Back-to-school shopping not over with start of classes

Although recent numbers from retailers have been mostly positive in regards to back-to-school shopping, some consumers are still not finished buying everything on their lists, even though schools are back in session.

The New York Times reports that many parents are waiting to complete their shopping after classes begin so that their children can see what clothing trends will be popular this year. Instead of potentially buying items that might be not be considered cool, students want to wait to see what everyone is wearing so that they can then go out and purchase new clothes. Many retailers are trying to handle the late shopping by putting merchandise on shelves later than normal and extending back-to-school sales. However, some retailers told the source that shopping for the season has been better than the past couple of years and they expect it to stay steady even after school begins.

Online retailing has seen an increase in the amount of back-to-school shopping as consumers are increasingly using their smartphones and tablets to browse for and purchase items. Research by the National Retail Federation found that nearly 70 percent of shoppers will use their devices to buy back-to-school products.

Olympics help propel ecommerce in UK

Athletes were not the only ones seeing success during this summer's Olympic Games. Retailers throughout the country experienced an increase in both online and in-store purchases in the weeks leading up to and during the sporting event.

A recent study by Capgemini found that ecommerce rose 17 percent year-over-year, and the London Olympics played a large role in the increase. For the month of July, consumers in the U.K spent a total of £6.5 billion ($10.2 billion) in online purchases.

"Retailers, both online and offline, were offered a unique opportunity to build an international base of customers, so it will be interesting to see whether the U.K. successfully capitalized on the millions of additional visitors to Britain," says Chris Webster, head of retail consulting and technology at Capgemini.

Sports-related items also saw a boost in sales, both online and in brick-and-mortar locations. Marketing Week reports that many retailers across the U.K. have experienced increases in a variety of sports purchases by consumers, including bicycles, gym memberships and magazine subscriptions. Industry experts believe the uptick in store operations was due to shoppers being inspired by the London Games as well as marketing efforts put forth by sports retailers, states the source.

Luxury retail sales are steady despite slow recovery

Many sectors within the retail industry were negatively impacted by the recession. But as conditions begin to slowly and steadily improve, consumers are gaining more confidence about the future of the economy. This includes luxury shopping, as these retailers have reported better-than-expected numbers over the past few months.

According to The Chicago Tribune, fears about the current European economic crisis and fluctuations in the stock market did little to keep customers away from purchasing designer merchandise. Retailers such as Michael Kors and Saks Inc. have experienced strong sales throughout the year, and executives stated they did not have to markdown as many prices as anticipated. Many luxury stores are also making plans for expansion, as customers continue to buy designer items and accessories, states the news source.

This news comes along with the recent report from the Department of Commerce that retail sales throughout the country experienced an increase in July. The Wall Street Journal writes that there was a rise of 0.8 percent throughout the month. This follows three straight months of decline, including a decrease of 0.7 percent in June. Many sectors were impacted by the positive retail sales, including consumer electronics, clothing and ecommerce.

U.K. summer sales dampened due to large amounts of rain

It's no surprise that England gets a lot of rainfall each year. This normally isn't a problem, but British retailers are reporting that the weather has had a negative impact on summer sales throughout the country.

According to Bloomberg, many retailers stocked their shelves with summer items in preparation for the warmer season. However, the significant amounts of rain that fell this summer, which ended up being the wettest weather on record, resulted in consumers not buying the swim wear, outdoor furniture and other summer accessories that are normally purchased. Instead, retailers were left with an abundance of merchandise, forcing many to hold sales and offer discounts in the hopes of clearing out a majority of items to ready stores for the fall season.

"The weather has been volatile this year and last year, so rather than sitting back and saying it's tough we're trying to organize our supply chain and buying process to recognize this is the new norm," said Andrew Moore, managing director of clothing business George.

However, it's not all bad news for U.K. retailers. FXstreet reports that the Retail Price Index from National Statistics increased 0.1 percent in the month of July, even though experts anticipated it would decrease by 0.2 percent. July's percentage of 3.2 is up from June's total of 2.8 percent.

