Retailers personalize holiday shopping for millennials, baby boomers

August 15, 2017 in Latest News

Stores are already gearing up for the busy holiday retail reason, when retailers bring in more than 40 percent of their revenue for the year.

Brands have already started preparing for the impact that the changing industry landscape will have on the holiday season — focusing on convenience and speed to make holiday shopping a good experience for consumers. About 76 percent of U.S. consumers expect theirs interactions with a brand to be easy, while 60 percent of shoppers ages 45 and under say they look online first, then buy products in brick-and-mortar stores.

Locking into these trends will help retailers address the landscape shift and keep sales up this holiday season, according to the report. The federation is encouraging retailers to produce quality over quantity, reward employees for relationship-building actions with customers, and use data insights to prioritize customers’ most enjoyable shopping experiences.

“Especially during peak holiday times, optimize in-store and online shopping experiences,” the report said. “Customers should be able to quickly navigate your brand, get through checkout and get on their way.”

Holiday retail sales during November and December 2016 increased 4 percent over 2015 to $658.3 billion, exceeding NRF’s forecast of $655.8 billion. The number includes $122.9 billion in non-store sales, which were up 12.6 percent over the year before. Consumers showed more confidence during the holiday season, and December was up 0.2 percent seasonally adjusted from November and 3.2 percent unadjusted year-over-year.

Stores are specifically targeting different age demographics, and found these are what consumers want out of their shopping experiences:

1. MILLENNIALS: Price and value are the most important factores for this group, and more than 71 percent of 25 to 34 year olds use their smartphone to look up product information while shopping in stores. “They also recognize the importance of both functional and emotional aspects of the shopping experience; both are represented in where and how they decide to shop,” the report found.

2. BABY BOOMERS: About 20 percent of all baby boomers want personalized offers through their mobile device, according to the report. Boomers place value on the functional attributes when they decide whether to buy an item or not. Boomers want to shop at retailers that give them: reliability, product quality, value for the money they’ve spent and a store that allows them to stay on budget.

3. Gen X: Generation X, those born roughly between the early 1960s to the early 1980s, are described as the “on-the-go generation,” and they want to see clear value for what they buy this holiday season. They are most likely to buy products that will make their busy lives even easier. About 40 percent of Gen Xers say a fast checkout is a key factor in where they’ll shop this holiday season.

Two Key Factors Impacting Retail Real Estate In 2017

January 2, 2017 in Latest News

holiday shoppingRetail can be impacted by any number of factors. The economy and consumer confidence are chief among the influencers. But there are other forces at work that don’t qualify as X factors yet are reshaping the industry.

GlobeSt.com caught up with Tim Blum, executive vice president and managing director of HSA Commercial Real Estate‘s retail division, to get some insights in part two of this exclusive interview. You can still read part one Which Trade Areas Will Win Big Retailers in 2017?

GlobeSt.com: E-commerce is an ongoing issue we discuss. How will this continue to impact retail real estate in 2017?

Blum: E-commerce is likely to continue to have a dramatic impact for those merchants whose products are easily bought and sold online. The challenge for retailers is to define a unique value proposition—whether through exceptional customer service, expansive product selection, exciting promotions or enjoyable experiences—that will attract customers on a regular basis.

Similarly, developers are paying close attention to the rise of e-commerce and merchandising their projects with tenants that are best-positioned to outlast the immediate impact of online shopping. For example, our recent Calhoun Crossing shopping center development in Brookfield, Wisconsin, features three anchor tenants: Fresh Thyme Farmers Market, Total Wine & More and Designer Shoe Warehouse.

Those anchor tenants were all specifically chosen because of their capacity to attract customers to the project regularly. Fresh Thyme offers a tremendous selection of produce that changes daily based on seasonal supply and freshness; the well-trained staff at Total Wine & More can impress and educate customers with their extensive knowledge of wine and spirits; and Designer Shoe Warehouse has constant promotions on the latest footwear styles. Those are the types of brick-and-mortar shopping experiences that cannot be replicated online.

GlobeSt.com: How will demographic shifts impact retail real estate industry in 2017? And what are the implications?

Blum: Retailers and developers alike must be mindful of how to cater to the growing number of millennials in this country. By definition, millennials are more technologically adept than previous generations and, therefore, have an unlimited number of ways to shop online through either desktop or mobile devices. Therefore, retailers and developers must cultivate authentic experiences that encourage brick-and-mortar shopping.

For developers, this could mean forgoing national chain restaurants in favor of local establishments that make the dining options of a particular shopping center or mixed-use project more unique. At The Mayfair Collection, for example, HSA Commercial partnered with many of the best-in-class local restaurateurs to create a regional dining destination that appeals to both shoppers and potential future residents of the 69-acre mixed-use development.

 

Source:  GlobeSt.

Top Trends Impacting The Retail Sector

May 26, 2015 in Latest News

top trendsVarious emerging trends and technologies will affect retailers and customer experience this year, according to Vend.

