The retail industry is undergoing an unprecedented period of change. New, rapidly deployed technologies combined with underlying shifts in demographics and income distribution are producing shopping behaviors that are forcing retailers and wholesalers alike to significantly rethink their business models.

But the fundamentals of a successful retail proposition remain unchanged. Indeed, as we demonstrate in this second edition of The Kurt Salmon Review, even against the backdrop of this rapidly evolving landscape, there are predictable patterns that can be exploited to build highly attractive investment propositions.

For example, the shift in incomes combined with the desire for aspirational products is creating huge demand for the market segment known as masstige and is helping to drive continued growth in outlet stores.

And the polarization of income groups is making clear the importance of avoiding the “undifferentiated middle” in retail  grocery and consumer packaged goods, while an increasingly diverse population is opening up new opportunities in the ethnic foods category.

Meanwhile, as retailers continue to leverage technology by rolling out omnichannel capabilities tailored to the  various preferences of their customers, the most traditional of shopping channels—the catalog—still plays a key role.

That’s just a sampling of what we have for you  in this issue. We hope that you enjoy it as much as you did the first one, and, as always, we look forward to hearing from you.

11 November 2013