UK Retailers turn to omnichannel strategies

These days, successful retailers know that they need to appeal to consumers across all channels. Creating a seamless shopping experience can help strengthen a brand's reputation and create a better shopping experience. Retailers in the U.K. are taking this advice to heart, as a recent survey conducted by SLI Systems revealed that a whopping 83 percent of brick-and-mortar as well as online merchants are planning to implement omnichannel strategies within 18 months, and 85 percent of this group will also invest in new technology to make this more possible.

Strategies vary for online-only and brick-and-mortar stores
When it comes to the approach retailers will take, there are variances between ecommerce merchants and retailers with physical locations. For companies operating solely online, omnichannel represents an opportunity to streamline the shopping experience across various devices. While brick-and-mortar businesses need to pay attention to this, they also have to place focus on the in-store experience and how it relates to their mobile and desktop offerings. So, an online store may dedicate its omnichannel budget to upgrading ecommerce software while a retailer with physical locations might benefit more from updating its point of sale. The right POS software can improve the checkout experience, making customers more likely to buy items rather than abandon purchases due to long lines and other holdups.

"Both communities are trying to use omnichannel to play to their strengths," said Tim Callan, SLI Systems' chief marketing officer. "Pure-play e-commerce businesses are seeking to stick with the model that brought them success in the first place – keeping overhead low and focusing on the techniques that drive online business growth. On the other hand, bricks-and-mortar (sic) retailers are trying to exploit the advantages that come with having physical locations in the same neighborhoods where their customers live."

Mobile is key when it comes to omnichannel
When retailers were asked to rate the various channels in order of importance to omnichannel strategies, 100 percent agreed that mobile was the No. 1 driver. Tablets came in at a close second with 97 percent, online stayed close with 95 percent. Brick-and-mortar lagged a bit behind at 61 percent, and kiosks came in last with just 15 percent. Retailers both on- and offline can take advantage of mobile in different ways. Marketing Land reported that big box retailer Macy's would be creating options for shoppers to scan the tags of items with their phones to find more product information and customer reviews. For online-only ecommerce stores, the ability to easily browse and make purchases via mobile could have the potential to bring in more sales.

Canadian retail awards focus on ecommerce strategies

Canada's online retail sector is growing, and the Canada Post will soon recognize top online merchants in the third annual Canada Post E-commerce Innovation Awards. According to Tech Vibes, the intent of the awards is to recognize ecommerce software ideas and online retail strategies, such as point of sale services, that were developed in Canada

A recent UPS survey revealed that roughly 25.5 million Canadian citizens access the Internet, creating a large pool of potential customers, so the ability for Canadian retailers to learn about the latest innovations in this sector could prove useful to help bolster business.

"As online retail evolves, the awards will evolve and we remain relevant to the ecommerce community," said Rene Desmarais, the senior vice president of parcels at the Canada Post. "Our new categories will help us recognize and reward the creative energy that has raised ecommerce in Canada to an exciting new level this year."

There are 10 categories in this year's awards, including best mobile experience, best community outreach, most innovative startup, and most creative marketing campaign. With CA$1 million in free shipping and marketing prizes, retailers can expect to find out the trade secrets of top competitors in this market when the awards take place Sept. 23.

Soaring retail sales bode well for Japan

Economic conditions in Japan are smiling on retailers, as March sales saw year-over-year improvements that were better than they've been in the past 11 years. According to BBC News, the 11 percent increase between March 2013 and last month may have been due in part to the sales tax increase.

The Japanese government raised the sales tax from 5 to 8 percent, and the new rate went into effect April 1, so shoppers may have been buying more than usual to take advantage of tax rates while they were still low. This is the first time Japanese consumers have seen a hike in retail taxes since 1997, and Reuters reported that a similar spending increase took place prior to the last time sales taxes was raised.

Japanese retailers are preparing for a dip in sales in April, as it's likely consumers will spend less as they adjust to the higher tax rates. However, Reuters stated that this dip should not be lower than the expectations of the central bank.

Retailers can make moves to improve their sales numbers, such as offering discounts that will offset the cost of the tax, providing free or reduced-rate shipping options viz ecommerce software or providing customer loyalty programs that offer perks and rewards at the point of sale.

How can you stay competitive in an ever-changing retail environment?

