MARKETING/SOCIAL MEDIA

Five trends that point to a new era for retail

BY Marianne Wilson

Stores that double as classrooms, sensory-rich environments and a rental versus a buy retail model. These are three of the five trends that shopping center developer Westfield believes will shape the future of retailing.

The trends are highlighted in a new report from Westfield, "How We Shop Now: What's Next?," for which the developer interviewed 13,000 shoppers across the United States and United Kingdom along with leading industry experts and trend-spotters.

The five key trends are:

• Rental Retail: With consumers already accustomed to the 'sharing economy' by tapping into Uber for rides, and Airbnb for places to stay, there is a growing appetite for “rental retail.” The trend is particularly strong among millennials, with 35% of 25-34 years olds interested in renting.

In addition, 15% of all U.S. respondents are interested in renting from their favorite stores. And 0ne-fifth of U.S. and U.K. shoppers are willing to spend $200 or more a month on unlimited clothing rental subscriptions.

Ads to what type of goods people most want to rent, exercise equipment topped the list (17%), followed by consumer electronics (15%), furniture (11%) and cars (10%).

• Enhanced Reality Retail: The report predicts that virtual reality will become ubiquitous as shoppers increasingly want this technology to understand how products will work for them specifically.

Forty-two percent of U.S. shoppers said they would like to use new technologies, such as virtual reality headsets, to see how products will look in their home. And a third said they would be interested in using virtual assistance to “try on” clothes at home.

• Classroom Retail: Shoppers are increasingly seeing retail spaces not only as places to purchase goods, but as classrooms where they can learn new skills and build social networks. Thirty-two percent of shoppers are interested in attending a lifestyle lesson at their favorite store.

Shoppers in the U.S. want health or fitness sessions most (29%), followed by inspiring learning sessions such as creative cookery (27%), expert sessions (20%) and then clubs (17%).

Over a fifth of U.S. shoppers in New York (22%), Los Angeles (23%), San Francisco (22%) and San Diego (21%) are interested in sessions involving skills development such as music making.

• Sensory Retail: Shoppers want to overload their senses with extraordinary experiences that re-awaken all of their senses, all at once, according to the report, which is something that Westfield calls “inside-out retail.”

While all five senses were seen as enhancing the shopper experience, vision and touch came out top. But just under a third of shoppers also identified smell and sound.

• Loyalty Programs that Recognize Good Choices: According to the report, there is a growing demand for loyalty programs that not only reward customers for transactions, but also for lifestyle choices. More than a fifth (21%) of U.S. shoppers said they would like to also be rewarded for good choices, including recycling (23%), exercising (23%), spending time with family (20%) eating healthier (16%), and even charity volunteering (11%).

The youngest, 16-24 year olds, were most interested in getting rewards for non-transactional behaviors.

The report is available to download here.

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D.Girish says:
Feb-18-2016 03:09 am

Interesting read, Marianne. I
Interesting read, Marianne. I particularly liked the idea of integrating loyalty programs with lifestyle choices - what a great technique of improving on personalization. I'm sure it will work really well for products that are tied to healthcare - like sport shoes, sport wear etc. With the advent of wearable tech and its popularity among consumers, this is definitely something that brands are going to adopt extensively in near future. One of the technologies that could help with this is iBeacon technology. Particularly because of its ability to tie data together across various channels of interaction. Yet even today, many retailers struggle a lot when it comes to kickstarting their iBeacon project. We have discussed in detail about the 3 critical components of a successful beacon strategy for retailers here: http://blog.beaconstac.com/2015/05/3-critical-components-of-your-ibeacon-retail-strategy-2/

D.Girish says:
Feb-18-2016 03:09 am

Interesting read, Marianne. I particularly liked the idea of integrating loyalty programs with lifestyle choices - what a great technique of improving on personalization. I'm sure it will work really well for products that are tied to healthcare - like sport shoes, sport wear etc. With the advent of wearable tech and its popularity among consumers, this is definitely something that brands are going to adopt extensively in near future. One of the technologies that could help with this is iBeacon technology. Particularly because of its ability to tie data together across various channels of interaction. Yet even today, many retailers struggle a lot when it comes to kickstarting their iBeacon project. We have discussed in detail about the 3 critical components of a successful beacon strategy for retailers here: http://blog.beaconstac.com/2015/05/3-critical-components-of-your-ibeacon-retail-strategy-2/

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MOBILITY

Kohl’s invites America to celebrate #AllTheGoodStuff

BY Gina Acosta

Kohl's is leveraging the popularity of the Oscars to kick-start the retailer's spring marketing campaigns in true omnichannel style.

The retailer announced that for the first time ever, the company will be the exclusive retail sponsor of the Oscars, which air this month.

