Credit cards remain king of the payment castle, even on the internet, according to a new survey conducted by WorldPay.

Nearly seven in 10 consumers (69 percent) prefer paying with their credit cards at digital point-of-sale terminals. PayPal and debit cards followed at distant second and third places, coming in at 40 and 37 percent, respectively. Shoppers were allowed to choose more than one type of payment for the survey.

Additionally, the survey found that American consumers spend 23 percent of their disposable income shopping online, further illustrating the importance of ecommerce to any retail operation.

"Among U.S. consumers who had made an online purchase through a mobile device within the three-month period prior to the March survey, 53 percent used a smartphone or tablet to purchase clothes, 46 percent to buy books and 42 percent DVDs or online games," Internet Retailer reports, citing the research.

According to separate data from comScore, ecommerce spending has experienced double-digit increases for the past eight quarters. If retailers don't have an online website, they are likely losing out on some key sales.

This entry was posted by Retail Pro on Tuesday, May 1st, 2012 at 2:09 am .

The supply chain is a crucial part of retail management – an effective supply chain can make the difference between having inventory at the right time or missing out on crucial sales. Michael Noon, the executive vice president and chief operating officer at Yusen Logistics, told the National Retail Federation that now is the perfect time for retailers and their suppliers to hash out new terms for their contracts.

"Both parties need to continue the dialogue to help cover fluctuating costs," Noone explains. "This is especially important when it comes to fuel so that the cost exposure is not borne solely by the carrier. Both parties also need to work together to manage multi-year contracts and discuss rate changes to reflect not only market changes (rates going down) but also cost changes (that usually go up)."

Going forward, Noone expects collaboration and communication to be more important in supplier relationships. New technology will enable third-party suppliers to share information with each other, giving retail merchants more insight into how their inventory is being moved across the world.

Shipping container volume is already up this year so far, which could indicate a boost in confidence among retailers. With more volume, however, comes more complexity, which highlights the importance of having a better supplier relationship.

This entry was posted by Retail Pro on Tuesday, May 1st, 2012 at 2:08 am .

Consumers are increasingly shopping online, which United Parcel Service attributed to the growth of Next-Day air shipments.

The organization increased packages delivered by 4.5 percent during the first quarter of 2012, up from 12.67 million to 13.24 million packages. Next-day air shipments saw particular growth during this time frame, rising from 1.15 million to 1.21 million compared with last year. Meanwhile, deferred air shipments – or packages sent at 2- or 3-day rates – increased 9.9 percent.

"I think it’s just the law of larger numbers," Paula Rosenblum, managing partner at research and advisory firm Retail Systems Research, told Internet Retailer. "If you're shifting to buying online but you’re in a hurry, you’re going to request expedited shipping."

Separate data from comScore has noted double-digit increases in ecommerce spending for the past few years, further highlighting the growth in online shopping among American consumers.

This entry was posted by Retail Pro on Tuesday, May 1st, 2012 at 2:06 am .

Consumer confidence levels are key to a profitable retail sector. When shoppers are optimistic, they tend to loosen their purse strings and spend more money at retail. Conversely, when the economy goes south and they aren't as confident, they frequently scale back spending.

Several retailers based out of the United Kingdom recently commented on the status of consumer confidence in the U.K. They all agree that consumer optimism is low and will continue to remain that way. In order to stay on top, retailers will need to develop new ways of bringing in customers – and that means more than simply offering discounts.

"We always knew this was going to be a bumpy road of slow growth," Mark Price, managing director of Waitrose, told Retail Week. "Retailers need to focus on delivering good value, not just low prices.

"The biggest danger is consumer perception," Theo Paphitis, owner of Boux Avenue, added. "The worry is it will impact consumer confidence which is really borne out of unemployment levels."

Conversely, consumers elsewhere in the world are growing more optimistic. For example, American consumer confidence recently hit a four-year high.

This entry was posted by Retail Pro on Tuesday, May 1st, 2012 at 2:05 am .

Many merchants use Foursquare as a means to drive new customers in-store. Now, the social media site is offering better means for retailers to leverage its massive user base through a new paid advertising platform.

According to sources familiar with the project, Foursquare will enable advertisers to create special deals through a paid-media platform. These deals will show up as users search for them, helping retail merchants raise consumer awareness, AdvertisingAge reports.

While Foursquare didn't comment on the specific paid-media advertising platform, a company spokesperson did say the site is always looking to give brands new ways of engaging customers.