Everything happens faster these days, so retailers need to be able to keep up with changing demands and consumer trends. Having an updated and efficient online store with the right ecommerce software can help drive sales, and knowing which features to offer means staying on top of what consumers want.

Christopher Brace, founder and CEO of consulting firm Shopper Intelligence, explained in a recent interview with FRESH that retailers need to look beyond their products and focus on the emotional and behavioral needs of their customers. In addition to looking at what consumers might want, the focus should fall equally on why they want it. He pointed to two key factors that can help brands gain more recognition – relevancy and emotional connection between shoppers and the brand.

"If we're going to address shoppers' subconscious minds – the real driver of behavior – then we need to become much more adept at using emotion-based information (specifically insights), as the basis for our strategies," Brace said.

Retailers looking to make improvements can focus on customization. Mashable suggested that personalizing the shopping experience is a crucial way to strengthen customer satisfaction. For instance, retail management software that tracks retail analytics about individual shoppers can help store associates better assist customers in finding the products they want to improve their in-store experience, which could lead to repeat visits and more sales.

Canadian retail sales are climbing

The most recent reports from Canada show improvements in the retail industry, especially for clothing and accessories stores. The latest report from Statistic Canada found that retail sales increased 0.5 percent in February 2014 to a total of about CA$41 billion (US$38 billion). The report looked at 11 different sectors of retail and found seven of them had improved, including health and personal care stores as well as general merchandise retailers and clothing, shoe and accessories stores.

Health and personal care stores, which includes pharmacies, drug stores, and supplement stores, saw the biggest month-over-month gains of 2.6 percent, and general stores had gains of 1.4 percent. The clothing and accessories category may have seen the most important changes, as gains in February were the first following two months of declining sales.

Overall, this sector experienced a 1.5 percent increase in sales, and clothing stores were responsible for much of the growth, with 1.8 percent gains, while shoe stores saw a rise of 0.8 percent and retailers selling accessories, leather goods and jewelry only had an average 0.1 percent improvement. Electronics and appliance stores also saw gains, with sales jumping up 1.3 percent from January.

Canadian retailers can capitalize on the improving economic conditions by ramping up their shopping experiences. More efficient point of sale services, for instance, can encourage customers to come in and make purchases. Online merchants may want to look into updating their ecommerce software as well, which can help draw more site traffic.

Survey predicts jump in online retail sales in India

India's online retail marketplace is expanding quickly, and the latest reports indicate this trend will only continue. The Asian nation's ecommerce sector is still in its early stages, but it has been experiencing rapid growth. American Express recently reported that by 2015, there will likely be more than 38 million Indian consumers making purchases virtually, according to American Bazaar Online.

Currently, only about 10.4 million people (about 14 percent of the total number of Indians going online) make purchases over the Internet, but if American Express's predictions are accurate, the massive jump will represent a 256 percent increase in online shopping among Indian consumers. A major factor behind this prediction is the fact that more people are getting credit cards, giving them access to online shopping. This market has seen modest gains in recent years, rising about 35 percent on average in the past few years, the source pointed out.

To take advantage of India's growing online retail sector, merchants across the globe may want to consider ecommerce software that offers multiple languages. Studies have shown that shoppers are more likely to make purchases when online stores let them browse in their native language.

Latest reports show major retail sales rebound in March

Earlier reports on U.S. retail sales for the month of March revealed sluggish improvements from the winter months, but the latest findings reveal the first quarter finished on a strong note. This will translate into a major rebound in the second quarter of 2014, as the weather and economic conditions improve.

According to the Commerce Department, March saw a month-over-month increase of 1.1 percent in all retail sales, which was the largest monthly gain since September 2012. This was a bit higher than Bloomberg's projected gain of 0.9 percent, but the news source reported that expert projections ranged from 0.1 percent losses to 1.5 percent gains. 

"It shows there is an underlying current of strength in the economy despite the drag from the severe winter weather," Robert Dye, the chief economist at Comerica, told Reuters.

As the weather slowly warms up across the nation, retail sales will likely jump even higher in April and beyond. It will help that 2014 has seen significant gains in employment, with an average 195,000 jobs per month added in January and February, and no signs of slowing, according to Reuters. With more people entering the workforce, there will consequently be an uptick in sales.

What does the future of retail look like?

