While the payroll tax increases, which were implemented at the beginning of 2013, are hitting American consumers hard, they are not the only group being forced to make changes to their finances. The retail industry is also being impacted by the changes, as customers are cutting back on their spending, forcing merchants to revise their revenues.

The National Retail Federation reports that approximately 73.3 percent of American consumers are reducing their spending, as they now have less take-home pay from their wages. Some of the strategies that shoppers are using to save money include visiting discount stores for better prices, foregoing entertainment expenses, cutting back on vacation and travel plans and seeking out deals and coupons from retailers.

These methods are sure to be felt within the retail industry, and many companies are revising their own spending levels to cope with the payroll tax impact. According to The Wall Street Journal, some merchants are readjusting their prices to make them more attractive for shoppers. Also, big name brands such as Burger King, Walmart and Kraft are revamping their marketing strategies and decreasing their sales forecasts. 

It is no longer acceptable to only operate one channel for retail operations, as consumers are demanding to do business with brands through brick-and-mortar locations, websites and mobile platforms. Merchants are aware of the importance of multichannel options, and many are implementing solutions to provide these for shoppers if they haven’t already done so. For the companies that have yet to move into the multichannel realm, now is the time to do it, as customers may not be interested in brands that do not offer merchandise through a variety of sources. By adopting new channels and expanding product offerings through the web, retailers are sure to see success in the near future, as consumers will increasingly interact with businesses in a variety of ways.

Use in-store and web elements together for success
Internet Retailer reports that a study by PricewaterhouseCoopers (PwC) revealed that many consumers have a “favorite retailer” that they frequent for their shopping purposes. The research found that merchants that operate both brick-and-mortar locations as well as ecommerce and mobile platforms are more likely to garner retention and loyalty, as 58 percent of customers prefer to do business with brands that offer multiple sales channels. In addition, those respondents stated they are willing to spend more money with retailers that give them the options they are looking for. On the other hand, the study also discovered that consumers have a select few brands they shop with, meaning that effective marketing and innovative products are key to attracting patrons, the source notes.

“It’s a bit of an all-or-nothing proposition,” stated the PwC report. “Those retailers that become multichannel favorites can expect that their online and physical operations to successfully grow in parallel. But others will find that increasing the number of channels won’t necessarily enlarge their customer base.”

Websites can serve as testing platforms
There are other ways that retailers can see success in multichannel operations, one of which is using their websites to test out new products and see how customers react, according to The Age. The merchandise offered in stores does not have to the be the same as what is provided through the web, so with newer items, merchants can offer them online and see how well they sell or test pricing strategies.

The success of these products can be gauged through online sales, the source writes, and then owners can make the decision on whether to include the merchandise at their brick-and-mortar locations. In addition, customers are more willing to offer feedback through the internet, giving businesses another way to measure interest and pinpoint areas for improvement.

As consumers increasingly go online to browse for and purchase products, it may seem that retailers no longer need to put a lot of attention on the experiences they offer at their brick-and-mortar locations. However, this is certainly not true, as a majority of shoppers still believe that their visits to stores are important, and they are not looking to replace these experiences with technology such as social media and mobile. Of course, these platforms and devices will play a big role in retail operations in the coming years, but focus does not need to be taken off of in-store engagement. In fact, research has found that merchants can use technology to enhance the experiences they provide for their customers in their storefronts.

Decline of retail stores is a myth
A recent report by PricewaterhouseCoopers pinpointed some of the myths that are plaguing the retail industry today, one of which is that retail stores are declining as consumers begin preferring technology to buy merchandise and interact with brands. The study revealed that this belief is false, as 45 percent of customers still visit retail brick-and-mortar locations daily or weekly. Social media is seen as the biggest threat to physical storefronts, but the research discovered that while 49 percent of respondents use the platforms to look up items and find information about brands, only 12 percent actually do any shopping through the sites.

