While many specialty retail brands typically operate in the physical world, executives are acknowledging the benefits of the virtual arena. 

Once trust has been established between a customer and a company, it's likely the patron will begin purchasing products from that merchant online. Why? He or she has physically tested the retailer's items several times before, so the consumer already knows what to expect as far as quality is concerned. 

Progressive thinking 
According to Fortune, Neiman Marcus Group, a merchant specializing in luxury apparel, recently announced the acquisition of Munich-based ecommerce website Mytheresa.com, which was founded by Christoph and Susanne Botschen in conjunction with Acton Capital Partners. 

Neiman Marcus already brings specialty clothing to well-to-do consumers living in 120 countries, generating nearly $5 billion in sales every year. The enterprise is looking to expand its reach without having to set up additional brick-and-mortar stores. Instead, it hopes to leverage ecommerce as a means to provide luxury clothing to those who have yet to encounter the Neiman Marcus brand. 

"This acquisition is an important component of our long-range strategy to more broadly serve affluent customers around the world. Mytheresa has a very nice foothold in Europe and a developing foothold in Asia," said Mytheresa.com CEO Karen Katz. 

What needs to be in place 
While Neiman Marcus is likely already familiar with the steps needed to procure ecommerce software, other specialty retail outlets that have yet to penetrate the digital realm likely don't know where to start. Forbes contributors Grent Gleeson and Jeff Oxford detailed how to set up a website, from choosing a solutions provider to designing the interface. 

1. Exceed expectations: There are plenty of platform providers out there that are PCI DSS compliant, but do their architectures surpass the standards defined by the Payment Card Industry? Look for solution developers that go the extra mile regarding security. Look for systems that employ tokenization, black box authentication and endpoint encryption.
2. Make it smart: What defines a smart-looking website? One that's easy to navigate and projects the character of the brand. Specialty retail ecommerce stores should appear sleek, refined and constructed by knowledgeable professionals. As a general rule of thumb, finding a specific item should take no longer than 30 seconds. 

In addition, the checkout process shouldn't be ignored. If it takes more than two minutes for a person to finalize a purchase online, then revisit the steps and start over. 

This entry was posted by Retail Pro on Friday, September 19th, 2014 at 11:48 am .

Although ecommerce is a popular topic of discussion among merchandising professionals, they would do well not to ignore one of their greatest sources of revenue: brick-and-mortar stores. 

According to Street Fight Magazine contributor Anne Stephen, online sales account for a mere 10 percent of the industry's total retail transactions, with in-store purchases making up the difference. 

With this in mind, no outlet is the same. Each one provides a unique customer experience that pertains to the store's brand, how the products are presented and the way in which salespeople interact with shoppers. The question is, how do retailers measure the success of their in-store experience models? 

Start with the KPIs
​In-store beacons that measure movement and POS software can both contribute to a merchant's key performance indicators. Stephen maintained that the ultimate goal is to understand how business decisions affect customer perceptions and then adjust delivery methods accordingly. 

How should shopper behavior be measured? From the moment a person enters a store, the way they carry themselves should be acknowledged. Customer A may know exactly what she wants and walk at a faster pace in an effort to get to the section of the store she's looking for. In contrast, Customer B may display signs of browsing: slow pacing, wandering looks and kino tests (touching). 

What are you selling? 
Once measurements are established, store managers must observe the way their sales staff contributes to the customer experience. Is there a blanket solution applicable to every specialty retail outlet? Absolutely not. 

While one merchant may specialize in mobile devices, another may provide consumers with designer apparel. These two mediums inspire different mindsets among shoppers. Listed below are the best approaches for each retailer to take:

• Smartphones: Describe what the prospective buyer can do with the technology and detail each device's limitations. Be sure to acknowledge that people aren't necessarily tech-iliterate.
• Designer clothing: Don't describe the feel of the clothing – that's what dressing rooms are for. Instead, focus on the inspiration of the design and the emotions the appearance is supposed to evoke. 

Not as good as they hoped 
On a more general note, retailers of every ilk need to pay more attention to their patrons. According to Commerce Tuned, a survey of 2,000 people residing in the United Kingdom showed 38 percent of respondents will leave a store if representatives fail to return to them in three minutes. 

