Survey: Store retailers leaving money on table
Disappointing shopping experiences are costing brick-and-mortar retailers serious money.
That’s according to the recent TimeTrade State of Retail 2017 survey, whose results suggest that U.S. retail stores left about $150 billion in potential revenue on the table in 2016 by failing to offer shoppers the personalized shopping experiences they want.
Respondents said that, on average, they would increase their in-store spending by 4.7% if they received better, more personalized service from retailers.
“Just imagine the positive financial impact on brick-and-mortar retailers if revenue jumped by 5%,” said Gary Ambrosino, CEO of TimeTrade. “A renewed focus on providing shoppers with a better, more personal in-store experience would go a long way toward stemming the tide of defection to competitors and online sellers.”
Nearly half (49%) of survey respondents said they “never” or only “sometimes” receive what they consider to be personalized service. In fact, 70% of the time they shop they said they “never” or only “sometimes” can find a sales associate when they need assistance. Seventy-one percent of consumers surveyed said they sometimes or always abandon dressing rooms and leave stores if they can’t obtain help with sizes, color, etc.
On the other hand, 88% said that when helped by knowledgeable associates they are “somewhat likely” or “extremely likely” to make the purchase.
Despite the continued growth of online shopping, 82% of respondents said they still do half or more of their shopping in physical stores (excluding grocery stores). Even when an item is available online — as well as in a nearby store — 75% respondents said they preferred to buy from the physical store.
When asked what they value most when shopping in a retail store, respondents cited prompt service (47.3%), personalized experiences (26.2%) and smart recommendations (17.2%) the most. To improve service, 64% said they would like to schedule in store appointment (from any device) with a retail associate at a time most convenient to them.
MILLENNIALS: Millennials said they would enjoy improved shopping experiences if provided personal assistants/shoppers (45%), beacon technologies (31%), and organized systems with wait-time displays and text/email updates when their turn is near (29%).
“In store shopping is far from dead — but it does have to change to keep up with the trends,” Ambrosino said. “These survey results show that people definitely like shopping in stores so they can touch and feel products, and because they enjoy receiving prompt, personalized service. The key to success for brick-and-mortar retailers is to fully utilize their existing staff and relentlessly focus on providing personalized service to every customer across the board and capture that additional revenue, instead of letting those dollars go elsewhere.”
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The world’s most valuable retail brands are…
An online giant and the world’s biggest retailer claim the top two positions in a study that ranks retail companies by their brand value.
Amazon ranked as the world’s most valuable retail brand in the annual study by valuation and strategy consultancy Brand Finance. The company’s brand value, $106.4 billion, is nearly double that of Walmart ($62.2 billion), which ranked as the second most valuable retail brand. (An explanation of the ranking is provided at the end of article.)
Amazon also ranked as the third most valuable brand across all industries, just behind Google ($109.5 billion) and Apple ($107.1 billion).
“The firm (amazon) is growing strongly as it continues to both reshape the retail market and to capture an ever larger share of it,” stated Brand Finance in a release. “Its brand value is already nearly double that of second-placed Walmart. Amazon Fresh, its grocery service, is still relatively limited in scale but this year began operating overseas for the first time, serving Central and East London initially.
Rounding out the top five most valuable retail brands were Alibaba, with a brand value of $34.9 billion; The Home Depot, $30.2 billion; and Ikea, at $24.1 billion.
Other top ranking retail brands included CVS, No. 6 with a brand value of $23.2 billion; Target, No.7 (brand value of $17 billion; Walgreens, No. 8 ($16 billion); Lowe’s, No.9 ($14 billion); and Costco, No.10 ($13.4 billion).
The brands in the Brand Finance study are first evaluated to determine their power / strength (based on factors such as marketing investment, familiarity, loyalty, staff satisfaction and corporate reputation) and given a corresponding letter grade up to AAA+. Brand strength is used to determine what proportion of a business’s revenue is contributed by the brand, which is projected into perpetuity to determine the brand’s value.
Hi, Could you provide a link to the original study? I am interested in learning more about the metrics that they used to rank these companies. Thank you
Footwear giant in customization partnership
Shoppers will soon be able to personalize and accessorize the shoes they buy at DSW Inc.
The retailer has entered into a partnership with Trend:Bar, a new, Los Angeles-based company that produces luxe fabric stickers, appliques, charms, shoelaces, patches, and creative add-ons that customers can use to personalize footwear and accessories.
Under the partnership, DSW will offer Trend:Bar items in select stores and on DSW.com.
"Fashion is an expression of who you are and a reflection of your personal style, so partnering with Trend:Bar and offering our customers the opportunity to personalize their favorite footwear or accessory was a no brainer," said Todd Dreith, GMM – men's, athletic, kid's, handbags & accessories.
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