Global trends are changing the retailing landscape on a large scale.  While several trends continue — the aging of the U.S. population, the apparent evolution of the typical family structure, the speed of daily life, the increase of technology — these trends have been building for decades. All of these are important. However, it is the here-and-now global trends, two of which are listed below, that shape short-term retail buying directions.

Comfortable Adventures
In these uncertain times, when the world is not at peace and the media tend to sensationalize every event, more and more people are retreating to the peace of their homes. New retail strategies like Williams Sonoma Home, Pottery Barn Bed and Bath, and others are providing the furniture and furnishings to help customers do just that. Twenty years ago people simply enjoyed their homes; now they focus and commit to their homes on every level, in every room.

One aspect of this phenomenon is changing, however: With 9/11 becoming more of a memory, people are feeling more comfortable spending time away from their homes: They are going out more, traveling more, visiting friends and family more. They’re joining political organizations and finding other people who think like them. The polarizing presidential election of 2004 is one factor; another is the rise of activism and concern over global matters.

All of this manifests itself in retail by the increased interest in all things global. Retailers are trying to find new ways to bring objects from other parts of the world to the customer’s home. Whether authentic or not, customers desire this concept. Consider the rise of Cost Plus World Market and the recent Global Bazaar at Target. Additionally, when customers are at home, they want an organized world, controlled surroundings and items easily available. Note the importance of home-organizing TV shows and magazines and such decorative storage retail strategies as the Container Store and Organized Living. They want luxury, to indulge in a few fine things, but will only visit trusted retailers and direct-mail merchants. Nearly every luxury retailer has performed well in this current cycle.

We’re at a mid point — somewhere between the comfort of Home and the pull to be with others and explore.

I Want A Deal!
Everyone wants a deal! While this seems, on the surface, to be simply a matter of “the customer is getting smarter,” there is more to it than that and it does indeed relate to the above trend.  Clearly, there is some big business here. Stores like Costco, Big Lots, Tuesday Morning, TJMaxx, the Dollar stores and others have led the charge for value, and customers are responding.  Yet a chasm has been created in the middle. Customers either want luxury (see above) or they want extreme values. All of the middle players, traditional department stores for instance, are struggling.

Why is there such a drive for a deal? Not because the customer is more frugal. Customers have always wanted bargains. But during this trend cycle, the customer places a great deal of value on a few special things and little value on run-of-the-mill merchandise purchased on a frequent basis. It’s the difference between buying a child’s overalls that will wear out quickly and selecting a child’s coat that will be handed down to a sibling. A customer may invest in a new European contemporary bed from West Elm and yet buy sheets — along with decorative pillows that will be tossed out in a couple seasons — on sale at Bed, Bath, and Beyond. A customer may order a solid cherry dining room table from Marshall Field’s Department Store but pick up a 36” round breakfast table, ready to assemble, from Costco.

As the globe grows seemingly smaller, with more and more choices placed in front of customers, retailers and manufacturers must make individual, decisive and strategic decisions not to just sell or make a nice product but to really serve a customer’s wants and needs. Products that mimic others —“me too” products—will absolutely fail in the current market.