While major corporations may seem to receive the greatest amount of attention, this year specialty retail sectors are putting their retail software to use and experiencing great success.

Off-price apparel businesses such as TJ Companies – think TJ Maxx – and Ross Stores both saw revenue increases in the first quarter of this year, Forbes reports. TJ Companies saw first quarter earnings grow by 55 percent while sales increased by 11 percent, totaling $5.8 billion and surpassing analyst projections of $5.75 billion.

Ross Stores surprised analysts even more in the first quarter, according to Forbes. The consensus estimate placed the retail company at reporting revenue of $2.34 billion, yet Ross Stores easily beat expectations with $3.26 billion in revenue.

These numbers draw attention to and even dispel a problem plaguing the speciality retail sphere: marketing. Mobile devices are all the rage in the marketing sector, and purportedly may make or break how retailers connect with their customers.

According to a survey from Briteskies, only 17 percent of specialty online retailers offer a mobile website. However, with the numbers seen above, is mobile as really important as we've been led to believe?

Canadian "border retailers," i.e. those who are in close proximity to the U.S., face unique challenges when it comes to retail merchandising, especially as consumers are increasingly lured south of the border to shop.

In addition to many tax-free shopping areas on the U.S.-Canada border, a new increase in the duty-free limit worries both retailers and economists, The Vancouver Sun reports. In fact, a recent report from the Bank of Montreal found the business lost to the U.S. could be hurting the Canadian economy.

New legislation on the duty-free limits as outlined by March's budget states that for visitors who stay longer than 24 hours in the U.S. the duty-free limit will increase from $50 to $200. For those who remain in the country longer than 48 hours, the cap rises to $800.

"A culmination of factors is likely to unleash a wave of Canadians cross-border shopping this summer in numbers not seen in two decades," he said, according to the paper. "There are already more than 50 million visits to the U.S. by Canadian residents annually … (and) those numbers are poised to swell when Ottawa increases the duty-and-tax free limits on June 1."

However, for U.S. retailers, the increase could be a boon for business, encouraging shoppers to buy more and boosting the U.S. economy.

According to a new survey from Forrester Research and Shop.org, approximately nine in 10 retailers (91 percent) have some sort of mobile strategy in place, regardless of whether it's an app, a website or another means of engaging these shoppers. The new report, called "The State of Retailing Online 2012," culled data from nearly 60 retailers in the United States.

Responding retailers revealed their mobile initiatives generated approximately 4.7 percent of their total web sales in 2011 (3.2 percent coming from tablets and 1.5 percent originating from smartphones). It's crucial that merchants not lump these users into the same category, though – the report also noted that tablet shoppers were apt to spend more money than smartphone users.

"Retailers must continue to look for unique ways to elevate their brand in such a competitive market. Tablets and mobile devices offer the perfect answer, with opportunities to create specialized apps, drive web sales and create an engaging and convenient shopping experience," said Shop.org executive director Vicki Cantrell.

Merchants worldwide are integrating mobile into their business strategy. A separate survey suggests 45 percent of French retailers have some sort of mobile initiative in place.

Retailers are in the process of trying to get consumers offline and into stores, with many offering new services and radically changing the shopping experience to convince customers there is still a reason to head to brick-and-mortar locations.

For example, Kmart recently began offering a bill-pay service to shoppers who may want to take care of some other necessities before they shop. The service, offered from Fiserv, will enable Kmart customers to pay everything from utilities (electric and gas) to credit card statements, Retailing Today reports. This service will cost $1.50 or less per transaction and consumers have the option of using cash or PIN-based debit cards.

"We are continuously seeking convenient ways to help customers manage their personal finances. The debut of Kmart's in-store bill pay program does just that – it gives our customers access to a fast and convenient way to pay bills and manage their finances," said Keith Brand, vice president of alternative financial services for Kmart.

Macy's recently changed store operations as well to offer a more compelling experience. For example, the brand introduced a virtual concierge service that can make beauty product recommendations.

