Valentine’s Day shoppers loved their smartphones

When shopping for gifts for their loved ones, many consumers used their smartphones as their primary shopping tools. According to the IBM Smarter Commerce Benchmark, approximately 10.1 percent of total Valentine's Day sales were made via smartphones, up nearly threefold from the same time frame in 2011.

Apple's mobile devices continued to be the most popular shopping tools for American consumers. Approximately 5.5 percent of total web traffic stemmed from the iPhone and 4.9 percent came from the iPad. By comparison, Google's Android accounted for only 4.4 percent of mobile traffic.

"The Valentine’s data is proof positive that the online and mobile shopping habits witnessed over the November and December holidays are not fleeting," the IBM report noted. "Rather, a permanent change is in effect with the empowered consumer turning to mobile devices not just for blockbuster shopping days but for all holidays in between."

Jewelry, intimate apparel, health and beauty products and flowers were the most popular items sold through mobile devices.

A forecast from the National Retail Federation for Valentine's Day suggested that spending would be up considerably this year compared to 2011.

Retail Industry Leaders Association takes firm stance on online sales tax collection

This year, the Retail Industry Leaders Association is looking to tackle a retail merchandising issue that is being played out in state legislatures across the country: the enforcement of sales tax collection among online retailers.

In the recently released 2012 Retail Industry Leaders Association Agenda: A Roadmap for Job Creation, the organization is hoping to point congressional offices to the issue of sales tax parity.

Currently, many business experts argue that current sales tax collection methods put in-store retailers at a disadvantage to their online counterparts, which in many states aren't required to collect sales tax. This policy allows online retailers to charge lower prices in many cases.

"The role that Main Street retailers play in the economy is enormous, but the laws governing sales tax collection put them at a distinct disadvantage to online-only retailers, threatening their ability to grow and create jobs," said RILA president Sandy Kennedy.

Currently, states such as Illinois and Arizona are weighing the advantages and disadvantages of bills that would not only make in-state online retailers pay sales tax, but out-of-state companies that sell in-state as well.

Retail to see swift changes in technology during next three years

In the past five years, technologies have changed rapidly driven by advancements in mobile devices including the smartphone and the tablet computer.

According to a recent talk given by eBay president and CEO John Donahoe at the Digital Life Design conference in Munich, retailers should expect to see continued evolutions in their retail point-of-sale software as well, the website Venture Beat reports.

"I believe that you’re going to see more change in how consumers shop and pay … in the next three years, than we’ve seen in the last 20 years," Donahoe told conference attendees, according to the source.

Much of this change will be driven by retailers' need to adapt to multichannel shopping opportunities and the ability of consumers to now research products in-store on their mobile devices. Donahoe called 2012 an "inflection point in retail, shopping and paying."

Target recently took action against a mobile practice it considers detrimental to its business – "showrooming," or checking out products in-store to then purchase them online for cheaper.

Target sends letter to suppliers in effort to fight ‘showrooming’

Major retailer Target is taking action against an increasing trend occurring in its outlets that is troubling store operations: "showrooming."

Showrooming occurs when shoppers go to brick-and-mortar retailers to research, try out or see a product in person, but then buy it online from a rival, often at a discounted price, the Wall Street Journal reports.

In an effort to combat this shopping tactic, Target sent a letter to suppliers encouraging them to create products that would differentiate them from their competitors as well as joining with Target to match other retailers' prices.

"Target has a long tradition of getting suppliers to provide exclusive products," the source explains. "It has teamed up for years with fashion designers to offer time-limited discount clothing collections, and it recently announced it will open a series of temporary boutiques featuring clothes, food and home furnishings from popular regional stores."

Many retailers are opting for multichannel shopping as well as introducing new technologies and deals to encourage consumers to shop in-store rather than online.

Retailers are doing a better job with their apps than other sectors

While retailers may still have room for improvement with their mobile apps and websites, they are doing better as a whole than other sectors, according to a new customer satisfaction survey conducted by ForeSee Results.

Apple and Amazon had the top-rated apps of the retail sector, achieving ratings of 85 and 84 points out of 100, respectively. While Amazon's desktop site was still perceived as being better, the difference was only marginal – 88 points compared to 84. The average customer satisfaction rate for retailers analyzed is 76, significantly higher than the overall average score of 67.

"The largest gaps between web satisfaction and mobile satisfaction are for Avon, with a gap of eight points, and Walmart.com, with a gap of seven points," InternetRetailer notes, citing the report. "A large gap indicates that customer needs are not being met nearly as well in the mobile experience as they are online."

The number of Americans owning smartphones is growing quickly, with the devices currently in the hands of 91.6 million consumers.

2012: The year retailers embrace tablets

Tablet devices can be used for a variety of retail purposes. Sales associates can use them to help answer customer questions or check inventory, while companies could also set them up as demo stations. In 2012, a greater number of retailers are expected to make use of these devices to better serve customers, according to new data from RISNews.

The intended implementations of these devices vary: 51.9 percent will be used for sales floor support, 48.1 percent want to utilize tablets to refresh the store experience, 46.3 percent plan to increase comp-store sales and 42.6 percent intend to connect them to enterprise apps.

"Our research reveals that tablet adoption is no longer a question for retailers," commented Joe Skorupa, editor-in-chief at RIS News. "They know they are going to deploy tablets in the near-term, it’s just a matter of what types of tablets and how they’ll integrate them into the store experience."

Fortunately, tablet prices are dropping as well, making the barrier to entry that much lower for progressive retail brands.

Customers use mobile devices to browse competitors’ prices while in-store

Smartphones can be retailers' best friends, enabling consumers to find their stores when they aren't at home or secure discounts that encourage them to make purchases. However, retail brands that aren't offering their customers the best prices may also want to take heed – a startling high number of users are tapping their devices to check prices elsewhere.

According to a new survey conducted by Prosper Mobile Insights, new mobile technology is being employed by consumers who are in-store to check prices at other retailers to make sure they are getting the best prices. Nearly half of respondents (40.6 percent) said they had used their phones to do just that. Conversely, only 30.6 percent of consumers compared prices and ended up buying the product from the store they were currently in.

"The data reveals that many mobile users are taking advantage of their smartphones and tablets while shopping, and some of them are walking out the door to make a purchase at another retailer," Prosper Mobile Insights says.

Not all tech-savvy consumers are using their phones for this purpose. For example, 35.8 percent said they used their phones to read product reviews, 29.7 percent scanned quick response codes with their devices and 26.7 percent accessed social check-in platforms while in-store.

Smartphones are giving consumers the power to shop smarter and inform their purchase decisions. There are a variety of actions that can be performed through these devices. They aren't something to fear but retailers do need to recognize the power they can have on customers and embrace the technology rather than work against it.

"Consumers are now able to ask questions of the sales staff, touch the product, check for the best price on their mobile device and then walk out the door. The best way for retailers to counter the comparison shopper is to offer an in-store price match or other promotion to influence them to purchase," Phil Rist, executive vice president of strategy at Prosper, explains.

As of November, more than 91 million Americans own smartphones. In 2011, the number of smartphone owners shot up by more than 20 million. That trend will only continue as plans and devices become less expensive. It's vital for retail brands to develop a mobile strategy sooner rather than later to avoid being burned by the new technology.