A recent report by Forrester Research revealed mobile commerce in the United Kingdom is expected to grow from $3.3 billion in 2012 to $23.49 billion (19.25 billion euro) by 2017. By that time, 6.8 percent of online transactions are expected to be generated via mobile commerce.

The report points out, however, that mobile commerce is not to be confused with other mobile payment trends. It limits the definition to consumers using cell- or smartphones to make transactions for physical products or services without placing a phone call or speaking to anyone, as reported to Internet Retailer. In its limited form, this definition excludes digital wallet applications, tablets and near field communication (NFC) technology.

"Mobile buyers will mature from the early adopter profile today to become an increasingly mainstream audience – although this change will take time," writes report author and Forrester analyst Martin Gill, as reported by the source. "Shoppers will use their mobile phones to make an increasing amount of 'traditional' online purchases as they become more familiar and comfortable with the m-commerce paradigm."

Gill adds that these purchases will no longer be limited to primarily digital content such as ringtones, MP3 downloads or mobile applications, and will instead be replaced with small physical items that may be purchased on impulse.

To prepare for these trends, retailers can invest in ecommerce software to optimize their websites for smartphone screens. Retail Pro is one supplier of these programs, which can help merchants stay at the head of the retail technology curve.

This entry was posted by Retail Pro on Monday, July 16th, 2012 at 9:34 am .

While big-name retail brands may have been among the first to get heavily involved in ecommerce, it's the smaller merchants that are seeing better sales as they take the plunge. According to the new edition of the Internet Retailer's Second 500 guide, the average up-and-coming merchant has experienced a significant sales growth over the past year.

The guide suggests that smaller merchants have seen sales growth of 17.7 percent compared with 2011, compared to the average 14 percent increase observed among larger companies. Of course, this doesn't include the very tip of the top – Amazon's sales surged 40 percent and actually raised the growth rate of the top 500 by 6 percent.

Being small has several key advantages, such as being able to quickly respond to changing demand.

"We have the liberty to think through challenges and strategies quickly and without the hindrance of history," says Richard Mumby, vice president of marketing for web-only retailer Bonobos. "We are a new brand so we can speak to customers the way we want to."

Information is critical to responding to customer demands, and Retail Pro's software can help small retailers become even more flexible and responsive.

This entry was posted by Retail Pro on Friday, July 13th, 2012 at 10:01 am .

Inventory management extends beyond simply buying what's popular and scaling back on what's not – a lot of time and energy needs to go into developing an effective inventory management strategy. If retailers don't carefully plan out their initiatives, they may tie up capital in excess inventory, create picking errors in the warehouse or even miss sales opportunities in out-of-stock products.

"Inventory management is a continuous, concentrated effort – and a process that shouldn’t be handled solely at the operations level," Multichannel Merchant explains. "A successful inventory plan should also involve your marketing, catalog, ecommerce and merchandising departments. By managing your inventory against a master promotional calendar, everyone wins."

Focus on communication

When it comes to inventory management, communication between employees at any given merchant and with vendors is absolutely pivotal. On a store level, employees in different departments need to be able to convey which products they need to meet demand. This enables the person in charge of procurement to order enough stock to satisfy the needs of customers.

Furthermore, clear communication channels are needed between vendors and the retail brand itself. Open communication is crucial for any successful working relationship, and when vendors are able to understand the needs of retailers, they will also be better able to comprehend their inventory management plan as well, minimizing any shipping or stocking errors.

Standardize operating procedures

Establishing a regimen is crucial because it creates a standard that can be followed. By developing policies with vendors that must be adhered to, merchants can ensure their products will be shipped, received stocked and picked efficiently and accurately. Creating these procedures also helps to create a sense of regularity that minimizes the chances of merchants being left high and dry without key merchandise.

"For example: If you sell a product in packages of five, it’s critical to let your order fulfillment provider’s receiving staff know so they don't spend precious time breaking down the items into individual units, only to have the pick and pack staff re-kit the items before shipment," the news source adds.

Retail Pro offers a comprehensive inventory management solution that enables merchants to carefully monitor current stock, while also giving them in-depth sales information that provides insight on best-selling merchandise.

This entry was posted by Retail Pro on Tuesday, July 10th, 2012 at 10:13 am .

Chinese retailers are hoping to capitalize on the improving internet infrastructure in the country and are offering more ecommerce options, China's Ministry of Commerce reported.

Web sales in the country topped 782.56 billion Yuan ($124.22 billion), a 53.7 percent increase compared with the same time last year. Overall, ecommerce accounted for approximately 4.3 percent in total retail sales. Comparatively, ecommerce grew by 16.1 percent in the U.S. and accounted for 4.6 percent of all sales.

"In 2013, China is expected to surpass U.S. as the world largest online retail market," said Yaoping Jiang, vice minister of commerce, as quoted by Internet Retailer.