To maintain revenues, companies have tailored retail operations to keep a tight hold on inventory, and the strategy is paying off.

Footwear companies such as Foot Locker, Brown Show and Dick’s Sporting Goods benefited this year not only from a warmer winter, but from maintaining lean inventories.

In fact, Foot Locker saw impressive gains on the stock market in the first quarter. Shares for the retailer were up by 10 percent for $30.89 a share, while Brown Shoe, which owns the Naturalizer brands, was up 9 percent – valued at $9.51 per share, Reuters reports.

"(Inventory management) bodes well for product margins in the second and third quarter," CL King analyst Steven Marotta said about Brown Shoe, according to the news source.

Keeping inventories lean helps retailers reduce supplier costs and allows the profits gained to go further, as they’re covering fewer expenditures. However, retailers saw revenues boosted by unseasonably warm weather, which encouraged more consumers to get moving outside.

Retail operations have been increasing competition with their online counterparts for the same customers. However, one demographic that's not dismissing brick-and-mortar retailers anytime soon is the grocery shopper.

According to new research from Point of Purchase Advertising International, an association for retail marketing, 76 percent of grocery shoppers are making decisions in-store.

Shoppers are reportedly using in-store marketing and branding cues to help them make decisions. The study reports that retailers that fail to implement marketing cues their consumer base will respond to risk pushing shoppers to other retailers and shops that can perform better.

The research identified four further key findings about today’s shoppers compared to those of the past. One of the most important things to do is for retailers and companies to put their brands "on display."

"If you're not utilizing in-store marketing to put your product on display you're likely losing out in the battle at the shelf to get your product into the shoppers basket," the study reports. "The study found that nearly 1 in 6 brand purchases are made when a display with that brand is present in store."

Additionally, retailers should investigate the array of options open to them to enhance their retail merchandising initiatives. The study suggested that retailers try placing product displays in secondary locations – 60 percent already do so – or working with marketers to create unique branding materials.

The creation of compelling content can do more than make the retailer stand out – it can transform floating shoppers into targeted buyers. Compelling and valuable displays can turn subconscious messages into active memories. In fact, 56 percent of shoppers said they recall creative in-store displays.

Finally, retailers should keep their point of sale software up-to-date, as the study reports that shoppers who use debit or credit cards are more susceptible to impulse purchases. On average, 57 percent of shoppers spend more than they plan to, while those who "overspend" when making an impulse purchase do so by 200 percent.

"The findings from POPAI's 2012 Shopper Engagement Study clearly tell us that as in-store and shopper marketing professionals we have some areas for opportunity and improvement," said Richard Winter, POPAI president. "[This] study underscores the importance of planning the in-store experience to win over shoppers where it matters most – the point of purchase."

However, retailers should not fail to pay attention to technological trends, as they can offer creative places for cross-promotions.

Digital technology can revolutionize retail merchandising. However, this time it's not smartphone or tablet computers that are the focus of attention – it's digital signs.

Digital signs are everywhere in retailing, yet some brick-and-mortar shops continue to see the benefit of the technology. Signs allow for businesses to provide in-store content, including tips and notices, as well as advertisements, Entrepreneur magazine reports.

However, businesses don't have to have a large marketing budget to make a difference. One well-placed sign can boost business and make companies better able to compete with large corporations. Kroma Makeup attests to how its signs came to pay for themselves.

"At the Plaza, our digital sign was placed at the foot of the escalator to drive traffic to our station and tell our brand story, while the multimillion-dollar companies we were competing against weren't using them," company founder Lee Tillette told the magazine. Since integrating the sign as part of its marketing strategy, the company saw its annual sales grow 7 to 8 percent.

Signs can also prove to be a more environmentally friendly marketing strategy, allowing companies to broadcast deals and promotions without printing paper flyers. 

Technology is invading the retail merchandising sector, with smartphones, mobile apps and tablet computers allowing consumers to conduct research and connect with other shops and customers while shopping in-store.

As a result, brick-and-mortar retailers are increasingly focused on creating an integrated retail experience that some experts claim to be more holistic than multichannel strategies, Forbes reports.

