Social Media Still Not a Key Driver of Retail Revenues

Posted on June 7, 2013 by bermanevansretail
Despite the popularity of social media by many retailers and their customers, social media are still not driving much in the way of retail revenues.
As reported by Multichannel Merchant, Monetate conducted a 2013 research project on social commerce trends. Here are two key findings:
(1) “Social media are lagging as a direct traffic source to E-commerce Web sites and for online purchases, despite brand investment. Social media represented just 1.55 percent of all E-commerce traffic, way behind search (31.43 percent) and trailing E-mail (2.82 percent). And social media traffic numbers were down from Q1, 2012, when they were 2.36 percent.”
(2) “Tablets and smartphones are grabbing more device share of E-commerce traffic. Tablets and smartphones were 21.02 percent of traffic, compared to just 2 percent two years ago. Tablets (10.58 percent) led smartphones (10.44 percent) in E-commerce traffic. Despite the rapidly increasing traffic being driven to sites through tablets and smartphones, only 14 percent of companies optimize for tablet users and only 13 percent optimize for smartphone (according to Econsultancy). “
Click the image to read more.

 

Posted in Online Retailing, Part 2: Ownership, Strategy Mix, Online, Nontraditional, Part 3: Targeting Customers and Gathering Information, Part 7: Communicating with the Customer, Social Media and Retailing | Tagged , , , , , , , , , , | Leave a comment

The U.S. Shopping Center Is Still Alive and Kicking

Posted on June 6, 2013 by bermanevansretail
Even though online shopping has grown dramatically in recent years, store-based purchases still dominate the retail landscape. Retail professionals know this; many others are surprised that online purchases still represent just a fraction of retail sales.
According to research giant Nielsen:
“Despite the boom in E-commerce, U.S. consumers do most of their shopping at physical stores. But in order to attract and captivate consumers, shopping centers have become much more than just places to buy things — they’re social centers, places for entertainment, and employment hubs. In its recent Brick by Brick: The State of the Shopping Center report, Nielsen examines the trends affecting the size and shape of the shopping center industry, as well as some of the shifting consumer factors affecting the strategic direction of this powerful retail sector.”
“As the U.S. population has diversified, the lines have blurred between shopping, entertainment, and community. This blending of experiences has created an opportunity for retail to strengthen social ties within communities looking for communal experiences. Lifestyle centers, a newer entrant to the shopping mix, have met this opportunity head on, as they blend traditional retail tenants with upscale leisure uses that offer shoppers a place to buy as well as an experience and a place to gather.”
Click the Nielsen chart to read more.

 

Posted in Part 3: Targeting Customers and Gathering Information, Part 4: Store Location Planning, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , , , , , , , , , , , , | Leave a comment

Wal-Mart’s Green Dot Program for Shelf Stocking

Posted on June 5, 2013 by bermanevansretail
As we have reported earlier, Wal-Mart has experienced some difficulties in keeping its store shelves fully stocked. To combat this problem, the retailer recently implemented a “green dot” program.
Renee Dudley, reporting for Bloomberg News, notes that: “The effort Wal-Mart  is expending to fix its stocking issues is notable for a chain that became the world’s largest retailer in part by gaining mastery over its supply chain and logistics. ‘It’s like Tiffany’s falling down on quality,’ said Wallace Hopp, associate dean of faculty and research at the Stephen M. Ross School of Business at the University of Michigan. ‘It’s the core of their essence. If you can’t manage inventory in retail, then you can’t manage retail.'”
Click the image to see a video clip on the green dot program.

Posted in Part 3: Targeting Customers and Gathering Information, Part 5: Managing a Retail Business, Part 6: Merchandise Management and Pricing, Technology in Retailing | Tagged , , , , , , , , | Leave a comment