“While many forecasts point toward devices and social media dominating in retail, companies today need to utilize their multiple channels to engage with consumers and use social media as a marketing and communication tool to create value,” said Susan McPartlin , PwC’s U.S. retail and consumer sector leader. “Our report finds that the physical store remains the centerpiece of the purchase journey, while devices are used significantly for product research and deals.”

Other technology draws in customers to stores
Social media platforms are not the only technological tools that retailers can use to attract customers to their stores. The National Retail Federation (NRF) states that elements such as interactive displays and free WiFi internet can entice consumers to visit. Also, using mobile devices to train employees on how to utilize the gadgets to help shoppers on the sales floor boosts efficiency and provides faster transactions through mobile POS software.

As more consumers are taking to the internet to research, browse and purchase products from retailers’ websites, many merchants may be looking for ways to drive foot traffic into their brick-and-mortar locations. Fortunately, there are several strategies that businesses can follow to accomplish this goal.

Independent Retailer offers some suggestions for companies wanting to bring in more customers into their stores. One method is to offer more personalized and targeted communications. Sending shoppers information about upcoming in-store sales of their favorite items based on their purchasing histories is one way to do this. In addition, providing self-service checkout options is another tactic that can prove successful for retailers. This technology gives customers more convenience, which ultimately increases satisfaction. Mobile shopping options are steadily gaining ground within the retail industry, and if companies want to stay competitive in the near future, they may want to consider implementing these aspects, the source writes.

Cummins Allison also has some recommendations for boosting foot traffic, one of which is focusing on improving consumers’ experiences by gathering feedback about offerings and services they would prefer to see in brick-and-mortar locations, and then working to incorporate those elements into daily operations.

There are still merchants who operate solely through their brick-and-mortar locations, and there are businesses that maintain only websites. However, the majority of retailers use both methods for providing their products and services to consumers. Industry experts believe this is where the future of the industry lies, and failing to maintain stores and ecommerce platforms could result in poor sales and decreased customer satisfaction.

According to 1to1 Media, retail analysts gathered at the annual National Retail Federation conference last week and discussed their views on what is in store for the sector in 2013. Many stated that operating both brick-and-mortar locations and websites is key to success, as consumers are increasingly looking for multichannel options to browse for and purchase retail products. In addition, by managing these two strategies, companies are able to more effectively engage customers and build upon relationships through targeted communications and offerings.

Mobile commerce is further helping retailers boost their multichannel strategies and accommodate smartphone-carrying consumers, the source writes. Speakers at the conference noted that mobile options are not only for shopping, as they also give businesses tools for reaching out to customers and delivering content that is relevant to their needs. Applications and social media are some components which are boosting mobile engagement.

With the start of 2013, retailers worldwide finally got a minute to take a breath after a hectic and chaotic holiday shopping season. The new year brings with it the time to go over the strategies used during the holiday rush to determine which methods worked and which ones did not. These successful tactics, along with new ones, can be used to combat the sluggish sales that usually accompany the first few months of each year. To see revenues and business increase, merchants can use several techniques to draw in customers exhausted by holiday shopping and keep them coming back.

Boost sales slump with special deals
Business2Community reports that many companies see the dreaded slowdown in retail sales throughout the first of the year, and a lot are not sure of what they can do to prevent it. However, the source suggests that by developing effective marketing plans, merchants can draw in customers who would otherwise refrain from purchasing items and services so soon after the holiday season. Retailers can study consumer data such as purchasing history and preferred products to determine what items are most popular and then offer them in stores and on websites. This data can easily be generated from holiday sales, the source notes.

In addition, businesses can create specialized offers and send out coupons that can be redeemed at brick-and-mortar locations and online. These deals should be as targeted as possible, as they will appeal to shoppers' needs and wants, increasing the chances of them returning for future purchases. Spending more time on designing emails that announce sales and discounts will be more interesting to customers and encourage them to take part in the offering, the source writes.

Make online shopping easier
Besides creating attractive and enticing messages and emails, retailers also need to focus on making online shopping experience easier for shoppers if they want to increase retention and boost first-of-the-year sales slumps. Practical Ecommerce offers some suggestions for merchants looking to enhance website experiences for consumers, including making it easier to return products. The difficulty of sending back items is a main reason why customers may not purchase from online retail sites, so facilitating the process can result in higher satisfaction and revenue.