In 2014, Vend says more merchants were venturing into omnichannel retailing, trying in-store marketing solutions such as beacons to add to the shopping experience.

In 2015, Vend anticipates stores to double down on these strategies and continue to find ways to bridge the gap between offline and digital channels.

Platforms such as social media will play a larger role in the shopping experience, and retailers will use social to influence shoppers and also sell direct, Vend says.

Here are some of the top retail trends, as predicted by Vend:

1.  Boomers and millennials will continue to heavily influence retail

Baby boomers and millennials will be the two most prominent generations to the retail sector, and in order to capitalise on these markets, merchants must cater to their specific needs.

For instance, merchants wanting to reach the GenY segment will have to invest in mobile as they are the largest group of smartphone owners, says Vend.

2. Social networks will serve as shopping platforms

Over the last several years, brands have used social media to market their products, talk to customers, and even make merchandising decisions. Vend says.

In the coming months, Vend anticipates merchants to add ‘selling’ to the list of things they can do on social sites, with the likes of Facebook and Twitter adopting ‘buy’ buttons.

3. Brands will double down on Corporate Social Responsibility

Consumers of today are more drawn to retailers that invest in Corporate Social Responsibility (CSR), says Vend.

A survey by Cone Communications and Echo Research found 87% of global consumers factor in CSR into their purchase decisions.

In 2015, Vend expects more merchants to launch ethical and good deed initiatives, in order to make customers feel good knowing they’re contributing to a worthwhile cause.

4. Loyalty-wise, the points-for-purchases model will no longer be effective

Enriching and personalising the shopping journey will no longer be limited to tailored product recommendations and offers, according to Vend.

Consumers name relevant discounts and personalised offers as the top benefits of loyalty programmes.

Forward-thinking retailers will find additional ways to make each customer’s experience unique and memorable.

Vend predicts one of the areas that they’ll focus on is customer loyalty.

5. Retailers will adopt and experiment with technology

Merchants will adopt and/or experiment with tech innovations and figure out how they can use them to improve the shopping experience.

Specific technologies retailers will adopt and experiment with includes: POS technology, beacons, wearables, augmented reality and 3D printing.

6. Data will be more accessible and powerful

Next year, Vend expects the number of SMBs using big data and analytics to grow.

In turn, retailers will realise that they need to rely on data in order to get to know their customers and provide customised shopping experiences.

They will make use of solutions that make data analytics accessible and affordable for small and medium retailers, says Vend.

Furthermore, vendors will continue to develop and refine their solutions so they can provide the most accurate and insightful data in the fastest and most convenient ways possible.

7.  Companies will find better ways to manage risk and protect customers

In the past couple of years, there have been a number of significant data breaches in the retail sector.

In 2015, risk mitigation and data security will be among retailers’ top priorities, says vend.

Vend also expects merchants and solutions providers to come up with better ways to protect customer data.

8. More retailers will take control of their value chain and improve order fulfilment

If retailers truly want to provide compelling shopper experiences, they have to take more control of how their products are manufactured, marketed, and distributed, Vend cites.

The most successful retailers will be the ones that have ‘complete control of their value chain, from creation all the way to consumption’.

9. More ecommerce sites will set up shop offline

In 2014, a number of ecommerce-first businesses expanded into the offline realm, according to Vend, and this trend will continue in 2015, with ecommerce sites realising they need to set up physical shops if they want to gain significant market share.

Additionally, the need to provide seamless online to in-store experiences continues to grow, and successfully pulling this off requires both a digital and physical presence.

Ecommerce sites setting up shop offline is, on one hand, good news for the brick-and-mortar realm because it validates the need for physical retail. However, this also means competition will increase, and traditional brick-and-mortar retailers must step up their game in order to win, says Vend.

10. Retailers that localise their product mix and store formats will win

Localisation will be more important than ever – merchants that customise their stores and merchandise according the needs of their local communities will find great success in 2015, says Vend.

It’s important to note however, that neighborhood-specific merchandise is only one part of a good local strategy. In addition to inventory, retailers will also need to tailor each of their store formats based on their respective communities and locations, says Vend.

11. Mobile will continue to grow in all directions

Mobile will show no signs of slowing down next year and smartphones and tablets will play bigger roles in the shopping journey.

Vend expects to see more loyalty apps, mobile services and mobile payment solutions in particular.

12.  Stores with omnichannel strategies will continue to thrive.

As expected, retailers embracing multiple channels to serve customers will be some of the most successful ones in 2015, says Vend.

Omnichannel retailing has begun to pay off for a lot of companies, and many others will follow suit, using multiple channels to serve customers.

Bottom Line: It’s all about the customer experience

“[We’ve made] some pretty bold and diverse predictions, but if we really think about it, every single one of them boils down to one thing: improving the customer experience.

“Keep this in mind whenever you’re pondering which direction to take your business.

“Always ask yourself if your efforts are truly making shopping faster, safer, and more enjoyable for your customers.

“Stick with that strategy, and you’ll be just fine in the future,” says Vend.

 

Source:  MassRetailer