M-commerce was set to be the next online channel through which ecommerce outlets could attract more attention for their retail merchandising. Yet, new research shows the channel may still be lagging.

Research released by Shoppercentric reveals that despite efforts to improve multichannel store operations, few shoppers are turning to mobile devices to accomplish their shopping needs, suggesting some retailers may need to revisit the drawing board when it comes to synthesizing purchasing avenues.

The study found that in the past month, only 13 percent of consumers have made a purchase via their smartphones and only 7 percent have done so on a tablet. Furthermore, the study suggests that this could be a result of consumers feeling that the channel lacks security – only 29 percent said they felt secure shopping on a mobile device.

"They are feeling pretty comfortable with online now, as they know when they pay for things they will get security questions coming through," Danielle Pinnington, managing director at Shoppercentric, told PCWorld. "But they are not seeing this level of security when shopping on smartphones using mobile applications."

This entry was posted by Retail Pro on Wednesday, February 29th, 2012 at 4:44 am .

Retail merchandising isn't just about how products are marketed and advertised. Often, customer service and experience can be equally important factors in sales.

One surprising way businesses are able to motivate their employees is by developing and upholding high customer service standards that really put the consumer first. A recent article in Business 2 Community discusses the results of a recent study it undertook, and how the ways in which a company treats its customers can communicate the expectations it has for its employees.

When employees believe that every customer is valued by a company, they will work harder to create an environment in which shoppers feel like they're receiving a personalized experience, the website explains.

"People take pride in working for a company that does right by its customers and value being part of a company that allows them to build lasting relationships with loyal customers and clients," said one respondent, according to the study.

Creating a high level of customer service also has the benefit of spurring stores' reputations, which can ultimately attract new shoppers.

This entry was posted by Retail Pro on Wednesday, February 29th, 2012 at 4:41 am .

Americans will spend almost 50 percent more shopping online by 2016, a new report from Forrester Research suggests.

In 2011, Americans dropped $202 billion shopping online and this year, that number is projected to reach $226 billion. By 2016, online expenditures will grow 45 percent to $327 billion – a compound annual growth rate of approximately 10.1 percent over the five-year period. Eventually, online retail will account for 9 percent of total retail sales, a marked improvement over the 7 percent spent in 2012.

Forrester came to this conclusion by analyzing the monthly figures provided by the U.S. Census Department. Unlike the government organization, however, the researcher does not include sales of cars and trucks, gasoline, groceries and restaurant meals.

The big driver of sales won't be retail brands opening up new websites – many big retail merchants already have one – but the improvement of homepages and the services offered through them. A number of consumers have expressed dissatisfaction with the current online shopping experience and want more features from retailers, especially when it comes to high-end sellers.

"This is particularly true of categories such as apparel and jewelry, which have integrated rich selling tools such as zoom, color swatching and configurators, as well as office supply stores, which have broader payment options (e.g., small business purchase orders online) and subscription plans for their buyers," Forrester analyst Sucharita Mulpuru writes.

The number of shoppers is also growing steadily, thanks to improved accessibility from specific channels, such as smartphones and tablets. Nearly 200 million Americans will shop online in 2016, up 15 percent from the 167 million who do so today. Perhaps more importantly, though, is that the shoppers will spend considerably more online – the average ecommerce budget is slated to grow from the current $1,207 to $1,738 by 2016.

There is a perceived value to shopping on the web, which is another key driver of new sales. "Online shoppers believe that promotions available online are even better than what they could find elsewhere," the research added. This is why many Americans will prefer shopping online to brick-and-mortar retail stores.

Over the 2011 holiday shopping period, more than $50 billion was spent on ecommerce, according to separate data from comScore.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 10:27 am .

With all the major credit card companies developing some means of making point-of-sale payments through mobile devices, JPMorgan Chase is the latest financial institution to announce its plans. The banking giant announced it has teamed up with GoPago, a mobile wallet company with big plans for expansion.

"Our partnership with Chase provides us with access to many millions of businesses out there," GoPago founder and CEO Leo Rocco told Internet Retailer.

To use GoPago, retailers must have an application installed on a tablet device or other point-of-sale system. Consumers can then open a different app and buy specific products through the program. To date, there are 50 merchants in Mountain View, California, that use GoPago, but more than 250 retailers in San Francisco will be added on March 1.

Participating merchants don't need to pay a startup fee, but will have a 5 percent fee cut from each transaction as a fee.

Half of smartphone owners are already using their handsets as a shopping companion, according to Nielsen, so it's only natural to turn the devices into mobile wallets as well.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 9:18 am .

Once a successful retail merchant has a few brick-and-mortar locations operating, it only makes sense to expand to the world of ecommerce. However, as several small-time New York retailers have found, the transition isn't as easy as it may seem.

For example, Herb Philipson is the owner of a seven-store casual apparel retail chain. Philipson has enjoyed success with his seven shops, but shifting to online has proved more complex than he originally thought. He just launched an online website, but has found it challenging to fill orders with the much-larger audience of the web.