"Over 750,000 businesses use Foursquare to engage with their customers, and we're continually improving our offerings to make the platform even more powerful for them," the company explained. "Our goal is to build scalable self-service tools that enable businesses to draw in new customers and retain and reward their most loyal ones, while also enhancing the foursquare experience for our 20-million-strong community."

Walgreens has been a noted Foursquare user, offering flu shot donations for check-ins as well as discounted merchandise.

This entry was posted by Retail Pro on Sunday, April 29th, 2012 at 2:34 pm .

The National Retail Federation has suggested the Federal Trade Commission tread with care in regards to the still-nascent mobile payment technology solutions. The payment method has only just begun to gain traction and any regulations could stymie further growth of the technology, the retail organization cautions.

Mallory Duncan, NRF senior vice president and general counsel, will be participating in an FTC workshop to further stress this point. She says the FTC shouldn't look at the phone as something to regulate because it acts as a means to make a payment by linking to bank accounts or credit cards, not as a payment medium in and of itself.

"Mobile technology and processes are just beginning to emerge and we won't know which practices the public will like or what methods will provide new benefits until the technology begins to coalesce," Duncan explained. "The government should not impose regulations that would forestall yet-to-be-imagined advances and innovation in order to avoid potential 'harm' based largely on speculation."

Duncan was also quick to note that new technology tends to catch the eye of politicians simply because it has unknown potential. The internet, for example, may have been targeted with stricter regulations if it had come to power in modern days. Public opinion can change, especially as consumers familiarize themselves with new technology, so regulations created ahead of time may in fact not be in the best interest of shoppers.

There are some core issues that need to be addressed as mobile devices become more common as payment tools. For example, Duncan asserts some standard should be set as to precisely what a "mobile payment" constitutes.

Ultimately, she believes mobile payment technology will improve the relationship between retail merchants and consumers, and as such should be allowed to grow.

"Retailers have always wanted to know their customers so they can serve them better and that doesn’t change simply because the method of payment changes," Duncan said. "Mobile might help retailers get to know their customers more like they knew their customers generations ago, and offer more personalized service."

A recent forecast from the Pew Research Center notes that mobile payments are slowly gaining traction in the United States, with the medium expected to be on par with credit cards and cash by 2020.

This entry was posted by Retail Pro on Sunday, April 29th, 2012 at 11:09 am .

Walmart has forever changed how consumers will think about online shopping by becoming the first retailer to offer web consumers a way to pay with cash, RetailingToday reports.

The overwhelming majority of Walmart's point-of-sale transactions are conducted using cash, so the retailer decided to extend that option online. Upon selecting the "pay with cash" option, shoppers will be prompted to print a receipt. They can then bring that receipt into a store within 48 hours and pay with cash at a register. The item can be picked up in-store, shipped to the location or sent to the consumer at home.

As the news source notes, Walmart is the first brand to embrace this payment method, allowing customers without credit cards or other ways to pay online to still shop through the web. Moreover, given the number of customers paying with cash at the retailer, this course of action seems like a no-brainer.

Retailers are always looking for ways to evolve their store processes. Innovative approaches, such as Walmart's online "pay with cash" strategy, seems like an ideal one for its business model and target audience.

This entry was posted by Retail Pro on Friday, April 27th, 2012 at 11:14 am .

Citing data released Tuesday by Statistics Canada, Fox Business reports that Canadian retail sales unexpectedly dove in February – the first time they have done so since July 2011. According to the research, sales volumes shrank 0.2 percent to C$38.91 billion – US$39.26 billion – which was scaled back from the original 0.5 percent decline the organization estimated.

Industry analysts suggest the issue lies with consumer spending, which didn't spur growth as much as many retailers anticipated it would.

"The gain will clearly be driven less by consumer spending than previously suspected, and it also points to downside risk [to the Royal Bank of Canada's retail forecast]," BMO Capital Markets deputy chief economist Douglas Porter said in a report.

Sectors that noted a decline include the automotive industry, food and beverage stores, convenience stores and beer and wine stores. Retail merchants selling building materials and garden equipment, on the other hand, saw improved sales.

When sales are down, merchants should take another look at store operations. By revising policies and procedures, they will be better able to sustain themselves despite fewer sales.

This entry was posted by Retail Pro on Friday, April 27th, 2012 at 11:11 am .

