"A major upheaval in the fashion and fashion related businesses in the past few years and a cooling economy is likely to restrict consumer spending this year. This could be further aggravated by the growing trade war between US and China that began last summer when the Trump administration levied a 10 percent tariff on $200 billion worth of goods coming from China. Paula Rosenblum, Managing Partner for market researchers RSR Research views if the trade war continues the prices of low-end and moderately-priced products will increase significantly and the impact of this price-rise will be swift."

A major upheaval in the fashion and fashion related businesses in the past few years and a cooling economy is likely to restrict consumer spending this year. This could be further aggravated by the growing trade war between US and China that began last summer when the Trump administration levied a 10 percent tariff on $200 billion worth of goods coming from China. Paula Rosenblum, Managing Partner for market researchers RSR Research views if the trade war continues the prices of low-end and moderately-priced products will increase significantly and the impact of this price-rise will be swift.

New tools to battle retail challenges

Another problem plaguing retailers this year is the growing number of returns being made by online shoppers. An estimated 15 to 30 per cent of online orders purchased during the holiday 2018 season will be returned, according to a recent report from real-estate and investment company CBRE. Online returns could cost as much as $37 billion for the 2018 holiday season compared with $32 billion for the 2017 holiday season.

But new tools of trade might help retailers battle some challenges in the retail world. One tech item expected to become more popular this year is voice-activated retail such as Amazon Echo. This is a voice-activated retail that enables consumers to order a product anytime they want by vocalizing a request into a machine.

Personalisation and customisation will be increasingly important to consumers. Mercedes Gonzalez of retail consultants Global Purchasing Companies says strides in manufacturing will allow companies to offer more unique looks to consumers.