The Top 10 Trends Expected to Drive Retail in 2016

new level, providing consumers with a personalized, interactive retail context leading to more sales across all channels.

5. Video streaming. A trend that has taken off particularly with millennials, video streaming in a sales context can allow retailers to answer consumer questions and show the product in action, helping to increase sales. In fact, 85 percent of consumers have indicated they are more likely to purchase after seeing a product video, Synchrony said. Retailers should look at where there might be opportunities in their own sales process to use online streaming video.

6. Internet of Things. The Internet of Things is the network of physical objects--such as devices, buildings, etc.--that are embedded with electronics, software, sensors and network connectivity, enabling these objects to collect and exchange data. Rather than just collecting data at the point of sale, retailers are able to gather it in more places, providing further insight into consumer behavior, trends, buying patterns and more. This also can lead to cost-saving through productivity improvements.

7. Mobile payment and alternative payments. Though the percentage of total retail sales paid through mobile payments remains small (less than 2 percent in 2015), it’s expected to more than triple in 2016, especially as more smartphones offer mobile wallet apps such as Apple Pay and Samsung Pay, and as more wearable are equipped with near-field communication. Retailers should keep an eye on the payment market and update POS systems and e-commerce platforms accordingly.

8. Social network buy buttons. Most of the big social networks have added the capacity to shop directly from their sites now. Even though adoption has been slow with millennials, the growing use of mobile will continue to advance the trend. It will be important for retailers to make sure their marketing message is integrated with top social channels so that products are in front of consumers.

9. Increased spending on pets. Synchrony said that consumer spending on pets has risen 25 percent over the past five years and likely will continue to rise for a number of reasons--urban couples are opting to get animals as they wait longer to have children, and more pet owners are thinking of their pets as family. Retailers who find a way to appeal to animal-loving consumers will benefit.

10. Personalization. Consumers today are looking for personalized experiences and offers, with more than three out of four shoppers indicating they’d be more loyal to a store that provided their preferred loyalty benefits. Thanks to data and the Internet of Things, retailers now can give them that. Department stores are using beacon technology to push ads to mobile devices while shoppers are still in store, online retailers are enabling product recommendation based on browsing history and some retailers are tailing loyalty programs to boost customer loyalty and repeat spending.