OPERATIONS

Study: Walmart and Best Buy lead for retail stores used for ‘showrooming’

BY Marianne Wilson

Toronto — As consumers continue to seek more convenient methods of shopping, through mobile and online, the potential for further sales erosion continues to threaten retailers, according to a new study by branding and design firm Shikatani Lacroix.

The report, “RE:STORE – Redefining Retail,” finds that 59% of U.S. shoppers “showroom” – or browse for products in store but then buy them online.

Walmart and Best Buy lead for retail stores used for “showrooming,” whereas Amazon.com dominates in online purchases. One-quarter of U.S. consumers who shop online rarely or never buy from a traditional retailer’s website – 45% of them are shopping at Amazon.com. This amounts to a potential retail sales leakage of about 15% (to as high as 42%) of all U.S. browsers going to an online retailer.

“This behavior spells trouble for a number of traditional retailers who will experience significant sales leakage if they don’t stem the flow of lost potential revenue to online retailers,” said Jean-Pierre Lacroix, president of Shikatani Lacroix.

Conducted by Hotspex, a research leader in emotional and behavioral science, the study also examines the emotional attributes consumers experience while shopping online versus shopping in store, and based on those emotions determines a relationship index of retailers – from highest emotional connection to most vulnerable to sales erosion.

At the top of the list is Amazon, which has the highest overall relationship index of all retailers. The brand elicits strong emotional response in the areas of trust and success, and has very strong satisfaction ratings. Walmart, on the other hand, has a much lower emotional valence. While its online relationship score is high in the mass merchandise category, its in-store experience significantly lags. Walmart’s retail personality is considered boring.

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A.Roy says:
May-31-2013 06:59 am

showrooming
I really love showrooming. Thank's for providing such a informative information. Online MBA

A.Roy says:
May-31-2013 06:59 am

I really love showrooming. Thank's for providing such a informative information. Online MBA

C.Swan says:
Apr-18-2013 05:46 pm

Online shopping
Online shopping is of great help. Has made things really easy for shopper :) http://www.venkotech.com/

C.Swan says:
Apr-18-2013 05:46 pm

Online shopping is of great help. Has made things really easy for shopper :) http://www.venkotech.com/

A.Jain says:
Apr-18-2013 12:09 pm

good job
it imparts great knowledge http://www.ifeel.edu.in

A.Jain says:
Apr-18-2013 12:09 pm

it imparts great knowledge http://www.ifeel.edu.in

P.Rogers says:
Mar-20-2013 05:38 am

I guess the big difference
I guess the big difference here is the kind of services offered.People prefer to shop online for convenience. Some online offers better services than in stores. - Michael Courouleau

P.Rogers says:
Mar-20-2013 05:38 am

I guess the big difference here is the kind of services offered.People prefer to shop online for convenience. Some online offers better services than in stores. - Michael Courouleau

M.Mirevski says:
Mar-08-2013 11:14 am

Here are the reasons why an
Here are the reasons why an electric toothbrush is better than the manual one: A manual toothbrush only cleans the food and germs from the surface of the teeth but a pulse toothbrush reaches much deeper. Make sure that the brush head is right for you. here Make sure that replacement brush heads are easily available. It has not been conclusively proven that electric toothbrushes are better than manual ones, and using either brush can clean just as well provided that the brush is used properly and as prescribed.

M.Mirevski says:
Mar-08-2013 11:14 am

Here are the reasons why an electric toothbrush is better than the manual one: A manual toothbrush only cleans the food and germs from the surface of the teeth but a pulse toothbrush reaches much deeper. Make sure that the brush head is right for you. here Make sure that replacement brush heads are easily available. It has not been conclusively proven that electric toothbrushes are better than manual ones, and using either brush can clean just as well provided that the brush is used properly and as prescribed.

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FINANCE

Bon-Ton Stores to pay $450,000 in civil penalty related to error with drawstrings

BY Staff Writer

New York — An issue related to drawstrings has resulted in Bon-Ton Stores agreeing to pay a civil penalty in the amount of $450,000.

The U.S. Consumer Product Safety Commission alleges that the fashion retailer knowingly failed to report to the commission that its children’s hooded jackets and sweatshirts were sold with drawstrings through the hood. The penalty agreement has been provisionally accepted by the commission in a 3-0 vote.

Children’s upper outerwear with drawstrings, including jackets and sweatshirts, pose a strangulation hazard to children. CPSC and three U.S. importers announced recalls of children’s jackets and sweatshirts with drawstrings through the hood on February 18, March 10 and May 27, 2010. Bon-Ton was a retailer of about 800 total jackets and sweatshirts in all three recalls.

Federal law requires manufacturers, distributors and retailers to report to CPSC within 24 hours after obtaining information reasonably supporting the conclusion that a product contains a defect that could create a substantial product hazard, creates an unreasonable risk of serious injury or death or fails to comply with any consumer product safety rule or any other rule, regulation, standard or ban enforced by CPSC. Federal law also bars selling products that have been subject to a voluntary recall by a manufacturer or a mandatory recall ordered by the commission.

In agreeing to the settlement, Bon-Ton denies CPSC staff allegations that it knowingly violated the law.

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OPERATIONS

Kroger promotes Lynn Gust to president of Fred Meyer

BY Marianne Wilson

Cincinnati — The Kroger Co. announced the promotion of Lynn Gust as president of the company’s Fred Meyer Stores division. Gust, 59, has been senior VP operations since 2011.

“Lynn’s long history with Fred Meyer and deep knowledge of our business will serve our customers well,” said Rodney McMullen, president and COO of Kroger. “His passion for our employees and customers make him a great fit to carry on the Fred Meyer tradition.”

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