The source also recommends that businesses keep records of past customer interactions and transactions. This gives retailers more insight into what products are most popular as well as future items shoppers may be interested in. 

For the 2012 holiday shopping season, retailers across the United States brought on extra employees to help with the influx of customers hitting stores and websites. These staff members were hired to answer consumer inquiries, process payments and returns and manage ecommerce platforms for internet-connected shoppers.

The Los Angeles Times reports that research from Challenger, Gray & Christmas found that in October, November and December, retailers brought on approximately 728,000 new employees for the holiday shopping rush. This was the highest seasonal employment level in six years and it represented a 10.3 percent jump in hiring from the same time last year. Hopefully, many of these staff members will be kept on payrolls past the holidays, but that depends on retailers' needs in 2013, the source notes.

This significant boost in hiring could have been one of the contributors to the strong retail sales numbers for the holiday season. CBS News reports that many businesses experienced solid sales gains during the last part of 2012, according to research by Retail Metrics. The study found that for 20 retailers, same-store sales increased by 4.5 percent from the same time last year.

When running an ecommerce website, there are many rules and regulations that internet retailers must follow. Whether a business operates solely online or has a website in conjunction with brick-and-mortar locations, merchants want to ensure they remain compliant with all federal laws.

There are new regulations that ecommerce retailers need to be prepared to implement. According to Internet Retailer, the Federal Trade Commission (FTC) recently approved amendments that require internet merchants to display either EnergyGuide, Lighting Facts or an FTC-provided icon that shows online consumers the full energy disclosure information for a variety of products, including refrigerators, air conditioners, dishwashers, heat pumps and service lamps, among other related items.

Additionally, the FTC amendment states that these icons will need to be displayed in an easy-to-see location on webpages near the products' prices.

"Nobody should have to wade through a labyrinth of links and tabs to find out how much extra they'll have to pay to use a product or what its environmental impact will be," Jon Wiener, associate attorney for law firm Earthjustice, told the source. "The commission's decision ensures that online consumers will have access to the same information as shoppers at brick-and-mortar stores."

Retailers throughout the country saw an influx in the number of consumers hitting their stores and websites over the past few months. However, there are signs that sales during the holiday season were not as strong as were hoped for, although no official numbers have been released.

Fox Business reports that according to the latest Johnson Redbook Index, retail sales increased by 0.1 percent on December from the previous month. Analysts had forecasted a 0.2 percent rise. Additionally, the seasonally adjusted sales rose by 2.5 percent from the same time last year, and it was expected that figure would be 2.6 percent.

Despite these positive numbers, retailers nationwide are not optimistic about the outcome of 2012's holiday season sales. Retail Metrics reports that the decrease in confidence could be due to American consumers being concerned about the fiscal cliff negotiations that were still in the process of being determined over the past few weeks. Also, colder weather and a lack of effective marketing campaigns could lead to dismal sales. If the sales figures are less than were expected, retailers could see one of the weakest holiday seasons since 2008.
 

Social media networks like Facebook and Twitter have allowed people to connect with others all over the world. Now, the platforms are serving as marketing and communication tools for businesses.

According to a recently released study by Acquity Group, retailers are not paying enough attention to social media, which is resulting in the loss of customers who like to use the networks to interact with brands. The research revealed that when it comes to the five major platforms – Facebook, Twitter, Instagram, Pinterest and YouTube – only 12 out of the 50 merchants analyzed had a presence on all of the sites. 

"The important takeaway for brands is to avoid haphazard or sporadic use of social media," stated Jay Dettling Acquity's executive vice president. "When a new social media channel is introduced, brands need to take the time to analyze the potential impact and return, and develop a solid strategy from there."

The Journal and Courier writes that brick-and-mortar retailers can benefit from social networks by offering deals and promotions on the sites to entice customers to visit their stores.