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TJX, Target and other discounters exceed expectations in February

BY CSA STAFF

New York City Shoppers didn’t let the snow and cold weather in February get in the way of their hunt for bargains. Many discount retailers reported better-than-expected same-store sales for the month.

TJX Cos. said its same-store sales in February rose 10% as shoppers continued to seek out value-priced items. Its results beat analysts’ expectations.

“We believe that value is more important to consumers than ever before,” president and CEO Carol Meyrowitz said in a statement.

Total sales for the four weeks ended Feb. 27 rose 16 percent to $1.4 billion. Last month TJX said its fourth-quarter profit surged 58% and discussed plans to expand, saying it could eventually double in size.

At Target, same-store sales rose 2.4% in February sales. Results beat Target’s expectations of a flat to slight rise in the sales figure. Analysts had expected a 1% increase. Food and household essentials remained the biggest sellers with furniture and apparel sales about flat with last year.

The company expects April sales in stores open at least one year to be up in the mid- to upper-single digits because of an earlier Easter.

In other results:

  • Family Dollar reported a 3.6% rise in same-store sales for the second quarter ended Feb. 27. Total sales rose 4.9% to $2.09 billion from $1.99 billion last year.
  • At Fred’s, sales climbed 2% in February, better than the 0.3% decline that analysts surveyed by Thomson Reuters forecast. Total sales for the period ended Feb. 27 increased 3% to $150.7 million.
  • Off-price retailer Ross Stores reported an 11% increase in February same-store sales. Sales increased 16% to $554 million for the four weeks ended February 27, 2010, up from $476 million for the four weeks ended February 28, 2009.

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Social media: Proceed with caution

BY CSA STAFF

By Kevin Moffitt, [email protected]

There is no denying that social media presents a significant opportunity for retailers. Connecting your customers simultaneously to each other and to your brand is a potentially a powerful marketing strategy.

However, any e-commerce/cross-channel marketing strategy, particularly those that encompass social media, should be both:

1. Closely aligned to customer needs and behaviors; and
2. Prioritized against other potential sources of business value.

Amid the excitement generated by social media, I’ve talked to many retailers who want to discuss their social networking integrations prior to doing even a basic usability study on their own Web sites. We’ve found major holes in online checkout processes, for example, that cost the retailer millions of dollars in lost sales. Optimizing product details pages, search, and checkout won’t win a retailer a lot of attention in the press, but it can lead to substantial ROI. The point is to address first things first — go where the easy money is.

Prioritizing social media against other sources of business value is a critical exercise for retailers to determine what strategy is right for them. Before focusing exclusively on external sites such as Facebook, where it may be difficult to entice customers to “friend” your company, and even more difficult to convert those who do, I would encourage retailers to look at strategies for leveraging the traffic they already have coming to own sites.

Average e-commerce conversion rates vary around 1% and 5%, meaning 95% or more of the traffic an e-commerce site receives doesn’t translate immediately to a sale. On-site community building tools such as ratings and reviews, blogs, discussion forums, photo galleries and contests, and moderated chat sessions can not only help convert new customers, but also help deepen relationships with existing customers.

One significant benefit of this approach is that all of the data that’s gathered on the site belongs to the retailer directly. Another key benefit is that community pages can be monetized through onsite advertising and sponsorship programs, which translates directly to the P+L, allowing the retailer to further leverage non-converting visitors.

That being said, for those retailers who have optimized their own site experience, Facebook and Twitter can be effective marketing tools for communicating promotions and connecting consumers to your brand. Some retailers, such as Victoria’s Secret, boast over a million fans on their Facebook pages. Other sites, such as the crafts marketplace Etsy, have over a million followers on Twitter.

Yet many still struggle to determine the value of friends and followers, at least in the short term. In the Etsy example, their outreach program is successful in part due to their organizational focus — Matt Stinchcomb, their dedicated VP of community, is responsible for both internal and external social programs, including onsite features such as blogs and forums, as well as integration into Facebook and Twitter.

So, while social media is an exciting platform that carries significant branding and traffic potential, retailers are best served taking a step back to examine both customer behavior and business priorities to ensure future success.

Kevin Moffitt is VP strategy & customer experience of CrossView, which brings more than 12 years of experience building cross-channel solutions for clients ranging from Top 10 Internet retailers to organizations expanding into multiple channels (crossview.com). He can be reached at [email protected].

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Macy’s launches new fashion, home brands

BY CSA STAFF

NEW YORK Macy’s announced that it has introduced new fashion brands and expanded home lines.

The new fashion brands include an Ellen Tracy women’s sportswear line, Threads & Heirs, a men’s casualwear line by designers Ruffian, Kouture by Kimora younger shoppers, Mstylelab, a jewelry and hair accessories line.

 

The expanded home lines include Vida for Espana by Eva Mendes — brand extension to casual Latin-inspired dinnerware and Martha Stewart Collection — brand extension to mattresses with styles in multiple comfort choices

 

The new collections will begin arriving in select stores in March and April.

The Ellen Tracy line will feature modern separates retailing from $30 to $150. Threads & Heirs items, including tops and jackets, will range from $24 to $99. Items in the Kouture by Kimora line will range from $24 to $40. Accessories in the Mstylelab line will retail from $6 to $40. The Martha Stewart Collection will feature mattresses from $1,069 to $4,369. The Vida for Espana  collection now includes tabletop pieces from $6 to $50.

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