A recent Deloitte study indicates making the right investments–such as moving supply chains closer to consumers can help distinguish winners from losers in retail. The study looked at some of the key issues for retailers in 2019, noting how this year could be the tipping point where decisions on investments that help empower the consumer could pay off big time down the road.

For 2019, the study forecasts an empowered consumer who has an increased desire for personalised services; a continuation of newer, smaller and tech-enabled competitors stealing market share; an economic climate with high consumer confidence, but a tightening monetary policy that is typically a precursor to a recession; a value chain across retail becoming increasingly compressed; and the blurring of what were once distinct industries–such as retail and technology–that now are more interconnected than ever before.

Consumers in 2019 are likely to face both headwinds and tailwinds. Tax cuts, along with nominal wage growth, have provided a boost to disposable income. But recent Fed rate increases have meant higher borrowing costs, and potential tariff increases on a wider range of goods from China could add to price pressures.