The Global Market Development Center’s (GMDC) latest research report identified a top opportunity for transformation in the retail industry: supporting consumers’ health and wellness.
According to GMDC, 95% of all products sold on Amazon consist of non-food merchandise, which generally holds the highest profit margin among all store products. GMDC predicted some merchandise categories would completely leave physical retail by 2025. However, in its latest research, GMDC found one key area where consumers are continuing to return to physical retailers: health and wellness products.
According to the research, shoppers are seeking authentic in-store experiences with personalized expert advice focused on products supporting healthy lifestyles, to assist with meeting their personal wellness goals. GMDC suggested that stores align their services with this opportunity to play a key role as healthy living experts.
GMDC reported that the health, beauty and personal care department has grown the second fastest of any retail department during the last year and the third fastest over the last four years. By catering to the consumer experience and health mindset, stores hold the opportunity to create high-engagement experiences with shoppers when they leverage these new occasions, ultimately bringing traffic back into physical stores, GMDC said.
“Consumers continue to gravitate toward online shopping for convenience reasons,” said Mark Mechelse, GMDC’s vp/insights and communications. “However, trading partners’ ability to convert, educate and have meaningful self-care conversations can only happen in the physical store. Selecting the right supplier who has a relentless focus on those strategies is essential to win.”