There will be times when an assistant needs to look up certain information. In order to prevent abandonment from occurring, it would do store managers well to provide their employees with tablets to help them find specific intelligence. 

This entry was posted by Retail Pro on Thursday, September 18th, 2014 at 12:00 pm .

Although many merchants have struggled to liquidate excess stock, consistent sales improvements are mitigating the issue.

When merchants took to their retail inventory management solutions before last year's holiday season, they realized they may have ordered more materials than they needed. The post-recessionary economy has given birth to a breed of shoppers that exercise caution, especially during times when spending is at its highest.

"Out of stock" becoming regular?
However, this may not be the case when December arrives. Forbes noted a report conducted by Credit Suisse, which monitored apparel inventory levels from September 2013 to August of this year. The study discovered stock growth is expected to be tempered due to more frequent shopper activity.

"As a result, we believe that a nine-month period of excessive markdown activity and margin degradation for [the retail industry] is coming to an end," maintained Credit Suisse, as quoted by the source.

Credit Suisse discovered apparel merchandising is expected to improve across the board. Even Walmart, a company that has struggled to sell clothing and footwear for quite some time, is in the best position to advance in this area. Specialty brands such as shoe sellers and athletic apparel distributors are predicted to encounter a favorable environment. Merchants catering to the needs of teens are already seeing sales increases

What are the challenges?
It's possible some retailers may acknowledge the intelligence presented by Credit Suisse and disregard it as a particularly optimistic take on the situation. While this may true, it's important for merchants to leverage data analysis programs and correlate them with Credit Suisse's conclusions. This will prevent them from ordering too much or too little inventory once the holiday season unravels.

Setting a good example
Automation and centralization are also key for apparel merchants to oversee stock liquidation and avoid shortages. Retail Info Systems News reported Talbots replaced its legacy inventory management and customer intelligence systems with a revamped software solution that tracks every item that flows through the distribution channel.

The system allows Talbots to process every transaction, whether online or in-store, in real time, which in turn produces a holistic view for decision-makers to capitalize on. For example, if the merchandiser discovers a store in Atlantic City, New Jersey is selling more long-sleeved shirts than an outlet in Newark, Talbot​s' logistics chain can redirect more of these items to the Atlantic City store.

It's this kind of flexibility merchants need, especially during these volatile economic times.

This entry was posted by Retail Pro on Wednesday, September 17th, 2014 at 1:02 pm .

While much attention has been given to Generation Y and today's millennials, those participating in the retail industry are beginning to wonder what Generation Z will mean for the sector.

Who are they? 
Forbes categorized Generation Z as those who are age 17 and under, or anyone born after 1997. The magazine maintained that while GenYers have a more positive, optimistic view of the world around them, GenZers are the realists of the current age. 

This attitude makes sense, as these soon-to-be consumers grew up in a post 9-11 world in which discussions of ubiquitous surveillance and seemingly endless war are both a part of normal life. They've been hardened by frequent reports of school shootings and gun violence. 

The economics of GenZers
Not to mention, many GenZers belong to families that were profoundly impacted by the onset of the Great Recession, suggesting a preference for financial security and the need to "buckle down" during hard times. What it also means is that GenZers are cognizant of just how volatile the economy can be. 

Forbes noted this environment has prompted this generation to be much more careful with how they spend capital. They've witnessed parents lose jobs and older siblings entrench themselves in debt, and they want to avoid this situation. The source noted 57 percent of GenZers between the ages 13 and 17 asserted they would rather save money than immediately spend it, and many maintained they'll weigh the costs and benefits of attending college. 

What it means for retail 
Retail merchandising is subjected to a class of consumers who research items before they buy them. While millennials subscribe to this behavior, making sure an investment is worth it is practically ingrained in the subconsciousness of a GenZer. 

In this regard, something interesting is happening. Business Insider noted GenZers that shop for goods often spend more money online than they do in-store. Why is that? There are a couple of likely possibilities: 

• GenZers are suspicious of salespeople on the floor who are paid to sell them products and therefore conclude that their opinions on products are biased. 
• GenZers know they can return items even if they're purchased online. 
• Having been born literally during the Internet boom, they know how to find thorough information regarding items as quickly as possible, whether that be through forums, blogs, their friends, etc. 

