparel, home furnishings, women's apparel, hardware/home improvement, and drug stores. He also discusses such currently lagging areas as bridal apparel, toys, and men's apparel. He cites, too, specific niches within those retail sectors that are not necessarily growing. One example of a niche opportunity is golf, within the struggling sporting goods sector. Other retail sectors that Wright analyzes include jewelry, music, and shoe stores. Wright also looks at the turn of the century, and provides some advice about how retailers can optimize the Big Holiday. In a section on the Internet, Wright answers the question, "Do you need to have a web site" with an unqualified "yes", providing reasons why, and tips on how to establish one. Wright also examines the dynamics of a number of shopping center formats, and concludes that factory outlet centers will continue to decline in popularity, that regional malls are due for some big changes, and that power centers, neighborhood strip centers and downtown retail locations are on a growth track. The new 28-page Retail Trends report is being mailed to G.A. Wright's retail clients and others who request it. It is also being offered at G.A. Wright's Website, www.gawright.com. Gary Wright, the president of G.A. Wright, Inc., has been a retail management consultant since establishing the company in 1981. The company, with headquarters at 4105 Holly Street, Denver CO 80216, specializes in producing marketing programs tailored to the specific needs of individual retail companies. Phone: 303-333-4453.