While the economy may be giving retailers and their POS software headaches nationwide, store owners in Michigan are remaining positive.

According to the Michigan Retail Index, a project supported by the Michigan Retailers Association and the Federal Reserve Bank of Chicago, retail sales and forecasts in the state showed improvement over the previous year despite stalling in June.

The index found that 50 percent of retailers saw increased sales year-over-year, 33 percent reported declines and 17 percent reported no change. The index registered at 58.6 compared to 52.1 last June. However, the number was a decline from 61.9 in May.

"The performance of Michigan's retail industry slipped from May to June, catching up to a national trend that began two months earlier," said MRA President and CEO James P. Hallan. "However, we are still seeing year-to-year growth, a broader picture of where we are."

However, the small business sector has not espoused similar optimism. The National Federation of Independent Business reported small business sentiment fell three points in June, following a decline in May as well.

This entry was posted by Retail Pro on Thursday, July 26th, 2012 at 10:26 am .

For the past year or so, Amazon has fought numerous battles with state governments over whether they should force customers to pay their relative state taxes at the digital retail point-of-sale system.

However, earlier this year, the company ceded to Texas Comptroller Susan Combs and agreed to begin requiring customers from the state to pay sales tax on their Amazon purchases. This was only the beginning, though, and since then, the company has settled with a number of other states.

Amazon may not be so bad off from the deal. Bloomberg Businessweek reports that the retailer is planning to open another 13 warehouses across the nation, in what many believe is an attempt to speed up deliveries. Furthermore, states that look welcoming to Amazon could benefit from new revenue sources and jobs.

"Amazon is smart like a fox," John Otto, a state representative from Texas, told the news source. "The minute you put a physical presence in the state, you’re obligated to collect the tax."

The obligation cited by Otto is supported by a 1992 Supreme Court decision, Quill Corp. v. North Dakota. The ruling has come under increased attention as a result of tougher economic times and the increasing competitiveness of online retailers.

This entry was posted by Retail Pro on Thursday, July 26th, 2012 at 10:24 am .

After the firing of former Wet Seal CEO Susan McGalla, the careworn women's apparel retailer has begun the search for its next chief executive officer. However, in a statement today, Wet Seal's president and COO, Steve Benrubi, said the company might be looking into a possible sale after receiving a letter from shareholder the Clinton Group.

"The Wet Seal Board of Directors appreciates input from all of its stockholders and is committed to maximizing stockholder value. The company has engaged in a series of discussions with the Clinton Group following their initial letter on June 15," said Benrubi.

The struggling apparel company has seen declines in its comparable-store sales from 13 percent to 14 percent this month alone. According to CBS News, The Clinton Group owns 4.25 percent of Wet Seal's stock and has been urging the company to sell instead of searching for a new CEO. According to B. Riley & Co's chief analyst, Jeff Van Sinderen, the sale of the company could be imminent due to a shortage of CEO candidates for the fledgling corporation.

As Wet Seal revamps its image and operational management, it could benefit from retail solutions, such as the applications offered by Retail Pro. These POS software packages allow large stores to keep up with inventory in order to offer optimal customer experiences.

This entry was posted by Retail Pro on Wednesday, July 25th, 2012 at 9:11 am .

British retailers are hoping the impending 2012 London Olympics, which begin this Friday, will put to use their POS software and boost an ailing sector.

In the first half of this year alone, the U.K. has seen high street retailers such as Game Group, Clinton Cards, Aquascutum and Peacocks go under, and signs for the second half of the year don't look promising either. The question then on retailers' minds is whether the Olympics can bear fruit in the form of revenue.

A recent article in Retail Week has a hopeful tone, as the source reports that estimates suggest that the Olympics will represent a cash injection into London of more than $400 million. While much of this cash will be spent on hotels, food and transportation, retailers are still likely to benefit.

However, the source still has a few words of warning. "For London-based retailers, the Olympics may even prove disruptive to the throngs that normally crowd along Oxford Street," Retail Week explains. "Retailers are much more likely to see durable benefits if the current good weather is sustained and consumers are treated to a real Indian summer."

This entry was posted by Retail Pro on Wednesday, July 25th, 2012 at 5:42 am .

A growing number of retailers in the U.S. are standing out from the competition by carrying unique merchandise from developing nations. Recent legal changes and fair-trade developments have made it easier for artisanal cooperatives in countries like Morocco, Afghanistan, and Rwanda to produce and distribute high-quality goods to prominent retailers in U.S. markets, providing an opportunity for both groups to mutually benefit.    

While fair-trade groups have been helping disadvantaged producers for over a half century, the economic trend in recent decades has undeniably been globalization. Inexpensive manufactured imports have frequently made local and traditional production prohibitively expensive, even in industrialized western nations. But consumer demand is now shifting toward unique crafts as mass-produced, name-brand goods become increasingly ubiquitous in retail stores.

Ironically, the same trends of globalization that once threatened traditional goods have now made them luxury items. With the recent relaxation of U.S. import duties and innovative fair-trade distribution models, traditional handicraft can now reach new markets to satisfy demand for unique products. As a result, artisans in developing nations are experiencing a sort of cultural and economic renaissance. The newfound profitability of hand-made wares has sparked renewed interest in traditional production methods and local cultural identities. Centuries-old techniques for making classical Moroccan rugs and woven east-African baskets now effectively add authenticity – and value.

Today, shoppers at Macy’s can purchase a ‘Peace Basket’, a traditional hand-woven basket produced by Rwandan women who survived the country’s genocide in 1992. The group behind these baskets – Gahaya Links – has grown from 27 women in 2004 to over 4,500 artisans in more than 40 cooperatives across Rwanda.

