Retailers are increasingly using new technology to protect profits and improve store operations. Over the past few years, new innovations in shrink reduction, point-of-sale (POS) payments and customer engagement have changed how many merchants run their stores, Retailing Today reports.

How technology is impacting retail

Loss prevention technology has traditionally been the primary solution merchants have used in the past. Security cameras, alarms, anti-theft tags – these solutions help ensure companies don't lose stock to criminals, which would force them to raise prices for their honest customers. As the news source notes, loss prevention and shrinkage is a $100 billion dollar issue that retailers have tried to address with a variety of technologies.

However, many merchants are using other technologies now as well. For example, American consumers have become obsessed with the prospect of the personalized shopping experience. They want specific items that are tailored to their needs. This extends beyond products as well – Americans are taking to social media as a way to get answers to their problems.

"Customer relationships are shifting towards a one-to-one model instead of a one-to-many approach that was used in the past," the news source explains. "The emergence of trends such as omnichannel retailing gives retailers the opportunity to address the shift and offer their merchandise to shoppers at the moment of interest, and sell at the moment of decision, but it also raises shoppers' expectations with a promise of availability."

Finally, new technology is being applied to the point of sale as well. Contactless credit and debit cards are one such solution that expedite the payment process, meaning consumers are spending less time waiting in line and more time enjoying the shopping experience. Additionally, mobile technologies – both in terms of accepting mobile devices as a payment source and using smartphones and tablets as a point-of-sale terminal – have also created new opportunities for businesses.

Retailers need to consider these new technologies as a way to not only keep pace with but also gain a leg up on their competitors.

"Retailers of all sizes need to capture, interpret, report and intelligently respond to real-time operational data from stores, employees, inventory and shoppers," Retailing Today added. "That data can be collected from existing store systems as well as a number of sensor devices – from traditional EAS tools and newer RFID-enabled solutions, to traffic counting and video analytics."

This entry was posted by Retail Pro on Monday, June 18th, 2012 at 10:16 am .

Americans continue to rely on credit and debit cards as primary means of paying for goods at point-of-sale (POS) terminals, according to a new report from First Data Corporation.

In May, overall card spending at retail locations was up 7 percent year-over-year, which is a higher growth rate than the previous month (5.7 percent). Consumers spent at healthy rates during the beginning of the month (which is when Mother's Day occurred), but spending continued to be strong throughout the course of the month. The number of overall transactions held steady at 5.9 percent.

"Overall May card spending growth was healthy, but there is reason for caution. During the month we saw consumers reducing the growth of their discretionary spending at retail merchants and increasingly resorting to credit for necessities," said Silvio Tavares, senior vice president and division manager of First Data Global Information and Analytics Solutions.

Father's Day falls on June 17 this year, and early reports from the National Retail Federation expect the holiday to cause another boost in spending. Although Americans don't typically spend as much on dad as they do on mom, the NRF study suggests the gap is slowly closing – good news for retailers.

This entry was posted by Retail Pro on Friday, June 15th, 2012 at 10:29 am .

Ecommerce is slowly picking up steam in Europe, with research firms noting consistent double-digit growth each year. Francois Momboisse, a veteran of the retail industry and the newly elected chairman of Ecommerce Europe, hopes to stimulate interest in the shopping medium even further by eliminating some of the common concerns consumers in the region have with ecommerce.

While growth has generally been consistent, Momboisse has noted there is a tremendous disparity within European member states. For example, in Scandanavia, the United Kingdom and the Netherlands, high-speed broadband is common and consumers are more apt to shop online. However, in Bulgaria and Romania, internet penetration is very low, which makes ecommerce a foreign concept to many consumers.

As the recently elected chairman of Ecommerce Europe, Momboisse aims to promote ecommerce and help the growing sector prosper. The key to doing this addressing key issues that prevent online shopping from taking hold in the region, such as underdeveloped internet infrastructure, the use of cookies to track customer behavior and the general promotion of ecommerce as a means of purchasing products and services.

"My objective will be to provide members of Parliament and the Commission with a better understanding of our job, and of consumers' expectations and needs," Momboisse explained to Internet Retailer. "We believe all areas have a strong potential for growth, based on what happens everywhere in the world. The regions that are still underdeveloped need broadband penetration growth, and we want to see that this is an objective that the Commission has clearly identified."

Always room to grow

Even regions where ecommerce has been established – such as the U.K. – can be benefited by the exploration of new markets. For example, several grocery stores in the country have begun selling groceries online. Tesco, one of these chains, is expected to bring in upward of $5.26 billion from its ecommerce offerings.

According to a separate report from Ecommerce Europe, only approximately half of Europeans shop online. In some areas, as few 6 percent of residents actively buy goods online, which suggests ecommerce has a long way to go before it's universal.

"There are enormous opportunities, but there are many barriers that still inhibit the growth of ecommerce," Wijnand Jongen, chairman of the executive committee of Ecommerce Europe, told Internet Retailer. "This is because of the differences in legislation, payments and logistic systems in Europe. What we strive for is more uniformity, so we are not restrained by European digital boundaries." 

This entry was posted by Retail Pro on Friday, June 15th, 2012 at 10:27 am .

