Retail merchants are increasingly going digital, offering mobile applications, internet stores and other amenities to consumers who would rather shop online than in-store. The same is true of digital circulars, which can be made available to consumers online or through mobile devices.

That said, traditional print circulars aren't going extinct anytime soon, Retailing Today claims. There are a number of technical barriers, such as having to actually own a tablet or smartphone, that will ensure print circulars retain some use.

"Because of print circulars' overall ease of use for consumers, it still reigns as an effective marketing tool for retailers," the news source adds. "Poring through inserts in the Sunday paper and in-store to find coupons and deals are still part of the shopping ritual ingrained into the consumer psyche over generations."

However, Millennial shoppers – 20- to 30-something-year-olds that are typically on the cutting-edge of new technology – may be more inclined to use digital circulars. In that regard, it's paramount that retailers think of their target audience when creating circulars.

A recent report from Market Track highlights the continued use of print circulars, with distribution and page count up in April.

This entry was posted by Retail Pro on Friday, May 25th, 2012 at 9:45 am .

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.

This entry was posted by Retail Pro on Friday, May 25th, 2012 at 7:32 am .

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.

This entry was posted by Retail Pro on Thursday, May 24th, 2012 at 9:47 am .

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.

This entry was posted by Retail Pro on Wednesday, May 23rd, 2012 at 10:29 am .

The government is looking to extend more benefits and protections to consumers using prepaid cards at retail point-of-sale (POS) terminals, a payment type the Huffington Post dubs a "Wild West" compared to other means.

The Consumer Financial Protection Bureau (CFPB) recently met to take action in creating user protections for prepaid cards, making these payment types more consumer friendly, like checking accounts.

"Right now prepaid cards have far fewer regulatory protections than bank accounts or debit or credit cards," Richard Cordray, the director of the CFPB, said in a prepared statement. "That's why we are [making rules] to promote safety and transparency in this emerging market."

Corday and the rest of the bureau are hoping the public weighs in on the matter so better regulations and protections can be crafted for consumers.

Prepaid cards are riddled with a number of unfair practices, despite consumers dropping increasingly large amounts on these cards. Over the years, critics of the payment type have accused the industry for the lack of consistent fees, especially when they are levied on cards after a certain amount of time. The lack of any protections for lost or stolen cards has also been brought up as being consumer-unfriendly.

This entry was posted by Retail Pro on Wednesday, May 23rd, 2012 at 10:28 am .

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.

This entry was posted by Retail Pro on Wednesday, May 23rd, 2012 at 9:04 am .

Retailers are using a variety of means to reach out to new and existing customers to boost business, improve loyalty and hone their retail merchandising strategies.

For example, California retailers have begun increasing their number of bilingual employees to keep up with customers whose first language is not English, the Contra Costa Times reports.

Companies such as Safeway, Home Depot, Sears, Kmart and a variety of local chains and stores are seeking bilingual candidates in the interview process. Those retailers that run more technically oriented stores such as hardware or home improvement stories find bilingual employees exceptionally helpful.

"A lot of retailers are very much focused on providing a diverse workforce for diverse customers that are coming into their stores. They recognize that a lot of people that come into their stores don't always speak the language," Jackie Fernandez, retail partner with Deloitte's Los Angeles practice, told the paper.

Retailers aren't the only sectors seeking bilingual employees. Local, regional and federal governments as well as political campaigns are also seeking people who speak more than one language to better connect with their target audiences and visitors.

This entry was posted by Retail Pro on Wednesday, May 23rd, 2012 at 9:00 am .

Consumers are increasingly shopping online, with ecommerce spending jumping 17 percent in the first quarter of 2012, according to comScore data. Retailers are responding to this increased pressure by changing the way many shoppers think of the traditional retail experience.

For example, Reuters reports that Macy's is now offering customers a virtual concierge service that can make beauty product recommendations. The brand is also updating its flagship location in Manhattan, investing $400 million into renovations.

"The customer is changing dramatically and is wide open to new ways of shopping," Macy's chief executive Terry Lundgren told Reuters last month at a conference in Tucson, Arizona.

Consulting firm Kurt Salmon was quick to add that the retail experience will get smaller, but it will also offer new experiences that leverage cutting-edge technology and other services, much like what Macy's is doing with its virtual concierge.

Other retailers are planning different initiatives. For example, PetSmart will offer overnight dog accommodations at stores, while handbag maker Coach is adding men's sections to more stores this year.

This entry was posted by Retail Pro on Tuesday, May 22nd, 2012 at 9:44 am .

A report released on Tuesday by the U.S. Commerce Department suggests that retail sales continue to grow as consumers grow more confident in the economic recovery, employment and their own financial standings.

Overall, sales were up by 0.1 percent, following a 0.7 percent gain in March. While April marked the smallest rise of the year thus far, this still bodes well for the retail sector, which continues to make a fast recovery from the economic recession that continues to grip many other industries.

Key retail segments included furniture and electronics, with big-ticket items generating a significant increase in retail sales. Meanwhile, Americans also spent more money at bars and restaurants, which is typically a sign of a recovering economy.

Mild winter weather and an early Easter are two of the biggest factors for the slow sales growth in April, experts suggest. Many consumers did their spring shopping in February because of warm temperatures, while Easter fell on April 8th, meaning many consumers did their shopping in March during the weeks leading up to the holiday.

This entry was posted by Retail Pro on Tuesday, May 22nd, 2012 at 9:39 am .

The eBay-owned PayPal has established itself as a forerunner in the field of online payment systems, with other competitors such as Google Checkout still establishing themselves in the sector. While they may not be as popular an option as simply paying with credit cards, online payment services still account for a significant amount of ecommerce activity.

According to a recent Forrester Research report, that figure will continue to grow, albeit marginally. As of 2012, approximately one-fifth of online retail sales are conducted through services such as PayPal. By 2016, that number will climb 3 percent to 23 percent, with online payment services accounting for $110 billion by then.

For PayPal and its rivals, though, the bulk of growth won't happen through traditional ecommerce platforms. Rather, Forrester expects many of these companies to realign focus for mobile devices, such as smartphones, where they can have a larger impact on a still-developing payment landscape. Whereas PayPal is beneficial on a retail website, the company is aiming to become a necessity for mobile shoppers.

Retail merchants regularly see an increase of no more than 10 percent after adding alternative payment methods – such as PayPal – to their ecommerce websites. Therefore, the often prioritize other features, such as new social elements, that may have a bigger impact on their bottom line. However, if PayPal can establish itself as a mobile payments powerhouse, it may see more universal adoption. 

"With growing mobile commerce though, adding alternative payment options for smartphones and tablets may prove more worthwhile for retailers than adding them to web sites. Sixty-five percent of experts believe most consumers will trust and almost fully rely on mobile devices for paying in stores and over the Internet by 2020," Internet Retailer adds, citing data from a separate study conducted by the Pew Internet Project.

Mobile reach

PayPal is positioning itself as a meaningful mobile payments solution as well. For example, PayPal Mobile Express Checkout enables users to bypass laborious form-filling and quickly purchase their goods – a key feature for reaching on-the-go shoppers.

Separate data from comScore notes that more than 100 million Americans have smartphones, many of whom browse the web or use apps. For both retail merchants and payment providers, this growing audience will be pivotal to the success of any mobile commerce initiatives.

This entry was posted by Retail Pro on Tuesday, May 22nd, 2012 at 9:38 am .