Ecommerce software was a major game-changer in retail operations, allowing merchants to take their business online to virtually limitless marketplaces. However, this is hardly the last frontier molding the retail landscape. Recent advancements in retail technology have presented decision-makers with exciting opportunities to re-imagine the way they engage customers and attract loyal patrons to their stores.

Rather than driving out brick-and-mortar storefronts, technology has offered merchants fascinating ways to interact with consumers across various platforms, making the most of the unique opportunities inherent in each one. Pointing to the omnipresence of retail possibilities and the extent to which technology can catalyze a merchant's success, analysts have noted that retailers would be wise to pay attention to some of the latest trends forging the future of the industry.

Here are a few insights from Forbes contributor David Dorf of Oracle and experts that participated in the recent Retail Technology Conference, as reported by RIS:

  • More data, from everywhere. Physical stores will collect information in similar ways as online channels, Dorf predicted. With the Internet of Things offering greater opportunities for sensors and other connected devices, retailers can observe trends such as customers' paths around stores before they make purchase decisions. All of this data can contribute to retail business intelligence initiatives.
  • Traditional methods work, too. Steve Siebel, vice president of merchandising for Aerosoles, explained at the RTC that his company mailed millions of catalogs, since they're still the "number one driver of store and online traffic." This goes to show that older strategies and new technologies can support one another.
  • It's personal. Retail technology offers merchants the tools they need to conduct personalized marketing campaigns, with promotions and advertisements tailored to shoppers' unique histories and preferences. Dorf noted that a recent study showed that 73 percent of respondents preferred the idea of "individual retail."
  • Customer service and shopping experiences are worthy of close attention. Not only are patrons' expectations changing in step with technology, but advancements have enabled retailers to set themselves apart by creating impressive encounters. Sam Hogenson, vice president of customer-facing technology for Nordstrom, told conference attendees that he gives his attention first and foremost to supporting employees who serve as the primary points of contact for shoppers.
  • It's a fast-paced world. Customers expect instant gratification, inspiring merchants to develop ways to deliver products faster and more conveniently, Dorf noted. Similarly, retailers must keep up with ever-changing technology and consumer trends. Hogenson emphasized business leaders must "keep up with the speed of change. Stop thinking, start doing. Holding one-hour meetings for four weeks isn't moving fast enough."

Brick-and-mortar space still in demand in Twin Cities

Many have speculated that the rise of ecommerce would lead to the fall of brick-and-mortar, but as online shopping gains popularity, the landscape of in-store retail has adapted. In Minneapolis and St. Paul, Minn., for example, city officials have seen the number of vacant big-box retail stores drop by about 50 percent in the past five years, according to Twin Cities Business.

"There is still demand for space. It may not be the same uses that were once in place, but there's still demand for space," Tom Martin, a commercial real estate broker, told the source. "And there's very little new space coming online."

A big part of the renewed interest is that retailers are finally recovering from the recession and able to resume business that was lagging during the economic dip of recent years.

Brick-and-mortar stores will need to alter their business practices to keep up with the latest ecommerce software. Business 2 Community suggested offering incentives, such as discounts or rewards, for purchasing in-store rather than online. A loyalty program for frequent customers could enhance the point of sale experience and keep shoppers coming back time and again.

March retail sales lagged slightly, but April recovery expected

Retail sales saw month-over-month gains in March, but the growth was modest compared to the same time period last year thanks to the slow start of spring weather and the late timing of the Easter holiday. However, retailers will likely see an uptick of store traffic in April as the weather improves.

"Retailers and investors will be looking for strong Easter sales coupled with the release of pent-up demand for warmer weather merchandise this month," Ken Perkins, an analyst with Retail metrics Inc., told the LA Times. 

He explained that sales at stores operational for more than a year increased 2.5 percent last month, which lagged behind the previous year's gains of 3.5 percent. The number of shoppers actually visiting stores dropped 1 percent, The Wall Street Journal reported. Part of the reason may be that Easter falls in April this year, whereas last year the holiday was observed in March.

While shoppers are expected to spend more this month, retailers can shift the odds in their favor by upgrading their retail management software and finding new ways to improve the point of sale experience. For instance, installing POS software that accepts multiple payment methods, such as mobile payment apps, may encourage shoppers to make purchases.