The recession has driven many retailers to reevaluate how they are doing business. Rather than casting a broad net with the hopes of landing a plethora of new customers into their stores, a significant portion of merchants are scaling back and instead focusing their efforts on the customer base they already have. Loyalty programs are one of the most effective strategies for achieving that goal.

A loyalty initiative encourages shoppers who are already familiar with a brand to continue shopping with them instead of jumping to a competitor. By attributing a value, whether points or gift-based, above and beyond the goods purchased within a retailer’s store(s) consumers are encouraged to become a brand loyalist and given a reason to keep shopping with that merchant.

Retail Pro International understands the significance of customer loyalty programs, which is why the Customer Loyalty Module is a pivotal part of the recent release of our software. Retail Pro 9 enables users to set up their very own loyalty programs and reward their best shoppers with in-store discounts, gift items, or other rewards of the retailer’s choosing.

Retail Pro’s loyalty module is built upon our proven “Central” communication methods which allow the retailer to ensure loyalty points are awarded and redeemed in a real-time capacity. This is beneficial for both the merchant and the customer. In the case of the retailer, this information is updated instantaneously, assuring them their customers aren't double dipping on rewards due to server-side lag or other nefarious issues.

Conversely because points are managed in real-time, customers are able to check their point balances whenever they want and receive an accurate numbers from any of the retailer’s store locations. For example, if a customer makes a purchase at one store, the transaction will be relayed to Retail Pro's Central Server. Later that day, if they are at a separate location, they can redeem loyalty points earned earlier because communications take place in real time – there are no delays that would prevent this from happening, which can be an issue with other brand’s loyalty programs.

The Retail Pro 9 Loyalty Program module is a flexible solution as well, giving merchants three different ways to carry out their rewards initiatives: Total Based, Item Based and Gifts. Each can be configured to earn and redeem points or achieve specific milestones to receive gifts.

·         Total-based programs use the total amount of receipts to calculate point values – a customer earns loyalty points and then redeems it to reduce the account. For example, when accruing points, spending $100 could earn 100 points. When the customer wants to redeem these points, the point value could be changed to 10 points equaling $1.

·         Item-based systems work in a similar fashion, except different items are set to have various point values. Not every item has to be a part of the program, which is useful for promoting certain goods. Additionally, different shoppers can have bonus multipliers associated to their member (Gold, Silver or Bronze levels, for instance), which can further enhance the bonus points earned.

·         The gift-based method rewards a consumer with actual merchandise rather than discounts. Instead of points, this program would issue gifts for clearing certain levels. For example, they could earn a free flashlight for signing up and then win additional items for hitting other levels.

A successful loyalty program will maximize retention of the most profitable customers, increase a retailer’s profit-to-consumer ratio, revitalize relationships with existing patrons, help create meaningful connections with new ones, give margins room for growth, improve customer behaviors by rewarding them from shopping and dissuading unprofitable habits, leveraging data collected through programs to improve stock selection and generate word-of-mouth buzz from program participants. Simply put, a loyalty program is an arrow you need in your quiver!

This entry was posted by Retail Pro on Thursday, April 26th, 2012 at 7:35 am .

Retail Pro International has announced a strategic alliance with Retail Smart Guys, a specialty retail consulting and planning advisory company. Dan Jablons, owner and operator of Retail Smart Guys, a long-time Retail Pro® supporter, will be pivotal as Retail Pro International aims to create customer consulting programs to foster a new pedigree of retailer.

“Leveraging our Retail Pro retail management software and services with Retail Smart Guys' planning guidance will go a long way to ensure the success of any merchant in our ecosystem,” commented Mike Bishop, the Vice President of Business Development at Retail Pro International. By utilizing the services and products of both Retail Pro and Retail Smart Guys, merchants will be better informed about their businesses and markets while gaining access to crucial data and retail management tools that will drive growth, profitability and long-term success for their business.

Dan Jablons is an experienced retail advisor, with a client list spanning dozens of high-profile specialty retailers. Jablons offers his clients expertise in pivotal retail functions, including accurate forecasting, marketing, sales, technology and social networking.

Retail Pro International is currently working to introduce new services that will capitalize on this newly forged alliance. ”We are thrilled to be partnering with such a performance-driven organization in the retail space and believe this collaboration will provide the retailers with the resources and expertise they truly need to succeed. It's the ultimate win-win-win situation for all involved,” added Dan Jablons, the owner of Retail Smart Guys.

This entry was posted by Retail Pro on Wednesday, April 25th, 2012 at 11:09 am .