IBM forecast: Jewelry sales to shine this year
New York — Jewelry sales are expected to grow more than 11% in the second quarter and 9% overall this year, according to a new IBM Big Data-based forecast.
According to the analysis, improved consumer confidence, lower unemployment and enhanced stock dividends from fourth quarter 2012 have combined to leave people ready to start spending on luxury items again, like jewelry.
In addition, key retailers are buttressing the economic landscape and driving sales by leveraging Big Data analytics to better understand and respond to customers and trends. Sterling Jewelers, for example, which owns the popular Jared and Kay brands, overhauled its digital channels to better respond to changing consumer preferences. The move led to an increase in online sales of 49% this past holiday season, according to the IBM report.
In addition to the projected spike in jewelry sales, the latest forecast also predicts a boost to in-store consumer electronics sales, which are projected to grow 2.33% in the second quarter and 1.58% overall for 2013, after five years of decline. Children’s clothing is projected to increase 5.67% in the quarter.
Sterling commissioned IBM for research that included a customer segmentation analysis, voice of the customer surveys, and in-store observations. With deeper insights into customer needs and distinct shopping scenarios – as well as the capabilities required to support them online – they were able to extend the Kay and Jared in-store shopping experience online and into the mobile channel.
Gander Mountain opens first firearms store in Minnesota
ST. PAUL, Minn. — Gander Mountain will open Minnesota’s first Gander Mtn. Firearms Super Center in Rogers. in late April. It will be the company’s 12th store in the state.
Remodeling and construction activity is underway on an existing 30,000-square-foot facility at 20870 Rogers Drive, near the intersection of I-94 and State Highway 101. The Gander Mtn. Firearms Super Center is a new concept which will provide a specialty retail outlet focused specifically on fulfilling the needs of firearms enthusiasts, featuring thousands of new and used firearms of all kinds, and the industry’s best selection of firearms accessories, specialty apparel, ammunition and security.
Gander Mtn. Firearms Super Center will buy and sell a huge selection of used firearms and is staffed by firearms specialists on duty to give shoppers more one-on-one service.
“Gander Mountain is already recognized as the firearms experts, but with our latest Gander Mtn. Firearms Super Center we are taking the experience of shopping for firearms and accessories to an entirely new level of selection and service,” said David Pratt, CEO of Gander Mountain, “We are excited to bring this new retail experience and opportunity to the people of Minnesota and we’re confident that our unmatched selection and the expertise of our specialists will make this a premiere destination for those with an interest in firearms.”
The new store will provide the largest assortment and selection of firearms solutions for hunting, self-defense, recreation, competition and training, while at the same time upholding the highest level of compliance in accordance with all local, state and federal laws. Highly knowledgeable, professional and customer-focused store personnel are ready to assist you to in becoming a satisfied, prepared and well-informed firearms owner and user.
Walmart and Target prices comparable in Canada
A March 2013 study by Kantar Retail indicates that Walmart Canada and Target Canada are very competitively positioned from a basket price perspective.
The firm looked at basket of 29 items at one of Walmart’s Canada stores in Toronto and one of Target’s newly opened locations. Based on results from the comparison, Kantar Retail believes that Target’s "Pay Less" consumables prices will stack up well against its Canadian competition and that the retailer will prove to be a formidable challenge to Walmart Canada’s price position in the market.
"The retailers’ baskets were very competitive," said Robin Sherk, director of retail insights and contributor to the study. "We found that the price of Target Canada’s overall basket was within 25 cents of Walmart’s."
However, with Target’s 5% Rewards program its basket would have been 4.8% less expensive.
Among the other findings, Kantar indicated that Walmart’s edible basket drove its position, whereas Target’s was less expensive in non-edible grocery and health and beauty.
At the item level, more than half of the items were priced within 3% of each other. However, there were sizable price differentials on select items at both stores
"Looking ahead, we expect price competition between these two retailers to sharpen as the two retailers compete head-on for the same shoppers," Sherk said. "As Target expands its presence in the Canadian market, we expect Walmart to hone its focus to respond to Target’s aggressive position on certain items."
This may become particularly heated given that 2012 TNS Canada survey data found that 52% of Walmart Canada shoppers are interested in shopping at Target Canada for groceries and HBA items. We also expect Target to further hone its price positioning as it continues its store rollouts and matures in the Canadian marketplace.