CVS recently announced that it will stop selling tobacco products by October. Despite some backlash on social media networks, retail customer trends indicate that the pharmacy's decision might have been as strategic as it was health-conscious. The store's effort to stay ahead of changing consumer demand and re-brand itself as a comprehensive health center exemplifies how retail insights can lend a competitive edge.

"Ending the sale of cigarettes and tobacco products at CVS/pharmacy is the right thing for us to do for our customers and our company to help people on their path to better health," said Larry Merlo, president and CEO of CVS Caremark. "Put simply, the sale of tobacco products is inconsistent with our purpose."

While a desire to promote healthier habits may be at the core of CVS's decision, the move was also strategic. The number of regular smokers in the United States has fallen below 20 percent of the population, due in large part to the success of ad campaigns and studies linking smoking to cancer, FoxBusiness noted. By pulling out of a declining market, CVS can focus its resources elsewhere and appears as a leader in the industry. Much of the positive feedback has recognized CVS's commitment to health, according to the news source, an association CVS has fostered by expanding its services to include immunizations, clinic services and consultations with pharmacists. 

This entry was posted by Retail Pro on Friday, February 7th, 2014 at 6:28 am .

Ecommerce software enables merchants to offer their products to a wider consumer base and expand the options available to shoppers. The diverse advancements in retail technology demonstrate that the growth of ecommerce also inspires innovative strategies for brick-and-mortar store operations, helping the stores to be more appealing and convenient for customers. Therefore, bolstering online marketing opportunities can stimulate economic growth and foster improvements across all retail channels.

In an effort to bring some of these benefits to developing economies, the World Bank private investment group International Finance Corporation (IFC) announced that it will invest up to 25 million Euros in two online retailers that operate in Russia, Kazakhstan and Latin America. Rocket Internet, an online ventures company, launched Dafiti (which does business in Latin America) and Lamoda (which sells predominantly in Russia and Kazakhstan) in 2011.

"Internet companies are speeding up modernization of the retail supply chain in developing countries, which promotes consumer spending—a key component of economic growth," said Atul Mehta, IFC global director for manufacturing, agribusiness, and services. "Their investments in logistics, information technology and marketing are rapidly generating employment, especially for women and young people."

According to East-West Digital News, Dafiti is Latin America's foremost online fashion group and Lamoda is Russia's leading online shoe retailer. 

This entry was posted by Retail Pro on Friday, February 7th, 2014 at 4:45 am .

Retail business intelligence is all the rage, particularly as big data analytics becomes more available. But not all retailers can pour a significant chunk of money into collecting massive amounts of information and hiring analytical experts. Nonetheless, small and mid-sized businesses (SMB​s) can take advantage of personalized marketing ideas to better engage their customers and drive sales.

Retailers can use ecommerce software to offer customers additional shopping opportunities. It's helpful to keep Web and mobile resources consistent, but the sites don't have to be complicated. SMBs should focus on implementing one strategy at a time, Small Business Computing recommended, such as using shoppers' IP addresses to present products that are tailored to current weather conditions. Forbes magazine identified a number of enhancements retailers can add to their websites to create personalized presentations. For example, merchants can use recommendation engines to offer their shoppers suggestions based on their search history.

Overall, there are small-scale ways that SMB​s can take advantage of the information collected by retail technology to improve their marketing strategies. With the growing emphasis on personalization across the retail industry, these current trends give SMB​s a chance to shine where they already excel. As Forbes magazine observed, smaller retailers often thrive on building personal relationships with their customers. Merchants can capitalize on these skills by translating them to their marketing efforts.

This entry was posted by Retail Pro on Thursday, February 6th, 2014 at 9:23 am .

During his 2014 State of the Union address on January 28, President Obama focused on the middle class. He described new opportunities for entrepreneurs, initiatives for better education and advances in universal healthcare. However, retail customer trends point to a different shift: a shrinking, struggling middle class left behind by the elite.

According to The New York Times, businesses that traditionally cater to the middle class, such as discount clothing stores and mid-line restaurants, are struggling as high-end stores profit from the increasing wealth of the upper 20 percent. Economists Steven Fazzari, of Washington University in St. Louis, and Barry Cynamon, of the Federal Reserve Bank of St. Louis, explained that the economic recovery is being driven by the upper class, the source added.

