Category Archives: Merchandising and Marketing

by Retail Pro

Black Friday weekend sales down, but overall spending expected to rise

With Black Friday having come and gone, many retailers may have found that overall customer spending was down slightly in 2013 from 2012. According to the National Retail Federation (NRF), customers spent an average of $407.02 during the Black Friday weekend this year, while they purchased $423.55 in the same period last year. 

Despite this shift, Matthew Shay, NRF president and CEO, stated that overall holiday spending will still increase by 3.9 percent year-over-year, Multichannel Merchant reported. Shay emphasized that the shorter sales period between Thanksgiving and the end of December has affected purchases, and that many customers have been shopping earlier in response. 

"Retailers are going to be very aggressive with promotions. The ones who are most aggressive are going to grab those holiday dollars," said Pam Goodfellow, consumer insights director at Prosper, according to Multichannel Merchant. 

Notably, 2009 was the last year without overall growth in retail sales. As such, merchants should prepare for an uptick in consumer traffic, both online and off. Those with powerful retail software in place will be able to move the high volume of holiday shoppers through the point of sale quickly, as well as reach the growing segment of ecommerce and mcommerce customers who are opting for online purchases rather than visiting brick-and-mortar locations. 

by Retail Pro

Many shoppers plan to make fewer trips to retail locations this year

Planning for the holiday sales season often tests merchants' retail inventory management skills and software. Anticipating the demand of customers and how quickly certain items will sell out before they need restocking requires delicate planning, an understanding of consumer spending habits and what products will be big this year. 

Due to the prevalence of mobile technology, 46 percent of consumers will be making fewer trips to retail locations during the holiday season, according to a recent PriceGrabber survey. Many patrons will enter brick-and-mortar stores confident in their ability to find the best bargain or to benefit from price-matching deals. The source discovered that 72 percent of smartphone owners use between one and four shopping apps, and this will create an overall more savvy customer base. 

Additionally, 23 percent of consumers will be buying items from their mobile phones, which will also reduce the number of trips shoppers take to nearby retail locations. While this habit may result in overall less foot traffic, merchants can still expect an uptick in total overall purchases, with a 2.4 percent spending increase anticipated by ShopperTrak. 

by Retail Pro

Many consumers divided over Thanksgiving and Black Friday bargains

This year, many retailers are planning on opening their doors on Thanksgiving Day, and they have been improving their store operations, working to streamline their point of sale systems and otherwise striving to create a seamless experience for what will be the the biggest sales period of the year. The success of this decision will be tested soon enough and in light of the shortened window for the holiday sales season this year, it is an understandable choice. However, market research company Lab42 found that seven out of 10 customers think that stores should be closed on that date, when only 60 percent held similar beliefs in 2012. Despite their protests, though, 22 percent of these respondents still plan on shopping on Thanksgiving. 

Meanwhile, Black Friday's move toward a Thursday schedule is not convincing all consumers to shop early. Many customers will save their trips to the store until December, as they believe similar bargains will still be available after the initial sales rush. 

The expanding role of ecommerce
Even as some shoppers turn away from Black Friday bargains, many are looking to ecommerce to fulfill their gift-buying needs this year. Lab42 found that half of holiday shoppers plan to spend more online this year in comparison to 2012, and the firm suggested that this may be motivated by skepticism about deals on Black Friday. While 30 percent of customers in 2012 felt like they could get similar deals to Black Friday online, 38 percent believe so now. Economic improvement and increases in disposable income are also encouraging greater amounts of spending this year. 

Many still interested in Black Friday bargains
But while many consumers think retail stores should be closed on Thanksgiving, more than half of the survey's respondents who plan on shopping on Black Friday will do so before 3 a.m., and 26 percent may take advantage of the additional Thanksgiving hours. Promotions are a strong driver for drawing customers into stores, and while email used to be the best way for shoppers to discover the latest promotions, more people will be turning to social media this year to inform their purchasing habits. 

Although consumers may be divided about shopping on Black Friday, overall spending will be up, and merchants should be ready to manage an increased volume of customers in both their brick-and-mortar locations and on their websites. With consumer confidence and spending up, retailers could see considerable success by meeting the shoppers' needs. 

by Retail Pro

Omnichannel efforts boosting retail success

Omnichannel has become standard practice for some retailers of late, as the strategy allows merchants to meet customers no matter how or where they shop. The versatility of the sales method requires retail software that is capable of working across all levels of an organization, but at the same time provides considerable convenience to shoppers, which in turn drives purchases. 

