1999 Retail Outlook Is Strong For Retailers That Focus On Technology, Baby Boomers and Their Children.

NEW YORK--(BUSINESS WIRE)--Dec. 1, 1998--

Report Examines Impact On Retailers Of Demographic and

Technology Trends

In 1999 and beyond, the most successful retailers will focus on technology to reach Baby Boomers, who are entering their peak earning years, and their children, according to a retail forecast by PricewaterhouseCoopers, the world's largest professional services organization. The 1999 Long-Term Outlook forecasts that the Internet and data mining will play an increasingly important role in reaching the two main demographic groups, Baby Boomers and Boomlets, as consumer purchasing power and discretionary income increase.

"Now more than ever, strategy and market focus will be the keys to success for retailers," says Carter Pate, Dallas-based Financial Advisory Services partner at PricewaterhouseCoopers and author of the report. "In this highly competitive and rapidly changing environment, retailers must concentrate on partnering with other retailers that offer complementary products, enhancing brand equity, delivering value, and mastering information technology."

The Outlook reveals that Baby Boomers will begin to place more emphasis on age-defying products and those that relieve stress. This consumer segment will seek products that bundle together related items and provide complete solutions to their problems. Retailers that focus on intercepting this customer at work, airports, tourist destinations, and other convenient locations will have the most success, the report concludes.

Boomlets (Ages 4 to 21) wield greater spending power and garner more influence over family purchasing decisions that probably any other time in history. They are more open and accepting of rapid change. As a result, the report says, many niche consumer markets will form in this group, causing marketers to spend considerable resources learning customer wants and desires. Technology and the Internet will be key to successfully reaching this generation, according to the PricewaterhouseCoopers forecast.

Technology now enables retailers to combine interactive websites with technologies such as data mining to better learn buying habits and profiles of customers. As consumers grow increasingly price conscious and have greater demands placed on their free time than ever before, they will rely more upon the Internet to provide a content-rich environment that allows them to obtain product information quickly and compare prices.

The Outlook provides the following recommendations to retailers:

-- Enter syndication agreements and joint ventures. These

alliances should include partnering with retailers that have

complementary or related products as well as with

manufacturers and suppliers.

-- Build brand equity. The advent of Internet marketing exposes

and bombards consumers with an ever-expanding array of

products and services. In this environment, brand equity will

be key to product differentiation.

-- Deliver value by meeting consumers need for convenience and

time. Provide bundled products and services that satisfy and

entire class of needs.

-- Identify and stay on top of consumer demands and needs by

using the right information technology, such as data mining

and the Internet.

The report also provides forecasts for the following market segments: apparel and accessory stores, building materials/hardware, car sales, discount department stores, consumer electronic and appliance stores, and furniture and home furnishing stores.

Note to Editors: The name PricewaterhouseCoopers is one word, with upper case P, uppercase C and all other letter in lower case.

With a worldwide network of 6000 professionals, PricewaterhouseCoopers' Financial Advisory Services ("FAS") practice provides creative solutions and ideas that increase value to clients during critical periods and when they are making important decisions that define their future. The FAS business is organized along five product lines. The Business Recovery Services, Dispute Analysis & Investigations, and Valuations & Shareholder Value product lines are the largest in the world. The Project Finance & Privatization product line rated second in Privatisation International's global league table by number of privatization financial advisory assignments and second in Project Finance International's global ranking by number of project finance advisory mandates. The Mergers & Acquisitions product line was second in the world in number of deals completed, according to Securities Data Company. PricewaterhouseCoopers advised on 341 deals with a total worth of $33.2 billion.

PricewaterhouseCoopers (www.pwcglobal.com), the world's largest professional services organization, helps its clients build value, manage risk and improve their performance. Drawing on the talents of more than 144,000 people in 152 countries, the organization provides a full range of business advisory services to leading global, national and local companies and to public institutions.

PricewaterhouseCoopers refers to the US firm of PricewaterhouseCoopers LLP and other members of the worldwide PricewaterhouseCoopers organization.