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.

This entry was posted by Retail Pro on Friday, June 15th, 2012 at 1:27 am .

An increasing number of companies are globalizing their retail operations, making their first stop the European Union.

A recent ecommerce summit held in Barcelona, Spain, offered retailers a number of tips to take into consideration before entering the EU marketplace, especially in light of recent economic troubles in the region, Fibre2Fashion reports.

Regardless, retailers will want to get familiar with country-specific consumer laws, understand how their point-of-sale systems may need to be tailored and learn what the specific customs-related rules are, the source notes.

Each nation also has specific preferences and points of value when it comes to shopping as well. For example, French Ecommerce Association director Marc Lolivier explained that for his nation, language is key. The French, he explained, are unlikely to struggle with a website in another language or poorly translated French.

While U.S. retailers will need to get familiar with their target nation's laws, they may also want to seek expert advice for handling U.S. taxes and regulations.

This entry was posted by Retail Pro on Friday, June 15th, 2012 at 1:25 am .

Pixmania, a European retailer, is bucking the trend. While most physical retailers are downsizing to focus on ecommerce, Pixmania is growing its presence by opening 20 brick-and-mortar stores in major European cities. Paris, Marseille and Barcelona are some of the big locations Pixmania is expanding to, Internet Retailer reports.

The France-based retailer says its network of websites attracts upward of 30 million unique visitors a month, with annual sales topping $1.1 billion annually. By opening brick-and-mortar stores, the brand hopes to target the 80 percent of European shoppers who are still interested in buying Pixmania products (which range from electronics to furniture) at physical locations.

"Today the web accounts for 5 percent of total European furniture sales, 10 percent of television sales and 20 percent of camera sales," Jean-Emile Rosenblum, co-founder and vice president of the company, explained. To capture more sales, the company needed a physical presence.

"To satisfy consumers' purchasing habits, you have to look further than internet and seriously think about opening stores," he added.

Whether merchants are expanding to the web or brick-and-mortar, it's crucial to look at their audience. Retailers should always do what makes the most sense and enables them to provide a better experience to their customers. For Pixmania, he notes that a lot of their products have strong cross-channel opportunities, which drove the company to consider a physical expansion.

For example, a lot of customers conduct research on the web when buying big-ticket items – such as furniture. Rosenblum estimates between 20 percent and 80 percent of customers take to the web to research products. However, before they commit to making a large purchase, many will want to go in-store and actually look at and touch the product. By offering both online and in-store experiences, Pixmania keeps the shopper engaged with their brand the whole way through.

"In our 1,076-square-foot store in Barcelona customers can see a thousand of our products," Rosenblum says. "Online, they have access to 1.4 million products, and can also order a product that was not available in store and have it delivered either at home or at the store."

According to separate data from Ecommerce Europe, approximately half of EU country members shop online. However, the number varies wildly from upward of 70 percent in some regions to less than 10 percent in others. This highlights the need for both brick-and-mortar and ecommerce operations for retailers in Europe.

This entry was posted by Retail Pro on Thursday, June 14th, 2012 at 10:35 am .

Social media is still a relatively young acquisition channel – some merchants swear by it, while others prefer more traditional means such as circulars or television ads. Yet a new report published by RJMetrics suggests there may at least some merit to using sites such as Facebook to win over new customers.

According to the data, a consumer acquired through Facebook advertising spends 30 percent more at that merchant over his or her lifetime than one gained through Groupon. They also spend 8 percent more than a consumer acquired via an advertisement placed on search engines such as Google.

The report, however, did not note conversion metrics, so while a customer acquired through Facebook may spend more than one referred by Groupon or Google, the boost in ROI may not cover the difference in conversion rates. When merchants are planning their marketing initiatives, they need to take that into account to avoid budgeting issues.

Facebook frequently unrolls new ways for brands to engage consumers, which may further improve conversion rates for merchants in the future. Most recently, the social site announced Promoted Posts.

This entry was posted by Retail Pro on Thursday, June 14th, 2012 at 10:34 am .

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.

This entry was posted by Retail Pro on Thursday, June 14th, 2012 at 10:31 am .

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.

This entry was posted by Retail Pro on Wednesday, June 13th, 2012 at 10:11 am .

Many retail merchants carefully think through the entire purchasing experience, from shopping to checkout, but few pay as much attention to return policies. That could be detrimental, particularly to online shoppers, who value simple return processes.

According to a new report by comScore and UPS, 63 percent of online shoppers consult a retailer's return policy before even considering a purchase. A poorly detailed policy could hinder sales, with approximately half saying they would shop more at a merchant with a forgiving return policy and many would also recommend that outlet to others.

"While free shipping has tended to dominate the discussion regarding what provides satisfaction to online shoppers, the study shows there are several other factors critical to a positive online shopping experience," notes Susan Kleinman, comScore director. "Retailers need a holistic understanding of these drivers if they hope to stimulate sales while maintaining healthy margins in this competitive retail environment."

One strategy big-box retailers have turned to is enabling shoppers to return goods in-store, thereby reducing the time between when refunds are issued.

This entry was posted by Retail Pro on Tuesday, June 12th, 2012 at 9:47 am .