As they plan for the future, retailers have many challenges to meet.

In a new report, Ian MacKenzie, Chris Meyer, and Steve Noble of McKinsey & Company identify five key trends: “demographic changes, multichannel and mobile commerce, personalized marketing, the distribution revolution, and emerging retail business models. Each trend is powerful on its own, and collectively they will redefine what it takes to be a successful retailer.”

According to MacKensie, Meyer, and Noble: “Big changes are inevitable and retailers must act now to win in the long term. There is historical precedent for this kind of upheaval, which recasts the industry’s winners and losers. Within the past century, local corner stores gave way to department stores and supermarkets, then to suburban shopping malls, then to discount chains and big-box retailers. Each of these shifts unfolded faster than the one that preceded it, and each elevated new companies over incumbents. Indeed, six of the ten largest US retailers in 1990 have since fallen from their positions as new winners, such as Amazon.com, Costco, and Walgreens, emerged in their place.

Click the chart to read more.