Above all, it must be noted this particular age group will avoid being financially cheated at all costs. The mentality is this: "We're not going to make the same mistakes our predecessors did."

This entry was posted by Retail Pro on Wednesday, September 17th, 2014 at 11:49 am .

It seems today's shoppers are always searching for a bargain. While many choose to visit discount retailers, some consumers have associated such enterprises with low-quality items.

While this may not always be true, the perception still persists, which has caused people to leverage coupons. While some are cut out of a magazine or booklet, others are delivered through email. 

Why bother with coupons?
At face value, it doesn't make sense for a merchant to offer shoppers 20 percent savings on a pair of shoes or 15 percent off a book about the Democratic Republic of the Congo. However, retail customer intelligence tools have shown that providing people with coupons improves customer retention enormously. 

Businesses aren't necessarily distributing these coupons at random – they're providing discounts to people who have purchased goods from their outlets and ecommerce stores in the past. Experienced merchants are cognizant of the fact that it costs more money to aggregate new business than it does to retain old.

An omnichannel angle 
Integrated Solutions for Retailers noted a study conducted by Forrester Research, which is comprised of thorough surveys with 500 consumers who used digital coupons over the past three months. The organization made the following discoveries:

• More than half (59 percent) of participants noted that digital coupons and coupon codes were likely to have a profound influence on their purchasing decisions
• The majority of respondents redeemed digital coupon codes within three days of receiving them
• One-third of consumers surveyed used coupons immediately after receipt
• More consumers are using smartphones and tablets to redeem digital coupons
• Just under three-quarters (68 percent) of participants maintained that coupons greatly influence their loyalty

Whether online or in-store, coupons are ubiquitous. Due to the fact that mobile involvement is growing more prevalent, retailers need to ensure their POS software deployments can register coupons sent from smartphones and tablets. Scanning codes at an in-store checkout kiosk should be another convenience offered to consumers. 

Where is coupon use the highest? 
Apparently, Pennsylvanians, particularly those living in Pittsburgh, take advantage of coupons quite a bit. Pittsburgh Business Times noted the city ranked seventh on the Forrester survey of nationwide cities' digital coupon use. It also noted leveraging such discounts increased 15 percent from last year. 

Other metropolitan areas that ranked in the top 10 slots were New York City, Boston and Baltimore.

The better merchants accommodate bargain-hunters, the more loyal their customers will be. 

This entry was posted by Retail Pro on Tuesday, September 16th, 2014 at 12:56 pm .

When a customer chooses to disregard a discount apparel store and visit a specialty retail store instead, they expect a certain level of expertise.

For example, upon entering an Under Armour store, the patron intends to learn more about that specific brand. What puts Under Armour over Nike? How is does it's product design differ from Adidas? These are just a couple of questions to which shoppers are seeking answers. 

The competition is tight 
As there are numerous apparel manufacturers specializing in athletic clothing, outdoor gear, seasonal fashion and so on, companies need to find ways to assert their dominance over the market. Of course, this is easier said than done. 

Benzinga acknowledged how Urban Outfitters, Free People and Anthropologie Group are constantly aiming to gain a piece of the apparel pie. These three groups cater primarily to the late-millennial generation, appealing to a culture that focuses on subtle social rebellion and acceptance of diversity. 

They're not ignorant of ecommerce software, either. The source noted Urban Outfitters's net income for Q2 2014 stood at $67.51 million – $8.85 million less than the same period last year. Apparently, the specialty retail brand set aside capital for revamping its marketing strategy and improving its website. 

What approach should in-store representatives make? 
When a person enters an Apple store, they likely already know they want to purchase a product manufactured by the company. He or she could have visited a Best Buy to purchase an iPhone or iPad, but the individual wanted a different experience, one that reflects the attitude of the brand. 