Retailers managing mobile technology within the store

Mobile devices provide a variety of benefits for consumers and retailers. Customers are increasingly using their phones to perform daily tasks, and they are even beginning to bring them into retail stores, whether to research more information or look up prices at another location. This is signaling a need for change within the retail industry, as in-store operations are starting to feel the impact from this trend. When it comes to shoppers using their mobile devices at brick-and mortar locations, merchants should step up their management efforts to ensure the best possible outcome for the store and the consumer.

Managing a new mobile strategy

There are several mobile retail technology solutions that can be used in the store, which could help businesses when developing a new method. Internet Retailer reports that many companies have already implemented these systems, as many are catching on to the increasing trend of consumers using their mobile phones. Although a retailer might have a fully operating and successful website for outside sales, it is still important for purchases to be made in the store. With the price transparency that comes with customers' mobile devices, coupled with the emergence of sales on the internet, in-store retailers will need to make changes and improvements in order to keep up and be successful in their market, writes Internet Retailer.

National Retail Federation to provide mobile research service

For retailers that want to stay on top of mobile trends and topics that are impacting the industry, the National Retail Federation (NRF) has announced that it is launching a service, titled Integrated Mobile Initiative (IMI). This new research arm will aim to keep retailers on top of the mobile aspects that can affect their businesses and the sector as a whole. This includes the opportunities and challenges that mobile technologies can present for the industry, as well as fostering the growth of retail companies all over the world.

"Retailers are inherently driven to stay ahead of the curve when it comes to their customers' demands, and today nothing is more important than mobile technologies that provide seamless cross-platform shopping experiences," said NRF's senior vice president of communities Vicki Cantrell. "As mobile rapidly changes both consumers' expectations and the overall shopping experience, the IMI will serve as the go-to source for information for retailers, their business partners, the media and interested parties across the world on the practical aspects of implementation and resources for mobile retailing."  

Olympics provide benefits for UK retailers

Although the Olympic team for Great Britain might not be at the very top of the medal count, British athletes have seen much success in their respective sports. Retailers are putting forth their best efforts to capitalize on this success, by participating in marketing and sales programs to draw in more customers.

According to Marketing Week, many sports retailers have experienced an increase in shoppers, both online and in the store. Sports like swimming, tennis and cycling have seen a rise in interest, as customers are buying equipment and athletic wear to be able to participate in these forms of fitness. One online retailer, Wiggle, which sells bicycles and associated equipment, has experienced a 71 percent increase in traffic on its website. Company executives say that over the past few weeks, bike sales have risen significantly.

The Olympics is leading the way for another trend in the retail world. Mobile payments is being tested out among athletes at the London Games, reports Investor Place. Competitors have been given Samsung smartphones that have payment capabilities through an already-installed application, and industry experts are waiting to see how the new purchasing trend will turn out. Many believe this testing phase will highlight the convenience as well as any problems that might arise for consumers and retailers, states the source.

Magic mirror will change retail shopping

An Intel scientist has designed a high tech mirror that will show consumers how clothing looks on them without having to try the garments on. Shoppers can simply stand in front of the LCD display and the technology will simulate their body type with how the fabric will fit based on the height, weight and measurements.

While the concept is about three to five years from becoming a standard, this could open the door for Intent to get into the retail market. Social media, 3-D printers and smartphone technology are already changing the retail industry, as consumers are beginning to adopt technological advancements such as mobile price comparisons and online rewards programs.

"The next five years will bring more change to retail than the last 100 years," Cyriac Roeding, CEO of Shopkick” told USA Today. Shopkick is a shopping app that is available at top retailers such as Target and Macy’s.

Kevin Sterneckert, a Gartner analyst, believes that big-box stores such as Old Navy will become testing centers with no physical merchandise. While this is just a speculation, it could help retailers stay competitive with online-only retailers.
As retailers start to adapt to the changing landscape, they might benefit from the retail merchandising solutions offered by Retail Pro.