However, this growth is coming at the expense of overeager ecommerce giants. Many Chinese retailers are taking heavy losses now in the hopes of becoming a leader in the ecommerce sector as it continues to grow.

As Chinese retailers continue to diversify their offerings, technology solutions can help them engage customers and improve the overall shopping experience. Everything from retail POS terminals to security technology could be used to expedite the shopping process while ensuring merchants maximize return on investment.

This entry was posted by Retail Pro on Monday, July 9th, 2012 at 10:33 am .

Technology is being used to improve store operations at major retailers throughout the globe. For example, Lowe's has an inventory management system that can be accessed from mobile devices, enabling sales associates to quickly and efficiently look up information about products and their availability.

"It's been a great tool for helping customers right there on the spot," Chad Wallace, an assistant store manager at the Gaithersburg, Maryland, Lowe's told The Washington Post. "A lot of customers are impressed that we're able to use the phone to scan something on the shelf and find out the quantity."

That specific Lowe's location has more than 25 mobile devices that can be used as inventory management tools. Other applications allow employees to conduct point-of-sale transactions, look up competitor pricing and complete other tasks, all without disengaging the customer.

Retail Pro offers retailers a highly competitive solution that enables them to track inventory. This software can also be used to monitor fast-selling products, keep tabs on slow sellers and otherwise help their purchasing decisions.

This entry was posted by Retail Pro on Monday, July 9th, 2012 at 10:32 am .

The retail sector continues to be a strong one in Canada, but the majority of sales are going to the biggest players in the country, a new report from Ryerson University's Center for the Study of Commercial Activity. Approximately 100 retail brands are accounting for 75 percent of non-automotive retail sales and $220 billion revenue.

The Weston Group (parent company of a number of retail brands) was Canada's top retailer, followed by Walmart and Empire company. These three companies alone make up 23 percent of total retail sales in Canada and operate 3,104 locations in the region alone.

"Canada's smaller market size and the dispersed nature of the Canadian urban system means that greater corporate concentration levels in the Canadian retail marketplace are necessary to ensure that we can achieve economies of scale and remain competitive in the global economy," says Christopher Daniel, lead author of the report and a senior GIS analyst with the research center.

For smaller retailers, upgrading their point-of-sale systems may help. Not having a retail POS terminal that can accept a variety of payments may be causing some merchants to needlessly lose sales.

This entry was posted by Retail Pro on Friday, July 6th, 2012 at 9:48 am .

Online retailers have a number advantages over their brick-and-mortar counterparts – fewer operational costs because they don't need physical locations, a broader reach as they can engage anyone with an internet connection, etc. However, if there is one critical perk to operating an ecommerce shop, it's the fact that online retailers don't have to charge sales tax in some states.

This has obviously been a point of contention among many state governments and local retailers. Governments don't collect any tax money on these purchases, while brick-and-mortar retailers view it as an unfair advantage because it reduces the amount consumers have to pay. It's a lose-lose situation for both parties, with retailers losing sales to ecommerce merchants and governments losing money from taxes physical retailers would be paying.

As a result, many states are adjusting their laws to begin charging ecommerce shops taxes. Texas is the latest to take action that requires online-only retailers to collect taxes. Beginning July 1, merchants such as Amazon.com will need to charge shoppers sales tax on each purchase.

"A true free market is devoid of government preferences and special treatment," said Sandy Kennedy, president the Retail Industry Leaders Association (RILA), as quoted by RetailingToday. "Texas has made a powerful statement that it's time to end special treatment for online retailers and close the sales tax loophole that gives companies like Amazon an artificial leg up on Main Street retailers."

As many as eight states throughout the country have passed legislation requiring online retailers to collect sales tax and more continue to do so each month. California and Pennsylvania are slated to do so in September, while New Jersey and Virginia recently did this as well.

RILA was quick to suggest that Congress should take action and enforce this nationwide. Physical retail stores bring a lot to the economy, including new jobs, and giving ecommerce storefronts an advantage threatens their existence.

That said, it's paramount that physical retailers also improve store operations to create a better shopping experience. Now that the playing field is evening out, retailers can win over customers by providing an experience they can't get online. Many merchants are integrating new technology in a way that will help them better serve their customers, improving the ease of shopping and convenience dramatically.

This entry was posted by Retail Pro on Friday, July 6th, 2012 at 9:45 am .

Who says the brick-and-mortar experience is dead? A new survey released by Nielsen suggests many American consumers prefer shopping in-store for a multitude of reasons, ranging from safety to reliability.

While shopping online was voted the overall favorite by 59 percent of the respondents polled, they noted there are several instances in which they would rather head to a physical storefront. For example, more than three-quarters (77 percent) said shopping in-store was safer than buying products online. Additionally, 69 percent said it was more reliable and had fewer chances for disruptions, such as shipping information getting jumbled up.

