Boosting retail store operations and customer retention in 2013

With the coming new year, retailers are wrapping up their 2012 operations and turning their attention to how they can succeed in 2013. Focusing on customers and what they are looking for in terms of retail shopping experiences can give businesses the boost they need to keep thing running smoothly over the next 12 months.

For retailers looking for ways to keep shoppers happy in 2013, Inside Retailing offers some suggestions. For example, the source writes that sales associates should be personable and try to connect with customers in a more engaging way, instead of offering scripted communications. Developing ways to stand out from competition by providing distinctive products and services is another method that can be used to draw in consumers.

The source also notes that constantly revisiting management and operations strategies for marketing and customer service can help retailers pinpoint areas where improvement is needed. This step can also include feedback provided by shoppers, as this give companies more insight into what is wanted and how they can offer these elements. In the end, making transactions and browsing easy, both on- and offline, can keep customers coming back.

Retailers cater to consumers’ senses to draw them in

Everyone knows when the holiday season is here – the smells of fresh-baked cookies and fir trees waft through the air and themed music is constantly playing. Retailers are using these tactics to bring in consumers to their stores, hoping it will give their revenues a boost.

Besides using attractive store displays and decorations, many businesses are trying to put shoppers in the holiday mood by playing popular themed songs and making sure the smells of live fir trees is apparent in their storefronts, reports the Raleigh News & Observer. By using these strategies, merchants are hoping to influence their customers' purchasing habits and how long they stay in stores. Additionally, they want to improve the overall experience as well.

"We're trying to make it a magical experience; when you walk in it really puts you in the Christmas mood," said Charles Vaughan, manager Durham, North Carolina-based Morgan Imports. "When you target all of the senses, you are really able to get that 'wow' feeling."

Retailers are also turning to timely discounts and offerings to draw in consumers, according to The Associated Press. This includes layaway options, extended open hours, and free shipping to customers' homes.

Fast shipping the focus of web retailers as holiday season winds down

There are many ways in which brick-and-mortar and ecommerce retailers are alike, and there are others in which they are different. As the holiday season comes to a close, these two types of merchants begin competing against one another, as both scramble to bring consumers in their stores and on their sites.

One method that web retailers are using to attract shoppers is by offering fast shipping, The Wall Street Journal reports. This is being done to accommodate last-minute customers who are looking for quick ways to get the items they want. The news source highlights one example in GSI Commerce, which operates the online shipping of more than 70 brands. The company is promising to allow web shoppers to purchase items as late as 11 p.m. on December 22 and receive their products two days later on Christmas Eve.

Although it may be too late for this holiday season, retailers can boost their revenues and customer retention rates by offering free shipping for web consumers. According to a study by ShopRunner, customers are more likely to purchase items from businesses that provide the free option.

Bad shopping experiences turn customers away from retailers

Offering poor customer shopping experiences, both in stores and online, is one thing retailers want to avoid. However, this aspect of operations is not always easily overseen, and many consumers will avoid doing business with merchants that provide unsatisfactory interactions.

According to recently released report from the Temkin Group, the retail industry is one of the top sectors that has poor consumer experiences, along with TV and internet service providers. Of the customers surveyed, one-third stated they would completely stop doing business with companies they had a bad experiences with. When it comes to unsatisfactory service recovery efforts after poor experiences, nearly three-quarters of respondents would never purchase items from businesses again. On the other hand, the research found that of the industries analyzed, retailers are less likely to permanently lose shoppers due to bad interactions.

To help increase customer satisfaction and experiences, Inside Retailing recommends that businesses offer more personalized interactions as well as focus on having open communications with shoppers. This can be accomplished by being transparent about services and products, and providing deals and discounts based on consumers' needs.

Retailers stepping up their hiring for the holidays

Extra hands are always needed in retail stores to help throughout the holiday season, and businesses are wasting no time in bringing on temporary employees to deal with the rush of customers. These staff members are valuable for answering shoppers' questions and processing transactions quickly.

The Motley Fool reports that according to a recent study by Challenger, Gray & Christmas, retailers throughout the country added 465,000 seasonal employees during the month of November. This represents a 20 percent increase from the same time last year. It is also the largest number of new temporary workers ever put on retail payrolls for the month. Analysts forecast that the hiring boosts will continue in December, which could result in a record season when it comes to employment gains, the source states.

To best prepare temporary staff members for the flood of customers during the holidays, retailers will want to use a few strategies to get these workers up to speed, writes 1to1 Media. The source suggests that businesses ensure that new hires are interested in selling products and helping shoppers. Additionally, having existing employees show seasonal personnel the ropes will make them feel included.