“The Oscars will be a major brand moment for Kohl's,” said Will Setliff, Kohl’s executive vice president of marketing. “The program is one of the highest viewed broadcast events of the year and will introduce Kohl’s, on a bigger, more prominent stage, to new customers while also connecting with our core demographic. Kohl’s is taking a unique approach, including an engaging social campaign, to break through the excitement of the Oscars – one that I’m confident will be memorable and well-represent all that Kohl’s stands for.”

But while the Oscars will honor cinematic achievements, Kohl’s marketing campaign will celebrate viewers’ success and accomplishments. The cornerstone of the Kohl's campaign, which launches today, focuses on genuine moments of gratitude and celebration of #AllTheGoodStuff in everyday life, culminating with new broadcast spots and a second-screen viewing party on Hollywood's biggest night.

Components of the Kohl's campaign will include:

Social activation: Kohl’s social activation campaign will celebrate #AllTheGoodStuff by planning the ultimate Oscars viewing party for family and friends. Kohl’s is partnering with actress and comedian, Vanessa Bayer and party-planner-for-the-stars, Mindy Weiss, to design the perfect viewing party. Viewers are encouraged to check out @Kohls on Pinterest, Twitter, Facebook, and Instagram, for Oscar-party inspiration leading up to the event. Viewers are invited to share their own stories of appreciation for a chance to have their tweets read live on Oscars night by Vanessa Bayer at Kohl’s exclusive live viewing party or to appear in a montage featuring the best appreciation videos submitted by fans across the country. Kohl’s will continue the conversation around #AllTheGoodStuff as it re-launches Sonoma Goods for Life, Kohl’s largest private brand, in early March and continues its focus on active and wellness.

Exclusive live viewing party: Kohl’s will offer viewers a live, interactive, second-screen experience during the red carpet and commercial breaks through Periscope, which is now integrated into the Twitter interface. Viewers are invited to Vanessa Bayer’s exclusive Oscars viewing party with her closest family and friends by following Kohls on Twitter. In addition, viewers can influence the party through interactive programming.

In addition to Kohl’s multiple broadcast spots airing during the pre-show red carpet coverage and awards program, the sponsorship includes a digital package that extends Kohl’s presence online, including exclusive sponsorship of red carpet coverage on Oscar.com.

The 88th Oscars will be held on Feb. 28 in Hollywood, California, and will be televised live by the ABC Television Network at 7 p.m., ET/4 p.m., PT. The Oscar presentation also will be televised live in more than 225 countries and territories worldwide.

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MOBILITY

Domino’s orders Super Bowl stability

BY Dan Berthiaume

For a pizza retailer like Domino’s Super Bowl Sunday is the equivalent of Black Friday in terms of omnichannel traffic and order volume.

During the 2016 Super Bowl, Domino’s experienced considerably higher than usual order volumes across all channels – social, mobile, Web and in-store payments. Yet Domino’s avoided the embarrassment of any slowdown in order processing (as well as the Noid) in any channel.

“Our secure tokenization payment capabilities help to minimize friction for customers, and make it as simple as possible to check-out from any device or channel. So even on peak volume days, Domino’s can provide category-leading levels of customer interaction and stay focused on delivering satisfaction to its many customers.”

A key part of Domino’s strategy to ensure continuous, seamless order processing despite event-related spikes in volume is using the ACI Up Retailer Payments solution as a gateway to securely process omnichannel payments in the U.S. ACI’s token vault technology, which securely stores customers’ cardholder data, is a centerpiece of Domino’s AnyWare digital ordering platform. The ACI Up platform processes payments of any type, across any channel or network and in any currency.

“Throughout the day and especially around the high-demand periods just before kickoff and halftime, we quickly and securely processed a tremendous number of orders,” said Michael Davis, VP, international technology operations and store technology strategy, Domino’s. “The Up Retailer Payments solution provided a reliable infrastructure that allowed us to securely handle our peak volume of orders with ease, so the only thing our customers had to worry about was the score.”

For retailers in other verticals, a Black Friday outage is bad. But as proven by the successful holiday seasons had by several big-name mass merchandiser and apparel retailers who experienced digital outages during 2015 Black Friday weekend, it can be overcome with reliable performance the rest of the holiday season.

Super Bowl Sunday is a one-day event that represents about half of Domino’s $4.1 billion in annual digital U.S. sales. There is no way for Domino’s, or other pizza and fast food retailers that do heavy Super Bowl business, to make up business lost during a digital outage.

Therefore ensuring scalable, reliable omnichannel order management is even more critical for Domino’s than most other retailers. A Super Bowl loss for Domino’s would be even more crushing than it was for Cam Newton.

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