Sears is one retailer that has taken lessons from technology to heart. According to Forbes, the retailer has invested tens of millions of dollars into improving customer engagement, such as its "hyperlocal" mobile device application "SearsLocalAd.com."

The app allows users to receive local promotions, pricing changes and ads particular to local stores. "It extends the shopping experience beyond the print ad to include offers beyond the weekly circular," the newspaper explains. "The program lets shoppers build lists and send them to a mobile app, and have access to product reviews."

Other retailers have taken pains to revamp their store and customer engagement models as well. JCPenney recently hired a marketing guru from Apple to revamp its store layout and promotions.

Never underestimate the power of good customer service. According to a new report from American Express World Service, effective customer service practices used through social media can do more than improve brand relationships – it can actually lead to more sales.

The poll, which surveyed more than 1,000 American shoppers, found that nearly one in five consumers (17 percent) had used social media in the past year for customer service purposes. Those who encountered what they called "great customer service" through these social platforms increased spending by 21 percent with these brands. Shoppers that didn't make use of social customer service spent only 11 percent more with the given brand.

"Delivering outstanding service creates impassioned advocates and can serve as a powerful marketing weapon for companies," says Jim Bush, executive vice president of American Express World Service. "[Those consumers] tell three times as many people about positive service experiences compared to the general population. Ultimately, getting service right with these social media savvy consumers can help a business grow."

The opposite is also true – retail merchants providing poor customer service are likely to miss out on potential sales. Four in five respondents (80 percent) who tried to leverage social media for customer service
purposes but failed or received poor feedback from representatives opted not to make a purchase. Half of shoppers (55 percent) who encountered poor customer service – whether online or in-store – decided not to buy from that retailer.

Shoppers used social media for a variety of customer service-related purposes. Fifty percent contacted a company about an issue with services or purchases, 48 percent used the platform to praise a brand, 47 percent shared their shopping experiences with others, 46 percent vented about poor customer service and 43 percent asked other shoppers how to get a response from a brand.

Responding to customers

Retail merchants need to have some sort of presence on social media sites – there are more than 800 million Facebook members and 200 million Twitter users, which should make it obvious why it's important to be on these sites.

That said, a clearly defined social media strategy is also a necessity. Whoever runs a brand's social media accounts should have a course of action to follow when customers engage the brand through these sites, whether it's to complain, praise or simply ask a question.

Facebook is absolutely massive. More than 850 million consumers across the globe have an account on the social network, and approximately half of these potential customers use their mobile phones to stay connected 24 hours a day, seven days a week.

For retailers, Facebook has been an important tool to stimulate spending and bolster marketing efforts for a long time. Shortly after implementing the "Like" button a few years back, retailers immediately noted the benefits, with all the key metrics – sales, engagement, website visits – skyrocketing for those using the function. For example, the Gilt Group told The Wall Street Journal in 2010 that the Like button boosted sales by 50 percent.

Facebook has noted the success retailers have had with the Like button and has been rolling out new features over the course of the past year to further improve on the capabilities of these functions. The "Want" and "Own" buttons, for example, enable consumers to tell their friends and family which retail products they are interested in or have already purchased.

The action button

Now, the social network is enabling retailers to add action links to their Timeline pages, Internet Retailer reports. This function allows retailers to set other actions on their timelines. For example, foursquare rolled out a "Save this Place" action button that enables consumers to add a location on to their to-do list to check out at a later date. Fab.com similarly rolled out a "Fave this Product" that adds particular items to the shopper's favorites at the retailer's website.

"When a shopper clicks on the link, that action can appear in his Facebook connections’ news feed, the first page he sees when logging on to the site; the ticker, which features updates on what a Facebook user’s friends are doing at that moment; and on his timeline," the news source notes.

There are a variety of ways retail merchants can make use of Facebook, and the Like and action buttons are only a few of the tools at their disposal. A number of retailers also use the social network for customer service or for advertising via the paid display options.