On the flipside, the survey also noted some key areas where customers preferred other shopping channels, and this insight could be used to improve store operations. For example, only 13 percent of respondents said in-store purchasing was the most convenient, compared with 68 percent of online shoppers and 38 percent of mobile buyers.

Another pain point is ease of use – only 20 percent said brick-and-mortar shopping was easy, compared with 68 percent in favor of online shopping and 27 percent for mobile purchasing. Overall, only approximately one-third of respondents (31 percent) agreed that shopping in-store was their favorite way to buy retail goods.

Improving store operations

With the Nielsen survey in mind, it's crucial that brick-and-mortar retailers integrate this data – they need to be looking for ways to bolster their convenience and ease of use.

In terms of convenience, many retailers are deploying new technology such as tablets to help engage shoppers. With a combination of high-value retail software and new mobile devices, sales associates can help customers by answering questions about products, checking inventory of goods and providing them with coupons and other incentives. This provides more value to customers and encourages them to shop – and more importantly, buy – from brick-and-mortar locations.

Ease of use is another area that can be addressed by technology. Merchants shouldn't be afraid of outfitting their stores with technology that enables shoppers to research products, read reviews and run price comparisons. Some retailers, such as Best Buy, are already rolling these solutions out in-store.

Retail Pro is one of these solutions, and can be leveraged as a way to better manage inventory and improve customer satisfaction and loyalty.

This entry was posted by Retail Pro on Thursday, July 5th, 2012 at 10:00 am .

Smartphones have gone mainstream, with recent data from comScore suggesting approximately half of the United States' mobile subscribers – 107 million consumers – own the devices. With the power of the internet firmly in shoppers' hands, they are now using these devices to influence their shopping decisions, a recent report from Deloitte reports.

According to the Deloitte research, approximately 5.1 percent of annual retail store sales – or $159 billion in forecasted 2012 sales – are influenced by smartphones. To come to these conclusions, Deloitte examined in-store sales driven by store-related smartphone activity, ranging from price comparison to mobile application use.

Moreover, this number is expected to grow as time goes by and more customers upgrade from feature phones to smartphones. By 2016, Deloitte expects smartphones to play a part in nearly one-fifth of sales (19 percent), accounting for $689 billion. At the same time, approximately $30 billion will be spent on direct mobile commerce, highlighting the growing utility of smartphones as shopping companions.

"Mobile devices' influence on retail store sales has passed the rate at which consumers purchase through their devices today," said Alison Paul, vice chairman of Deloitte. "Consumers' store-related mobile activities are contributing to – not taking away from – in-store sales, and our research indicates that smartphone shoppers are 14 percent more likely to convert and make a purchase in the store than non-smartphone users."

Mobile application as the key

With more customers using their mobile devices to shop, it's growing increasingly apparent that retailers need to utilize these devices as engagement tools. Merchants shouldn't lose prospective customers because they don't have a mobile presence to interact with them.

As Deloitte notes, 37 percent of customers who use smartphones as shopping companions utilize a third-party mobile shopping application. Additionally, nearly one-third of respondents said they used the mobile app of the brand they were shopping with. While that's a substantial number, it does suggest a number of merchants aren't offering their own mobile devices, which could lead to shoppers finding better prices elsewhere.

Some brands, such as Best Buy, are hoping to improve store operations by installing mobile devices throughout the store and enabling consumers to do their own research. Best Buy will offer price matches if shoppers find an item offered for less money elsewhere.

This entry was posted by Retail Pro on Thursday, July 5th, 2012 at 9:59 am .

As the economy continues to tighten, so too are consumers' wallets and purses. According to a recent report from Empathica, a number of shoppers are spending less money on specialty retail categories – such as apparel – in order to buckle down on key commodities, like food and gasoline.

As many as 58 percent of surveyed respondents said they are cutting spending on clothing and apparel, while 65 percent plan to devote less of their budget to electronics. Of the top 10 retail segments that American consumers plan to spend less money in, four were specialty retail categories. Conversely, nine out of 10 customers send they are spending the same or more on gas, while only 20 percent intend to reduce grocery expenditures.

"The economy as a whole is still on the mend, and although we are starting to see an uptick in the job market, it doesn’t necessarily mean consumers are eager to spend," Gary Edwards, chief customer officer at Empathica, explained. "Uncertainty still remains among consumers with continued caution around spending on nonessentials."

With consumers spending less money, it's crucial that retailers trim the fat on their offerings. Merchants should consider integrating Retail Pro's inventory management solutions as a way to identify which products are still making money for businesses.

This entry was posted by Retail Pro on Wednesday, July 4th, 2012 at 9:13 am .