"The worst thing is to go online and try to buy whatever and get an order for 12 and you have three in stock," Philipson told the Utica Observer Dispatch. "You want vendors who have a lot of stock that we can replenish."

However, Philipson has reason to keep trying – Amanda Nicholson, Syracuse University director of retail practice, expects apparel sales online to hit $40 billion.

Ecommerce has been growing significantly, even during the economic recession. During the two-month holiday period alone, online sales hit $35 billion, according to data from comScore.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 9:17 am .

Retailers are going digital to compete with their online counterparts. However, store operations aren't moving to the internet – it's all about in-store help.

A Toronto-based department store, the Bay, has introduced its first digital employee. "Anna," as the company has named the 5-foot 8-inch (in high heels) digital worker, greets consumers from a glass tower in the center of the store, the Globe and Mail reports.

The introduction of Anna is what the news source characterizes as part of a trend on behalf of brick-and-mortar retailers to use high-tech programs and developments to cut costs and boost revenue.

"As merchants compete against deep-pocketed global titans, they're being forced to look for digital and automated alternatives to buttress operations. Retailers such as clothier Gap Inc. and office supplies specialist Staples are already staffing their warehouses with thousands of robots," the Globe and Mail writes.

However, retailers don't need to create a digital workforce to improve operations. Consider using your retail management system to set up your floor staff with mobile sales tools, introduce interactive kiosks through your stores, or launch a social space where consumers can access store information or discounts.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 7:11 am .

Last summer, online and mail-order video company Netflix angered customers with new pricing and management plans, serving as an example for retailers' store operations.

In July, the company announced it would be raising prices by nearly 60 percent for users who access videos both online and through mail, Bloomberg notes. Additionally, the company was attempting to force customers who wished to receive DVDs via mail only to sign up with its new brand Qwikster.

As a result, the company lost 800,000 customers in the third quarter of last year. Reflecting on the damage the plan was having on its reputation and revenue, Netflix backed away from the plan. In the fourth quarter, it reversed its fortunes by adding 610,000 customers, according to Bloomberg.

"We are the first to admit we did have some missteps," Steve Swasey, a spokesperson for Netflix, said in an interview with the news source. "It's ours to gain back." Part of this new plan is allowing consumers to sign up for the $7.99 per month DVD-only service.

Retailers looking to avoid the fate of Netflix may want to consider their consumers in their plans, possibly through soliciting their desires and concerns before any changes are made.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 6:09 am .

Retailers are continuously looking for new ways to gather consumer information to improve store operations and boost revenues. While loyalty programs and email surveys persist as popular methods in doing so, new technology could help retailers even more.

California-based company Passbox has developed a game that retailers can use in-store to leverage consumers' increasing interactions with mobile and social networks, CSP Daily News reports.

The game is available to consumers at checkout via an Android-based touchscreen. While the consumer waits for their payment and purchase to be processed, they are directed to the five-to-eight second game. However, to play they must enter their phone number.

"By building a fun, game-like experience in the store that connects to your mobile phone and your social communities, you can inspire unprecedented levels of brand loyalty, driving incremental visits and sales growth," Mark Strauch, CEO of Passbox, told CSP Daily News.

Another way retailers are using mobile and social channels to collect information on their consumers is through the creation of apps, which customers can download and purchase.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 6:07 am .

While ecommerce has proved an effective and successful channel for companies' retail merchandising operations, not all online mediums have paid out.

Social networking giant Facebook offers retailers and companies access to its nearly 1 billion members. However, even these numbers couldn't help the network's attempt at social retail, "F-commerce," catch on.

According to a recent article from Bloomberg, major retailers such as Gap, JCPenney and Nordstrom have opened and closed shopping operations on the website within the past year, despite speculation that the site would soon rival Amazon and PayPal for business.

"There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop," Sucharita Mulpuru, an analyst at Forrester Research, told the source. "But it was like trying to sell stuff to people while they're hanging out with their friends at the bar."

However, in an article for ZDNet, Emil Protalinski suggests that it may not be Facebook's fault. Retailers, he writes, need to learn to use the site correctly by building a service or feature that users will want to share with their friends.

This entry was posted by Retail Pro on Tuesday, February 28th, 2012 at 5:48 am .

"The customer comes first" is a slogan constantly thrown around the retail industry. Whether merchants agree or not, the importance of catering to the needs of shoppers is paramount to success.

Dell recently found how this can translate into marketing, Internet Retailer reports. The computer manufacturer rolled out a pair of retail apps late last year. To promote the launch of these apps, Dell wanted to send an email news blast out. Because the campaign would be relevant to both traditional desktop users and smartphone owners, the brand designed two emails: one for at-home readers and one for on-the-go subscribers.

The mobile email was specifically made for the smaller resolution of smartphones and also had bigger buttons to encourage users to download the app. The results speak for themselves – app downloads increased five times the day the mobile email was sent out.

Whether retail merchants are tailoring their marketing campaigns or developing new services, they need to think of the intended audience. By designing an experience specifically around the customer, retail brands are showing that they understand the needs and wants of their shoppers.

This entry was posted by Retail Pro on Monday, February 27th, 2012 at 10:38 am .