In recent years, profits from traditional goods sold at U.S. retailers have improved the livelihoods of people across the world. Sales have funded plumbing for villages in Tibet, construction of new public facilities in Ecuador, and have mended societal bonds in Rwanda. “Through this kind of association where we meet every day, spending all day together, it makes you understand one another and forgive one another,” said Janet Nkubana, co-founder of Gahaya Links.

For retailers in the U.S., traditional goods represent an opportunity to diversity offerings by providing one-of-a-kind merchandise with significant cultural back-stories. In addition to Macy’s collection of goods from Gahaya Links, other retailers like Anthropologie, Same Sky, and Kate Spade have started selling a wide range of similar artisanal goods. For retailers and producers alike, this new trend is providing wealth and competitive advantage.

This entry was posted by Retail Pro on Tuesday, July 24th, 2012 at 10:17 am .

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. 

This entry was posted by Retail Pro on Monday, July 23rd, 2012 at 7:17 am .

Merchants have questioned the viability of mobile platforms compared to traditional point-of-sale payment platforms, such as brick-and-mortar and ecommerce. However, a new study from Shopatron suggests tablets are achieving similar conversion rates of traditional desktop computers, further highlighting the importance of incorporating these devices into a merchant's overall retail strategy.

According to the report, the overall conversion rates of tablets are only between 5 and 8 percent lower, with Shopatron clients noting approximately 6 percent of their total sales coming from tablets. As more consumers purchase these devices, the number of people shopping from them is sure to increase as well.

"It’s no surprise that conversion rates on tablets are nearing or outpacing the conversion rates of desktops," says Mark Grondin, Shopatron’s senior vice president of marketing, as quoted by Internet Retailer. "Browsing on a tablet is intuitive and user friendly, providing portability without sacrificing interface quality or functionality."

The face of ecommerce is constantly changing, and retailers will need to adapt if they want to capitalize on new opportunities. Merchants can learn more about the tools they need to streamline their ecommerce operations at the upcoming 2012 Retail Pro Global Conference.

This entry was posted by Retail Pro on Thursday, July 19th, 2012 at 11:21 am .

The face of brick-and-mortar retail is changing. In an era where customers can quickly and efficiently shop online and get prices that simply can't be beat by physical merchants, many retailers are responding not by competing toe-to-toe but by offering customers a completely different experience altogether.

So far, merchants have used a variety of tactics to achieve this goal, Entrepreneur magazine reports. For example, Studio Velo in California enables potential bicycle buyers to customize their products when they visit physical locations. Others such as Apple are striving to create unique experiences, eliminating traditional practices such as having a centralized point-of-sale terminal.

"The standard build-out of a retail space is all being re-imagined as each day goes by, with more innovative, energy saving and technologically advanced ideas," says Andrew Swedenborg, executive vice president of King Retail Solutions in Eugene, Oregon.

Store operations will continue to be a focus of brick-and-mortar retailers for the next decade as they come to terms with the burgeoning ecommerce sector. Merchants can learn even more about the next step in customer experiences by attending the upcoming Retail Pro Global Conference 2012.

This entry was posted by Retail Pro on Wednesday, July 18th, 2012 at 9:30 am .

Retailers are ordering more product to sell to consumers, an optimistic signal that suggests many merchants remain confident they will do more business than they did last year.

According to the National Retail Federation's report, import cargo value grew a minimal 1.6 percent in July compared to the same time last year. Moving forward through the "back to school" and holiday seasons, modest year-over-year increases are expected to continue.

"Whether consumers are going to have the confidence to spend during the next few months depends on what happens with employment, but retailers are being cautiously optimistic," NRF vice president of supply chain and customs policy Jonathan Gold said. "Sales can fluctuate from month to month, but these import numbers show that retailers are still expecting this year to be better than last year."

Total shipments hit 1.34 million twenty-foot equivalent units (TEU) in May (precise figures are released by the NRF on a rolling basis after the fact). A single TEU is one 20-foot cargo container or something equivalent to that volume.

Inventory management software, such as the solutions offered by Retail Pro, enable merchants to better plan for busy seasons as they order their products.

This entry was posted by Retail Pro on Tuesday, July 17th, 2012 at 11:34 am .

The number of consumers adopting mobile devices continues to grow. There are now 60 million Americans using tablets and 120 million carrying smartphones, according to data that was recently published by Statista. As a result, transactions conducted on these devices account for a greater portion of overall web-based sales, up from 2 percent in 2010 to 8 percent as of the first quarter in 2012.

Moreover, consumers have a tendency to spend more when browsing and buying on tablets. The average ticket total for an online purchase made via tablet is $123, according to Adobe Digital Marketing Insights. This is 20 percent more than shoppers spend on computers and 50 percent more than orders placed on mobile phones.

This could be good news for multichannel retailers, given that consumers are expected to continue investing in tablets. By 2014, it's predicted that 90 million U.S. consumers will be using tablets, according to eMarketer.

To capitalize on these sales opportunities, retailers must develop strategies for optimization, urges GigaOm. The site recommends retailers first investigate the experiences customers are having on the web-based storefront by collecting analytics. This can give merchants insight that can help them discern the type of visits their customers expect to have when they visit.

Learning about consumers' habits can help businesses understand what will turn traffic into conversion. Once they understand this key information, they can use solutions such as Retail Pro's software to provide shoppers with the best buying experiences. 

This entry was posted by Retail Pro on Monday, July 16th, 2012 at 9:36 am .