In fact, recent Pew research found that fewer Americans consider themselves middle class, identifying instead as lower class. From 2008, the percentage of people who identify as lower class rose from 25 to 40 percent, the survey revealed, and middle class declined from 53 to 44 percent.

For retailers, these trends may indicate a need to reconsider their store operations and marketing strategies. Growing economic disparity may make it difficult for businesses to cater to both the elite and more economical consumers, The New York Times said.

This entry was posted by Retail Pro on Thursday, February 6th, 2014 at 4:50 am .

In the United Kingdom, merchants are offering customers new options to make ecommerce more convenient. The "click-and-collect" system means that consumers buy items online and then pick them up from specified locations instead of choosing home delivery. Retail customer trends point to the popularity of the service, and merchants are transforming this concept to provide shoppers with added conveniences, such as:

• Faster delivery. With click-and-collect services, shoppers don't have to wait as long to receive their orders. Instead, patrons can reserve items online and then pick them up from the store or from designated areas, The Drum explained. Other merchants provide fast item delivery by avoiding the "final mile" and leaving packages at central pickup locations.
• Subway pickup. The Transport for London (TfL) public transportation system has formed partnerships with retailer industry leaders to offer pickup locations from Underground station car parks. After initial success with pickup lockers for several retailers, the transit system recently announced agreements with additional merchants. The service gives customers a convenient way to pick up their purchases on their commute, drawing business for the retailers.
• Try on items first. At a shopping center in Westfield, customers pick up their online click-and-collect purchases and try them on before taking them home, The Telegraph reported. Instead of having to transport items back and forth if they don't fit, consumers can make decisions before leaving the pickup center.

This entry was posted by Retail Pro on Thursday, February 6th, 2014 at 4:49 am .

As millennials come of age, they’re an increasingly important demographic for the retail industry.

Although analysts use different starting points for the generation, most people generally regard millennials as the group currently ranging from late teens to early thirties.

According to Venkatesh Bala, chief economist and director of the Economic Center of Excellence of the Cambridge Group, in an article for Quartz, this group encompasses up to 80 million people in the U.S., spends around $600 billion annually and could account for $1.4 trillion in commerce by 2020.

Therefore, merchants have a vested interest in understanding this demographic and its retail customer trends.

Information drives millennials

Much has been said about the technology habits of this age group, inspiring retailers to focus on mobile and ecommerce strategies.

However, the real takeaway is that millennials want more information, are good at finding it and use it when making decisions.

Millennials are resourceful at price-checking and comparison shopping, Bala emphasized – they know how to use sites like Hukkster.com and have more options at their fingertips than ever before.

For that reason, it’s important for merchants to consider their online presence.

With or without ecommerce software, retailers can take advantage of the Web by making sure millennials can find their information.

Staying on top of competitive pricing is crucial for marketing to this generation, which tends to be thrifty.

Growing up in a recession has proven difficult for the age group as they transition to adulthood.

Pew revealed that millennials are underemployed and many are living at home with their parents.

CNBC remarked that millennials are still catching up from the slow start that defined their entrance into the job market.

Consequently, it’s important for retailers to understand more specifically what these consumers need and how they’re balancing their budgets.

In-store experiences and engagement

According to research by Merchant Warehouse and Retail Pro International, millennials prefer to buy certain products in stores, including apparel, footwear, home goods, furniture and jewelry.

They might still check information online before making a purchase, but they want the physical store experience for these items.

Some merchants are catering their in-store experience to these younger consumers through strategies like “pop-up” retail stores or modern retail technology, Bala explained.

He noted that Nordstrom has crafted a more edgy, youthful image by using mobile POS systems and offering brands that are relevant to millennials.

Overall, millennials want convenience, options and engagement.

Omnichannel marketing is a useful approach because it engages younger consumers and leaves them with both consistency and options.

This entry was posted by Retail Pro on Wednesday, February 5th, 2014 at 9:58 am .

With smartphone and tablet use growing globally, merchants are planning to refine their mobile presence in 2014 to stay competitive. The drive to be visible and engage consumers across devices is a core component of multichannel store operations. As part of an effort to improve the customer experience, retailers are prioritizing mobile for the coming year.