Retail Customer Experience contributor Doug Fleener maintained that four kinds of specialty retail representatives exist. He outlined their character traits and sales approaches, which are listed below:

• The Gawker: A person hears a customer talking, but the information is going in one ear and out the other. He or she doesn't possess comprehensive knowledge of the company's products or service offerings.
• The Stalker: Someone who follows customers as they walk around a store in the hope one of them will have a question regarding an item. The person fails to engage shoppers proactively. 
• The Talker: A representative who is friendly and can inform people about each of the brand's products and provide expert opinion. However, this person typically focuses too much on making a sale and forgets to create a meaningful connection.
• The Rockers: Those who establish empathy between themselves and the customer. They assess the persons needs and desires and find an item that best suits them. 

While personality is essential, specialty retailers must also provide employees with technology that allows them to complete sales on the spot. 

This entry was posted by Retail Pro on Monday, September 15th, 2014 at 5:07 am .

It's not just hype: Mobile devices are becoming the No. 1 channel for retail customer engagement. 

Smartphone use has increased over the years, presenting merchandising professionals with a fantastic opportunity to redefine the patron experience. This level of service surpasses point of sale and goes into customer service and marketing. 

Mobile has the majority 
Retailers are cognizant of the fact people are visiting their websites in a variety of different ways, obligating them to program user interfaces to fit different screen sizes. The question is: Just how small do these websites have to be and what does that mean for navigability? 

Retail Customer Experience referenced Branding Brand's Mobile Commerce Index study, which discovered the majority of consumers (51 percent) accessed merchant websites on smartphones and tablets, while 49 percent visited such Web pages via laptops and desktops. Branding Brand Co-founder and CEO Chris Mason noted one particular device manufacturer boasts favoritism among mobile device users. 

"Not only is the majority of online visits coming from smartphones and tablets, they are occurring on Apple devices," said Mason, as quoted by the source. "Based on past adoption trends of Apple's newly released operating systems, you can fully expect the majority of holiday traffic to come from users running iOS 8, and it hasn't even launched yet."

What does this mean for the customer experience? 
With the ascension of mobile commerce in the retail industry, a new level of customer service will need to be brought to the table. When a customer visits a website, it's not uncommon to see a "Speak to a live representative" option on the side panel. What happens when a person wants to benefit from this option on a 4.7-inch screen? There are two options, both of which involve the use of co-browsing. 

1. A customer can navigate the website while simultaneously texting the representative.
2. A patron can call a service employee and set the device to speakerphone. From there, he or she can browse the Web page while the worker provides vocal instructions.

As texting and browsing at the same time can be quite tedious, the latter option appears the most attractive. This function directly relates to the development of mobile retail applications, which according to Belk Senior Vice President of Ecommerce and Omnichannel Digital Ivy Chin, is becoming an integral part of the customer experience. He told Media Post that synchronization with beacons and in-store implementations are going to be quite prevalent as well. 

This entry was posted by Retail Pro on Wednesday, September 10th, 2014 at 6:14 am .

With the rise of ecommerce and connected consumers, it has become crucial that brick and mortar stores be equipped with similar tools that have helped ecommerce stores easily measure their success. Our partner Swarm recently announced the Swarm Portal foot traffic counter, the newest addition to its portfolio of smart devices. Portal measures customer traffic entering your store, delivering the data instantly to the Swarm mobile app and web dashboard. Designed with the small to medium business owner in mind, Portal works right out of the box and syncs over Bluetooth to deliver insightful data on any device, anytime.

For Retail Pro customers, Portal automatically syncs your point-of-sale data to Swarm’s app. This means you’ll be able to monitor not only foot traffic, but also conversion rates. With Swarm and Retail Pro, you’ll also be able to set traffic or revenue goals and monitor results in real time.

Here are three ways measuring foot traffic can help grow your business:

1) Understand if you’re not getting all the sales you should be by comparing sales results to the traffic opportunity in your store

2) Help you schedule staff better by knowing exactly when your store is full of customers and when it might be slow

3) Know if your training, merchandising and advertising efforts are making a difference by watching their impact in real-time

Portal is available from participating Retail Pro Business Partners.

This entry was posted by Retail Pro on Wednesday, June 11th, 2014 at 11:58 am .

