Retail merchandising is going social, according to a new study. The sector is leading the way for adoption of the relatively new technology.

The study by IDC, 2012 U.S. Social Media Trends by Vertical, found that retailers are driving social media adoption. For example, companies are using analytics and information gained from sites such as Facebook, Groupon and Twitter to develop more targeted marketing messages for their audiences.

Additionally, retailers are using numerous channels, such as mobile, to integrate their online advertising strategies. Facebook and Twitter are proving especially helpful forums for collecting customer feedback and increasing product awareness.

"The most popular reason businesses are using social media is to increase brand and product awareness," the website Business2Community asserts. "Based on the fact that social networks have increased the range and speed of word of mouth conversations to travel, this is one of the best qualities social media has to offer companies."

A recent article in The Guardian suggests that part of the effectiveness of social media can be explained by psychology: it allows people to talk and share with other individuals with similar passions.

The drug store powerhouse Walgreens announced in a press release on July 5 that it will buy 144 stores that are currently being operated under LaFrance Holdings. Walgreen Co. has settled with LaFrance for a $438 million dollar purchase in an effort to boost Walgreens' weak sales.
 
The deal is set to close in early September, giving Walgreens access to more coverage in the mid-South pharmaceutical sales market.

"It will provide significant new pharmacy business for us in this region, while also enabling us to bring the Walgreens experience to many additional smaller communities where USA Drug has developed strong operational expertise" stated Walgreens president and CEO Greg Wasson.

The Deerfield, Illinois-based company is trying to revamp its less-than-stellar sales through the purchase of a 45 percent stake in Alliance Boots, a leader of European pharmaceuticals, the Los Angeles Times reports. As of June 2012, Walgreens was the owner and operator of 8,359 stores across the United States, Guam and Puerto Rico, the newspaper notes. Walgreens saw sales dip to $5.6 billion, down from $6 billion in June 2011.

As Walgreens expands, it may need new ways to track stock and sales across all of its locations. Inventory management software, such as the applications offered by Retail Pro, allows inventory-heavy stores to give customers the best purchasing experiences. 

For ecommerce merchants, one of the most disappointing things is losing a customer who visited a site and left without buying anything. However, they may be able to get a second chance at reaching these individuals, thanks to a new advertising offering from Facebook.

Facebook will now allow for real-time ad bidding, which means the social network will make use of cookies to monitor customers' browsing histories. For example, a shopper who leaves a retail website to then browse Facebook could be targeted once again on the social network if the merchant is participating in the advertising initiative.

"This means that advertisers can deliver more relevant advertising in a timely manner at a scale not possible before," a Facebook spokeswoman told Internet Retailer.

There are two major caveats, though. First, the program is only open to American brands. Second, because the initiative only involves the marketplace ads on the right-hand side of the screen, merchants won't be able to target mobile consumers.

Facebook has slowly but surely given merchants new ways of interacting with consumers. Most recently, the social network launched Promoted Posts, which enables retailers to set a promotional message at the top of their profiles.

Despite a number of big-name retailers working hard to launch digital flyers and mobile shopping pamphlets, a number of them are still launching more traditional paper marketing materials as well.

For example, in June, Walmart increased the number of flyers it sent to consumers by 100 percent compared with the same time frame last year. The company dropped three times as many flyers in key markets this year, while it also more than doubled the page count, the Market Track report notes.

Staples similarly increased distribution by 33 percent. Kmart and Sears also boosted distribution, while Best Buy, CVS and Walgreens lifted the number of pages per flyer. On the flipside, JCPenney saw the biggest downgrade in both total circulation numbers and page count.

"Overall, this month saw gain in flyer distribution as well as the size of flyer," the report explains. "Interestingly, a large set of retailers did not change their distribution strategy at all this month, and only focused on the size of flyer."

New mobile devices are gaining more traction with retailers because they enable consumers to access circulars no matter where they are.

Despite the fact that some major brands have pulled out of advertising on Facebook, a new report from comScore highlights the value that the social network can bring to retailers in terms of promotional efforts.

The report suggests most brands have an amplification ratio of 0.5 and 2.0, which means they are extending their reach by between 50 and 200 percent every month. This can grow even further when social media is used in conjunction with other paid media. Exposure to Premium Ads on Facebook may drive significant lifts for online and same-store sales as well.