Based on OpinionLab's Holiday Preview Customer Feedback Index, companies that offer versatile omnichannel options outperform strictly ecommerce-related businesses. OpinionLab compared omnichannel retail against e-retail on seven different metrics that measured customers' preferences and the quality of their experiences, and found that online-only retailers beat out other stores based on the information available about products and within user accounts. 

Conversely, omnichannel retailers provide a better experience through their service and support, as well as during checkout – both key factors in a business' success. 

Multichannel Merchant noted that these findings disprove some of the predictions made about brick-and-mortar retail made in the past year, as the information highlights the importance of physical locations for consumers. Returning items at a store is generally easier for consumers than shipping delivered items back to the merchant, and multiple purchase and pickup options at the point of sale can also win customers over. 

by Retail Pro

Barnes & Noble reaching out to brick-and-mortar customers through “Discovery Friday”

Retail industry professionals know that while ecommerce is an increasingly important part of their industry, brick-and-mortar sales are still the bulk of their business. For consumers and merchants alike, there are a number of advantages to shoppers wandering the aisles. Customers could see and try on or test products that they might not have bought or noticed online, and stores can benefit from the impulse sales that these habits generate. This also reduces the chance that an item will be returned, and it simplifies the refund process when one is brought back. 

Because of the advantages inherent to brick-and-mortar sales, some retailers are running events leading up to the holiday shopping season to draw customers into their stores. Integrated Solutions for Retailers recently highlighted Barnes & Noble's own efforts to attract shoppers with its "Discovery Friday," which will take place on November 22. At this time, the book seller will run a variety of games, giveaways, storytelling sessions and other activities meant to drive customer engagement.

According to the news provider, this effort is meant to showcase the advantages of having access to on-the-floor associates who can answer questions and provide recommendations to curious shoppers. Although discounts and other promotions are an important part of the holiday shopping season, customer service can help encourage brand loyalty that extends beyond the price point. 

by Retail Pro

Customers most value great service

With the holiday shopping season just around the corner, retail industry professionals are ramping up their plans to best serve their customers. For many merchants, this means hiring additional staff, offering substantial discounts and providing free shipping throughout the next two months. 

Although free shipping and discounts are two of the perks most desired by consumers, they are only the second and third most important considerations for the average shopper, according to a recent survey from PriceGrabber.com. Based on the poll, 70 percent of respondents value good customer service above all else, and it can help ensure their loyalty for future purchases. 

While achieving good customer service can be harder to accomplish than applying free shipping and discounts, there are a few steps that merchants can take to reach that goal. Having enough staff on the floor can improve store operations immensely, but eliminating long lines with capable point of sale software can also reduce a significant amount of shoppers' stress. Complementing this primarily brick-and-mortar tactic with free shipping can assist retailers in appealing to the widest variety of consumers this holiday shopping season. 

by Retail Pro

Digital coupons used by majority of US Internet users

Coupons are a staple of the retail industry and have remained so no matter how often the shopping experience has evolved. They can help drive sales and encourage shopper loyalty while providing businesses with important data. When placed online, promotional codes help indicate the effectiveness of advertising or other marketing efforts. They are not without their problems, since physical coupons can slow down lines at the point of sale when staff members must scan barcodes or enter other details, but recent innovations have streamlined this process. Namely, digital coupons can quickly be moved through and scanned. 

As ecommerce and mcommerce gain more widespread acceptance, it comes as no surprise that electronic coupon use has also risen. According to eMarketer, digital coupons are being used by the majority (52 percent) of adult United States Internet users for the first time. This represents a total of 102.5 million consumers, and is an 11 percent increase from 2012. 

Since eMarketer anticipates the percentage of digital coupon users to rise thanks to growing mobile device ownership, merchants should expect to process more smartphone-based discounts at the POS. Deploying versatile retail software that can meet this demand will help improve customers' shopping experiences and avoid backed up lines. 

by Retail Pro

Omnichannel retail draws more overall sales

Retail encompasses a variety of specialties, from apparel and accessories to furniture and food. Although most industry professionals know the value of both ecommerce and brick-and-mortar sales, many recognize that some of their customers prefer one channel over another. While every tablet is essentially the same, the way clothing looks on shoppers is less certain, so they may be tempted to buy their electronics online and their garments in person. But even those individuals represent only a portion of potential revenue sources. 