Consumers may make impulse purchases on a regular basis, but when it comes to desiring a specific item, they're likely to conduct research on the product, as well as the merchandisers that offer it for sale. The latest retail customer trends point toward a need for information, and shoppers are they're willing to obtain it from wherever they can find it.

Looking for convenience
According to Business News Daily, more people are beginning to research goods online and visit brick-and-mortar stores to purchase them, a process known as Webrooming. The source referenced a survey conducted by Merchant Warehouse, which discovered that nearly 75 percent of respondents said they engage in Webrooming because they don't want to pay for shipping or wait for delivery. Over one-third (37 percent) of study participants claimed they enjoyed the option of returning the item in-store, rather than having to ship it back.

Searching for opinions, the experience
Business News Daily acknowledged the consumer desire for a more intimate shopping experience. Sure, they can read product reviews and look at interactive 3D displays of items they're researching, but having a conversation with a sales representative or fellow customer in-store can convey so much more information. For example, a person looking for a laptop may look up different brands online and then go to a specialty retail store offering a particular model to seek expert advice.

Placing confidence in the order
At times, the inability to physically interact with goods can be a deal-breaker. There are some consumers who simply can't be assuaged by a collection of rave reviews posted on a website or detailed product description posted directly below the picture. Roopa Unnikrishnan, a contributor to Quartz, noted that 68 percent of online carts are abandoned, with 25 percent of customers saying they did so because navigating the website was too complicated.

Essentially, purchasing items from a brick-and-mortar store is much more simple. Unnikrishnan wrote that these centers offer solace to those who don't feel like perusing a website for half an hour looking for a specific product. Yet, she recognized the importance of differentiating one store from another. Specialty retailers – such as the hypothetical tech boutique mentioned in the third paragraph – can capitalize on such a strategy by bringing their own specific look and feel to the atmosphere. Taking time to visit an outlet is seen as a social experience, so taking the time to make it unique can work to a shop's advantage. 

This entry was posted by Retail Pro on Tuesday, June 10th, 2014 at 11:34 am .

Retail management software has enabled merchandisers to scrutinize customer trends, support brick-and-mortar and ecommerce operations and numerous other functions related to the industry. Now, the intelligence collected by these technical programs is going to be amassed and shared between competing online and tangible stores to combat cybercrime. 

Cyberattacks sustained by Target, Neiman Marcus and other companies have stirred concern among organizations that have made a business out of selling commodities to consumers. When a retailer fails to adequately protect sensitive customer information, the masses flock to their competitors in search of similar service and better protection. 

Forming an alliance
According to Dark Reading, The Retail Industry Leaders Association responded to this issue by launching the Retail Cyber Intelligence Sharing Center (R-CISC), an information sharing and scrutiny platform supported by Target and other major merchants that both have and have not encountered cybersecurity issues. The National Retail Federation, which announced its plans to establish such a support system in May, did not partake in the endeavor, but is working to develop a similar retail business intelligence community of its own. 

"For a number of years, NRF has been working with all of the stakeholders to ensure that the broad spectrum of our industry … have access to the tools and information they need to combat and stop these crimes," said NRF Senior Vice President for Communications and Public Affairs Bill Thorne, as quoted by the source. 

A solution to an ongoing problem
Tire Business noted that R-CISC operations will focus on identifying threats in real-time and distributing reports with its members to reduce the risk of cyberattacks. In addition, the association intends to educate merchandisers on best practices for sharing data and combating cybercriminals who target POS software and ecommerce operations. Academics and universities are expected to provide the R-CISC with research and collaborate with retailers to utilize emerging technologies that can subdue digital deviancy. 

The public sector isn't going to be exempt from these processes either. Phyllis Schneck, deputy undersecretary for Cyber Security and Communications at Homeland Security's National Protector and Program Directorate, noted that protecting consumer financial information is imperative to maintaining the confidentiality and robustness of every sector's cyber protections. 

"We have a sharp increase in the number of malicious actors attempting to access personal information or compromise the systems we all rely on," she said in a statement, as quoted by Tire Business. 

This level of collaboration is a positive step forward, and retailers should strongly consider contributing to the R-CISC's efforts. 

This entry was posted by Retail Pro on Monday, June 9th, 2014 at 6:04 am .