"Social media continues to emerge as an important marketing channel and major brand marketers are devoting more time and attention to understanding its impact on consumers," said Andrew Lipsman, comScore vice president of industry analysis.

"While marketers understand the importance of a channel that now accounts for one in every seven minutes spent online, many are challenged to quantify its effectiveness," he added.

More than 800 million consumers are registered with Facebook, with upward of 200 million accessing the site from their mobile devices. Facebook reaches a significant portion of consumers, which makes it important to marketing initiatives.

Previously, online, mobile and in-store shopping experiences were likely handled as different platforms. However, a new report from Retail Systems Research suggests companies are looking to consolidate their various sales platforms as they further focus on providing a uniform shopping experience.

The 66 retail respondents all said that consolidation is important, but as few as 32 percent have actually done so. Most focus on relatively simple tasks first, such as marketing.

There is a notable advantage to consolidation, though. Out of a group called "retail winners" – those that achieved 3 percent year-over-year growth – all have begun to form consolidation plans.

"Enabling true cross-channel capabilities, exposing product and inventory information across the entire enterprise, empowering in-store associates to meet customer needs and proactively managing the relationship with consumers will enable retailers to build brand loyalty that is more valuable than merely delivering a low price,” the authors say, as quoted by Internet Retailer.

Many merchants are striving to integrate software solutions that will help them boost store operations and consolidate their efforts.

For most brick-and-mortar – and even ecommerce – retailers, Amazon has been a pain in their point-of-sale systems, causing prices to drop and even prompting some customers to move online.

However, as much as retailers may not want to admit, the online giant has seen extraordinary success and can offer them many lessons in winning the retail competition, including how to poke holes in its business model.

U.K. retailers John Lewis and Aurora have already found a few ways to set themselves apart from Amazon by doing things the retailer is unable to do. For example, department store John Lewis has built a reputation for customer service, Retail Week reports.

Smaller or brick-and-mortar retailers shouldn’t panic over Amazon, as every period has had its major competitor. "There are ways to compete with Amazon and I'm sure retailers will find a way to do that," Michael Jary, partner at QC&C Strategy Consultants. "Ten or 15 years ago, everyone was panicking about not being able to compete with Walmart. It has indeed changed the industry, but retailers have also found ways to compete with it."

Multi-channel operations are also providing businesses with success, enabling them to reach a wider array of customers.

Retailers that aren't taking advantage of new mobile and social technologies to drive sales and engage consumers are potentially leaving money on the table, according to Bernadine Wu, founder of consultancy FitForCommerce.

Speaking at the Internet Retailer Conference & Exhibition 2012, she said retailers make the mistake of underestimating how many people are looking for their products and services via this new technology. At the very least, someone is reading email newsletters from their phone, Wu explained.

Citing data from Retail Systems Research, she said 79 percent of retailers know mobile and social media are important, but leveraging them is the perplexing part of the equation.

"For retailers hoping to do more on social networks, the key is to jump in and find out where the audience is looking for shopping information – Facebook, Twitter, Pinterest, Foursquare –  and start engaging there," the news source adds.

The number of smartphone owners is growing rapidly, according to data from comScore, and as more consumers trade up for these devices, it will become crucial that retailers have channels set up to engage these individuals.

Shopkick, a mobile check-in service, has recently taken off with a variety of retailers. American Eagle Outfitters is the latest merchant to roll out expanded support for the initiative at stores nationwide.

Shopkick will automatically check shoppers into retail locations when they enter the store, enabling brands to use it as a pseudo customer loyalty program. American Eagle will leverage the program as a part of its existing rewards program, converting Shopkick "kicks" into AEReward points. All customers need to do is visit the store with their smartphones on hand.

"The American Eagle Outfitters customer is a barometer for the next generation of shoppers; they use their mobile phones to help them shop, they're tech savvy and social," said Doug Galen, chief revenue officer of Shopkick. "As one of Shopkick's first partners, AEO has demonstrated an early commitment to providing real value to customers through mobile."

Target also recently expanded its Shopkick initiative. The company previously tested the program in a few key markets and after witnessing the success of the initiative, decided to roll it out to its 1,700 stores nationwide.