In all my global presentations, I share insights on the three post-World War Two megatrends that created major power shifts in retail business models. These shifts go beyond mere technological advancements or consumer preferences; they encompass a holistic transformation in how brands engage with customers, redefine their value propositions, and adapt to an increasingly interconnected world.
Retail is not immune from the major technology advancements that impacted all industry sectors since the start of the industrial revolution. These long waves of innovation have provided the base fuel to many societal changes.
We are currently in the sixth long wave of innovation with artificial intelligence, Internet-of-Things, robots and drones, and cleaning technologies leading the way. Crucially, note that each technology wave is getting shorter.
This article summarizes my three transformational trends that have transformed retail since World War Two. It will explain the triggers, the momentum, the impact, and the power shifts driven by these major trends. As with the long waves of innovation, the fourth megatrend has already arrived and I am guessing you know what it is. You will, however, be surprised by the societal group that will gain the most power from this latest disruptive trend.
Megatrend 1: Consumerism on Steroids
The post-World War Two era saw an explosion of economic growth driven by a rise of mass production, suburban expansion, and a revolution in advertising and marketing. These changes were the foundation for today’s modern business practices and consumer culture.
Consumer spending surged in the first four years after the war, Americans moved into over one million new homes annually, and spending on furniture and appliances increased by 240 percent. Between 1945 and 1949, Americans purchased 20 million refrigerators, 21.4 million cars, and 5.5 million stoves. New car sales quadrupled between 1945 and 1955. By the end of the 1950s, about 75 percent of American households owned at least one car.
The first universal credit card—the Diner’s Club Card—started in 1950 with 200 cardholders and 14 participating restaurants in New York City. One year later, it counted over forty thousand members. By 2018, the United States saw nearly forty-five billion annual credit card transactions.
The arrival of television provided a new platform for consumer product manufacturers to advertise to new audiences.
Mass production led to lower prices across multiple categories.
The ever-efficient post-World War Two production lines placed the majority of the power of retail into the hands of manufacturers. Consumerism which exploded in the United States after the war eventually spread to the rest of the world.
Megatrend 2: Retail Gets Its Stripes
The 1970s were characterized by a variety of significant cultural, political, and social changes. It is the decade of the Watergate scandal, the end of the Vietnam War, the first Earth Day, listening to disco, rock, and punk music, the hippie revolution, the introduction of color television and early personal computers, stagflation, and even an oil crisis.
On the morning of June 26, 1974 at a supermarket in Troy, Ohio, a pack of Wrigley’s Juicy Fruit chewing gum became the first grocery item scanned with a Universal Product Code, or UPC. We did not know it on that day, but this first item scanned triggered the second retail megatrend.
It took approximately 20 years for all major retailers to fully adopt the UPC barcode system. Walmart adopted the technology in 1983. By 1990, they became the number one retailer.
Walmart understood the power of barcode as did many other retailers. Those seemingly simple stripes shifted the power of retail from the manufacturer to the retailer. The raw data generated from each scan provided valuable information on what was being sold and which prices were popular, leading to more aggressive negotiations with manufacturers for valuable shelf space.
Megatrend 3: The Revolution in Your Pocket
Apple did not invent the smartphone. The first smartphone actually came to market in 1994. It was the IBM Simon which included a touchscreen, ability to send a fax, and also an email and calendar function. At a cost of $899, only 50,000 units were sold between 1994 and 1995 before it was taken off the market.
The smartphone that transformed retail was announced by Apple on January 9, 2007 and came to market at a starting price of $499 on June 29, 2007. When Steve Jobs made iPhone’s introduction, it marked a turning point in human interaction with technology. It redefined the way we access information, communicate with one another, and engage with the digital world.
Today, more nearly 1.4 billion consumers use iPhones.
The smartphone placed the power of retail into the palm of the consumer. Shoppers could walk into any store, having done homework on their devices, and instantly decide to buy from a competitor if the product is not available or because of poor customer service. The greatest danger for retailers is that consumers are much more knowledgeable about their shopping preferences than store associates because of smartphones.
The world is now getting connected by the mobile internet. By 2030, 76 percent of the global population will be connected and 91 percent of those connections will be on smartphones. This is a major growth opportunity for all global retail brands for incremental sales and building consumer loyalty.
Megatrend 4: The Secret Weapon to Enhanced Customer Loyalty
If you have been following my industry thought leadership content, you will have guessed that the fourth megatrend disrupting retail is artificial intelligence. The trigger was the introduction of ChatGPT on November 22, 2022. In its first five days, 1 million users signed up. By January 2023, the conversational AI chatbot had 100 million active users, making it the fastest growing consumer application in history. As of July 2025, ChatGPT handles an estimated 2.5 billion-plus daily prompts.
AI is transforming the retail landscape by enhancing efficiency, improving the customer experience, and driving sales. Major areas that will be impacted are personalization of shopping experiences, inventory management, customer service, pricing strategies, supply chain optimization, and even fraud/ theft detection.
Both retailers and consumers will derive major benefits from AI applications. Retailers will see greater financial and operational advantages. Consumers will experience greater convenience and more immersive shopping experiences.
Mobile and other connected devices will expand consumer power with tech savvy shoppers being much more demanding of retailers. Artificial intelligence will dramatically expand choices for consumers, place greater pressure on retailers to improve experiences, and test loyalty programs. Through AI consumer power will be on steroids.
A Brighter Retail Future
As with the long waves of innovation, disruptive changes to the retail industry are arriving faster. Growing middle classes in large markets such as China and India will contribute to greater innovation and sales growth.
The pressure will be on retailers to understand these megatrends and leverage technology to drive increased loyalty. The power shifts to the consumer will continue and will increase with artificial intelligence.
Technology will continue to disrupt business models. Online and physical store experiences will need to become extremely seamless. The winner will be a much more vibrant, growing global retail industry.