Reign of the omnichannel merchant
Merchants can maximize their sales and reach the most consumers possible by operating across multiple channels. According to Deloitte's recent findings, omnichannel retail can generate 76 percent more revenue than brick-and-mortar sales alone. Shoppers who buy items in person, on the Internet and with their mobile phones are expected to spend $1,643 on average during the coming months. 

But while omnichannel sales have the potential to garner the most sales this holiday season, ecommerce will be the preferred point of sale for most customers. For the first time since Deloitte conducted its survey, Internet-based retail will draw more shoppers than department stores. Because of this, merchants should ensure that every item they have available for sale is displayed online. Deloitte's study discovered that 77 percent of consumers will go elsewhere if a desired item is not listed. By contrast, only 45 percent of respondents said they would go to another chain if they could not find what they wanted. When finding products is as easy as tapping a few keys, retailers must strive to make as much of their inventory available online as possible. 

Holiday sales dates may be less important this year
Just as omnichannel retail and ecommerce have risen in importance, once-critical sale dates appear to matter less to shoppers. Forty-five percent of respondents to Deloitte's survey said that Black Friday is not as important as it once was, and only about 25 percent of consumers intend to purchase items on Black Friday or Cyber Monday. This could take some of the burden off staff members during traditional rush days, but merchants may want to factor in a more spread-out revenue stream into their holiday business strategies. 

For optimum results this holiday season, merchants should utilize POS software that seamlessly integrates all aspects of their enterprise and can meet customers' shopping needs regardless of their preferred channel. Convenience will be one of the key motivations for customers, so retailers will want to ensure an easy experience across all channels. 

by Retail Pro

Privacy and convenience are two important customer concerns

Loyalty programs are an important part of many retailers' business strategies. They help encourage additional purchases, draw shoppers back into brick-and-mortar locations, gather customer data and often enable the personalization that many consumers crave. While Mintel reported that enrollment in these initiatives is up for all retail categories, it also found that many customers (32 percent) are concerned about how tracking their purchases might affect their privacy. 

The inherent contradiction between consumers' desire for privacy and personalization may come as a surprise to some retail industry professionals, but 13 percent of loyalty members are frustrated with the amount of information requested of them, and 10 percent want more control over their privacy in their programs.

Additionally, some consumers (16 percent) do not think their loyalty programs represent their shopping habits, and 20 percent of the millennials polled are even more likely to believe this. A few of these customers may believe that they are offering their personal information without receiving anything in return, which may need to be addressed by merchants. 

"Reassurance of privacy is undoubtedly a key strategic tool in loyalty program engagement, but there is a paradox at play here between personalization and privacy," said Ika Erwina, retail and technology analyst at Mintel. 

Responding to shoppers' concerns
While there are a number of potential solutions to the privacy issue, a greater degree of transparency may reduce some consumer concerns. However, many of the features that consumers most appreciate in loyalty programs do not rely on personal data. According to Mintel's study, the most important attributes to loyalty members are the convenience of receiving rewards and earning points, as well as monetary rewards. Those benefits that are more reliant on personalization, like exclusive deals and coupons, still matter to shoppers, but not as significantly. 

Disentangling privacy and personalization may be difficult, but enhancing convenience should not be. Nearly 30 percent of respondents to Mintel's survey reported that they lack the time to redeem their loyalty points. Providing multiple options to do so, such as at the point of sale, through ecommerce channels and other methods can overcome this matter. Emphasizing these features over more data-driven benefits could assuage some consumer concerns. For younger shoppers, focusing on social and environmental problems may also be helpful, Mintel suggested. 

by Retail Pro

Consumers’ holiday gift giving budgets slightly reduced this year

The holiday season is the busiest and most important shopping period of the year. Retailers are preparing to meet the surge of customers by hiring on new staff, purchasing a healthy stock of additional goods and improving both their e-commerce offerings and store operations to cater to all of their patrons. However, merchants should ready themselves for a slight decrease in their customers' budgets. 

Recent findings from the National Retail Federation (NRF) anticipate that consumers will be spending less this holiday season. Consumers will be spending $737.95 on average, a 2 percent decrease from last year. NRF predicts that self-gifting will experience a similar reduction. But while shopping budgets might be lower, total retail sales are still expected to increase by 3.9 percent from 2012 to each $602.1 billion. 

While brick-and-mortar sales will still be key to retail success this season, brands that emphasize their e-commerce merchandising may still benefit from an uptick in profits due to a potential 15 percent rise in online purchases. Because many customers will be shopping on smartphones and tablets, it is important that retailers use a versatile point of sale system that works easily across all platforms.