 

College students still favor physical textbooks

Even through the mobile and internet markets are great purchasing, MSNBC reports that college students are still drawn to physical textbooks. While most publishers offer the choice for an electronic copy of textbooks, students would rather carry printed textbooks to the classroom and the library. This could be an indication to merchants that they need to continue maintaining their stocks of physical textbooks.

"We have found that digital textbooks are still not as popular with students," Charles Schmidt, a spokesman for the National Association of College Stores, told the news network.

The price of an e-book can be anywhere from 60-70 percent of a printed version. However, a poll from the NACS found that up to 74 percent of college students still like having a printed book in their hands. According to Schmidt, this might be because most e-books are just PDF files of the printed book and renting the book is much cheaper.

While most students are used to handling content online, having a physical book that can be written on or flipped through is something that most students are willing to pay more for. Schmidt also told MSNBC that most professors are not comfortable with their students only having the e-book version for their classes.

As college bookstores gear up for students coming back to school this fall, they could see a benefit in utilizing the software solutions offered by Retail Pro.

July retail sales better than expected

After a less-than-stellar June sales report, retailers across the nation performed better than expected, as many saw increased revenue from summer and clearance sales.

According to Retailing Today, research from Thomson Reuters revealed that 75 percent of retailers, including Limited Brands, Costco Wholesale Corporation and Gap Inc., experienced a rise in sales, as many stores turn their efforts from summer sales to the upcoming school season shopping. Although the back-to-school campaigns are considered the second-largest period for retailers after Christmas, July is usually noted as a transitional month, as sales are normally lower than other times of the year. However, with the recent increase in numbers, experts believe the back-to-school season will be boosted by recent positive sales.

"Hot weather and summer clearance, coupled with some newness in stores in the back half of the month, is leading to a nice upside heading into back-to-school," said Ken Perkins, president of RetailMetrics. "Retailers were pretty aggressive with promotions, trying to clear out merchandise."

June sales were not as profitable, as many retailers reported their worst figures in three years, states MarketWatch. Out of 20 retailers that reported their June numbers, approximately two-thirds did not exceed their estimates. 

Back to school spending expected to increase this year

Summer is almost over, and with that comes parents and children rushing into stores to stock up on back to school supplies for the upcoming academic year. Although the recent economic recession put somewhat of a damper on sales in all industries, school supply retailers were also negatively impacted, as many families cut back on costs. However, industry experts anticipate that that will change this year, as spending for the back to school season is expected to increase.

Parents increasingly spending on supplies

According to recent research from the National Retail Federation (NRF), the total amount of back to school spending this year is anticipated to reach $30.3 billion for elementary, middle and high school students. When combined with the supplies purchased for college students, the total is estimated at $83.8 billion. As the economy steadily improves, parents will be purchasing items that their children might not have had last year, the report states.

Average spending for each student in grades K-12 will reach $688.62. This is a significant increase from 2011's average, which was $603.63. Parents are expected to spend more on clothing this year, with the average amount at $246.10. Shoe purchases will come in around $129.20 for each child. Electronics needed for school activities will see an increase from last year, as 59 percent of parents say they will buy these products, compared to 51 percent last year. When it comes to supplies such as notebooks, writing utensils and bookbags, the average spending amount is $95.44, says NRF.

"When it comes to their children, there’s nothing more important to a parent than making sure their children have everything they need, even in a tough economy – and especially when it comes to back-to-school shopping," said NRF president and CEO Matthew Shay.

Positive July sales help boost back to school spending

Clothing retailers did better than anticipated during the month of July, according to data from Thomson Reuters. Many experts believe the uptick in sales at these stores signals a rise in back to school clothing spending. The purchasing of necessary school supplies is the retail industry's second largest selling period after the Christmas holiday. Many retailers are now readying their stores in preparation for the expected influx of parents and children. Ken Perkins, president of Retail Metrics, believes that based on the information of better-than-expected sales in July, retailers will be stepping up their efforts to bring in more shoppers, leading to optimism within the industry.

"We are far more encouraged about [back-to-school] than we were coming out of June," Perkins said.