Study: Shoppers look for deals
As much as today's shoppers want convenience, they also prioritize saving money and will make time to uncover the best deals online and offline.
Over half (53%) of consumers indicated they invest over two hours a week looking for deals and savings across all sources, according to a survey from Valassis. About 25% of millennials and moms spend over four hours a week in their search for value.
According to the “2017 RedPlum Purse String Survey," in taking advantage of deals, 41% of respondents said they use an equal mix of print and digital coupons — up six percentage points from last year. More than half (52%) print out digital coupons for use in stores. Meanwhile, 71% said they would use a featured coupon code from a print advertisement to buy online. This group increases to 78% for millennials and 79% for affluent shoppers ($100K+ household income).
Mobile also plays a key role in how consumers save. More than three quarters of respondents and 93% of millennials use mobile while in a store to look for coupons and discounts.
Additionally, more than half of millennials said they have used their mobile device to compare deals online and in-store. Showcasing the power of mobile and geolocation data, 57% of consumers said they have visited a business after receiving an offer on their mobile device when they were near that location.
Other multichannel consumers’ savings habits include:
• Ordering more items online to qualify for free home delivery (31%), and using pick up in store services (15%);
• Using more print coupons (57%); and
• Using more mobile coupons and apps (42%; 55% for affluent shoppers, and 52% among millennials).
“Consumers are embracing a multitude of channels to browse, research, compare prices and make purchases,” said Curtis Tingle, chief marketing officer, Valassis. 'This is keeping marketers of both small and large businesses on their toes, as they work to disrupt consumers’ non-linear shopping journeys. Our recent research indicates that shoppers don’t necessarily delineate between the physical and digital shopping worlds; they want to be able to redeem print and digital deals both in-store and online.”
Moody’s: Amazon is ‘weakest’ of large retailers
Amazon isn't as dominant as is widely believed — at least not according to a new report from Moody's Investor Services.
Yes, the online giant continues to outpace other retailers when it comes to online sales growth, and its stock has gone through the roof. But it falls behind its large competitors in some key areas, according to Moody's VP and lead retail analyst Charles O’Shea, reported MarketWatch.
“Although Amazon’s share price is outperforming retailers, conventional methods of evaluating operating performance, such as operating margin or any profitability measure, suggest that Amazon is actually the weakest of the large retailers, excluding sales growth,” O'Shea wrote in a report. "And even based on that measure, one could argue that Amazon has been ‘buying’ sales for the past 15 years, considering profits have not been its primary focus — unlike other retailers.”
The report noted the crucial role the company's cloud services business, Amazon Web Services, has played in its growth.
"In terms of total revenues, Amazon continues to grow product sales in the mid-teens, which we note is lower than many brick & mortar retailers’ online growth,” O'Shea wrote. “But again, that growth is nowhere near the retailers’ overall profit levels.”
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Walmart takes its marketplace north of the border
Walmart is expanding its online breadth in Canada.
The discount giant expanded its global online marketplace to its Canadian e-commerce store, Walmart.ca, a move that doubles the site’s online product assortment. The retailer expects this number to quadruple by the end of this year, according to Walmart.
Through the expansion, Canadian shoppers now have access to 27 third-party sellers, ranging from outside brands to small businesses that feature merchandise across the home, baby, apparel, toys, and sporting goods categories. Walmart selected each seller based on their online reputation and customer service, as well as their ability to satisfy its Canadian customers’ demand for a broader selection of quality products.
“Our goal is simple – to make shopping easier and more convenient for our customers,” said Rick Neuman, executive VP, technology & e-commerce, Walmart Canada. “The expansion through the Walmart.ca marketplace allows us to rapidly grow our product assortment through sellers we’ve chosen specifically to address the needs of our customers.”
Walmart Canada will continue to invite other sellers to join the site in the coming months, according to the retailer.
The move takes a jab at its rival, Amazon. While the online giant continues to expand its physical presence— especially through its recent acquisition of Whole Foods Market — Walmart is fighting back with its own strategic acquisitions that continue to bolster its digital reach and online product assortment. For example, the retailer acquired jet.com in September, followed by Shoebuy in December. In February, it acquired outdoor apparel retailer Moosejaw, followed by ModCloth in March. Earlier in June, the chain announced it would purchase Bonobos for $310 million in cash.