Navigating retail’s next frontier: insights from FTI Consulting in Miami
The Large Format Retail Association’s Overseas Study Tour entered its second leg in Miami this week, with the 34 delegates – from retailers, to developers, and service providers – representing Australia’s Large Format Retail sector.
The first full day in Florida opened with a high-level briefing session hosted by FTI Consulting, where Senior Managing Directors Jeff Wray and Tim Schleeter provided an update on the forces reshaping the US retail environment.
The session offered a sharp lens into how US Large Format Retail is evolving amidst macroeconomic uncertainty, intensifying digital transformation, and shifting consumer behaviour – parallels and contrasts that Australian operators are keenly observing.
One of the central themes of the briefing was the acceleration of e-commerce and the structural impact of omnichannel retail. As online sales continue to claim a growing share of the US market, physical stores are being strategically repositioned as high-value touchpoints for fulfilment, returns, and brand engagement. Walmart, in particular, was held up as a leader in transformation, leveraging its store network to compete with Amazon on convenience, while investing heavily in AI, automation, and omnichannel integration.
FTI Consulting also outlined how US Large Format Retail has been forced to adapt in recent years under pressure from discount giants, mass general merchandisers, and the “Amazon effect”. While some operators have struggled to keep pace, others have redefined their value proposition. Experiential retail, once a buzzword, has become a strategic imperative, with brands like Dick’s Sporting Goods and Home Depot differentiating through in-store experiences that foster loyalty and engagement.
Retail media networks (RMNs) are also emerging as a powerful frontier. FTI pointed to a growing trend among US Large Format Retailers to replicate the success of e-commerce platforms by digitising the in-store experience. By applying data-driven advertising to physical retail environments, stores are transforming into monetisable media channels, generating both advertising revenue and measurable uplift in product sales.
Sustainability and innovation were also front and centre. Fuel co-location, common in the Large Format Retail model, is shifting, with operators integrating subleases for food, beverage, and convenience to diversify their offer and future-proof their real estate. DIY chains, meanwhile, are navigating a more trend-driven, fickle consumer, making innovation in product curation and in-store marketing a critical differentiator.
Notably, the discussion also explored the evolving relationship between traditional retailers and direct-to-consumer (DTC) brands. As DTC players seek scale and access to broader customer bases, they’re turning to Large Format Retail for support in pricing, inventory, and promotions. In return, retailers gain access to new, in-demand products that help drive foot traffic and growth.
For members of the Large Format Retail Association members, the briefing provided valuable perspective. While the markets differ, the underlying trends – digital integration, curated experiences, operational efficiency, and cross-channel innovation -are universally relevant. As Large Format Retail in Australia continues to evolve, insights from global peers offer a timely opportunity to learn, adapt, and lead.
The Large Format Retail Association Overseas Study Tour continues in Miami this week, further unpacking global best practice and how it can inform the future of Australian retail.