According to the 2014 Shop.org/Forrester Research Inc. State of Retailing Online survey, more than half of retailers intend to improve their mobile presence, focusing on responsive design, mobile site optimization and tablet redesign. In 2013, smartphone revenue grew 113 percent and tablet revenue grew 86 percent from the previous year, the survey found. This was driven both by the increasing prevalence of mobile device ownership – especially among wealthier demographics – as well as the greater availability of mobile apps and coupons, Business Insider noted. 

Forty-six percent of retailers plan to redesign their websites, according to the survey, and site experience is instrumental to customer conversion. Mobile improvements are part of a general trend toward increasing personalization and convenience for shoppers. These strategies are made possible by advances in retail customer intelligence, which merchants can incorporate into designs for their mobile websites and apps. 

This entry was posted by Retail Pro on Wednesday, February 5th, 2014 at 5:39 am .

In the retail industry, customer relations are key. Merchants reach out to consumers in a variety of ways, including personalized email campaigns, social media, customized offers and engaging in-store experiences. Unfortunately, retailers can't please everyone, and even the best stores sometimes make customer service mistakes. In an era where consumers can rapidly spread discontent through online platforms, it's important to make an effort to repair relationships with dissatisfied customers.

When shoppers voice their dissatisfaction on social media networks, it's best to respond rather than let the comment simmer. The Connection, a contact center blog, suggested retailers respond as soon as possible, keeping a positive tone and maintaining professionalism. If possible, the source said, it's helpful to move the conversation to private channels, but merchants shouldn't delete the original comment because that looks like they're trying to cover up mistakes. Additionally, despite improvements in the way retail management software integrates channels, it's best to respond to customers in the same way they offered feedback, according to Social Barrel.

Regulating online feedback is important for retailers as the multichannel approach becomes more central. According to The Guardian, it's more essential than ever for merchants to build brand loyalty by engaging with customers.

This entry was posted by Retail Pro on Tuesday, February 4th, 2014 at 10:23 am .

The U.S. economy rose by 3.2 percent in the fourth quarter of 2013, pointing to optimistic prospects for the retail industry in the coming year. Consumer spending increased by 3.3 percent, marking the greatest growth in three years, Bloomberg News reported. Consequently, some retailers are experiencing greater demand and better business conditions.

The growth comes after a period of challenges for the economy. Not only were markets abroad impacted by the European economic crisis, but U.S. government spending cuts, fiscal battles and a government shutdown caused setbacks. USA Today noted that the last half of 2013 was the best economic stretch since the end of 2011. Economists are hopeful that the country has finally overcome some of the challenges that occurred over the past few years.

"For a period that included a government shutdown, it was a pretty successful quarter," said Sam Coffin, an economist at UBS Securities LLC in Stamford, Connecticut, according to Bloomberg. "The momentum carries over into this year. The worst of the fiscal battles is behind us. We'll see the economy picking up."

Some businesses are already seeing greater demand, the news source said, and retail customer trends indicate that Americans are spending more confidently thanks to job growth and property value improvements.

This entry was posted by Retail Pro on Monday, February 3rd, 2014 at 12:13 pm .

From retail customer intelligence to exciting in-store technology, advancements in merchant resources have provided new opportunities for fashion marketing. Industry experts are seeking ways to optimize their sales through enhanced retail technology.

At the Digital-Life-Design Conference, which took place January 19-21 in Munich, Germany, technology and business experts converged to discuss the latest innovations and inspirations in their fields. A panel of fashion leaders offered insights on how omnichannel marketing is transforming the industry, according to Business of Fashion (BoF).

Panelists included Imran Amed, of BoF; Paula Reed, fashion director of Harvey Nichols; Chris Kyvetos, founder of Sneakerboy; and Ulric Jerome, chief operating officer of Matchesfashion.com. The experts described efforts to integrate ecommerce and offline platforms in order to provide more consistent, engaging experiences for shoppers, the source said.

At an earlier fashion retail technology forum held by GILT, industry leaders similarly point to the ways innovative marketing tools are aiding fashion businesses. For example, Stylitics CEO Rohan Deuskar explained his company's digital closet concept, as reported by Decoded Fashion. It compiles consumer data through an app that shoppers use to create looks with friends. The service then sends trending insights to retailers, which is particularly valuable in the world of fashion.

This entry was posted by Retail Pro on Monday, February 3rd, 2014 at 8:43 am .