UK retailers could see revenue losses during holidays

Retailers throughout the United Kingdom have been struggling over the past few years to maintain sales. There might be hope for big gains during the holiday season, but some economists believe that businesses could instead see revenue losses over the next few weeks.

According to recent research by Netsuite, if retailers fail to capitalize on sales opportunities or do not offer the products and services consumers are looking for, they stand to lose approximately £147 million ($239 million) during the holiday season. Management Today reports that competition is another factor that could result in decreased revenues, with a forecasted total of £1.7 billion ($2.7 billion) being lost to competitors. This loss can come from shoppers taking their business elsewhere from retailers that are out of stock of the most-wanted products.

To combat this revenue decline, many U.K merchants are developing same-day and two-hour delivery services that they plan to offer over the coming year, writes Logistics Manager. While this may not prevent the losses that could occur during this year's holiday season, it will certainly help retailers with their customer retention and satisfaction efforts, which ultimately will boost revenues in 2013.

November sees 465,500 seasonal retail jobs added

Retailers across the country added a record number of 465,500 seasonal jobs to their payrolls throughout November, the largest amount of temporary workers that the month has ever experienced. Businesses brought on these additional employees to help with the holiday shopping rush, and more hires are expected to take place in December.

The Dallas Morning News reports that research from Challenger, Gray & Christmas Inc. revealed that approximately 465,500 retail seasonal positions were created in November, representing a 21 percent increase from the same time last year. When coupled with the temporary jobs added in October, the total amount of seasonal workers now stands at 610,700. Analysts expect that this year's holiday hiring numbers will surpass last year's, which saw around 660,200 temporary jobs added to retail payrolls.

Further good news – for both businesses and temporary workers – is the fact that many of these seasonal positions could turn into permanent jobs, according to WSAV-TV. The news source spoke with retailers in the Savannah, Georgia, region, and most said they will be doing everything they could to offer their holiday employees full-time positions once the shopping frenzy is over. 

Retailers breathe sigh of relief as LA port strike ends

This is possibly one of the worst times for imported merchandise shipments to be delayed, as retailers are stocking their stores with items for the holiday gift giving season. However, two of the nation's busiest ports, in Los Angeles and Long Beach, California, were blocked by a workers' union strike. Fortunately, the week-long strike recently ended, and retailers are hoping they can get their holiday sales back on track.

According to Consumer Affairs, many merchants were worried throughout the eight-day blockade, which started after port workers discovered their employers had been outsourcing administrative positions to lower-wage employees. During the strike, approximately $1 billion a day was being lost by staff members and businesses that rely on the dock for incoming merchandise. The National Retail Federation stated that the strike was having a significant negative impact on retailers and their holiday season efforts.

Both ports reopened after eight days, as union workers reached a deal with their employers, reports USA Today. Businesses have agreed to drastically reduce their outsourced jobs along with modest rises in wage and pension benefits for staff members.

Canadian retailers provide productivity boost for nation’s economy

The Canadian economy has been slowly recovering from the recent recession and many businesses are getting back on their feet after suffering financial blows which resulted in employee reductions and severe cost cutting. However, the nation's retailers have been helping conditions get back on track, as a recent study highlighted the importance of these merchants for Canada's productivity.

The Ottawa Citizen reports that according to a report by Deloitte, productivity throughout the country grew an average of 0.8 percent between 2000 and 2010. The main contributor to this increase was the retail sector, as Deloitte revealed that these businesses increased their productivity by 3.4 percent between 2000 and 2008. Authors of the study state that with a lack of government protection and the risk of failing at their ventures, Canadian retailers are required to develop innovative products and work harder to beat out the competition. These are some of the elements Deloitte believes led to the boost in the sector's productivity, the news source reports.

Unfortunately, retail sales throughout Canada increased only slightly for September, which are the latest results available from Statistics Canada. Bloomberg Businessweek writes that economists had predicted higher sales gains than the 0.1 percent growth that took place throughout the month. 

Boosting retail sales with enticing storefronts

Although much attention lately has been put on the emergence of online retail, there are still many businesses that are aiming to draw in customers to their brick-and-mortar locations. A few ways that retailers can do this is to spruce up their storefronts by designing attractive window displays and making sure their sales floors are clean, organized and easy to navigate. Unfortunately, there are some merchants that are failing to do this, and many have seen sharp decreases in the number of shoppers coming in their doors. To prevent this, companies need to put more focus on frequently updating their storefronts and incorporate elements that are attractive to consumers.

It's all about cleaning up

A clean appearance is extremely vital in the business world. Just ask any job applicant who has ever been on an interview. The same is true when it comes to retailers, as their storefronts act as the faces they present to consumers. Dirty, unattractive and outdated elements within brick-and-mortar locations can easily turn customers off from purchasing items. There are many methods that companies can follow to ensure their stores are enticing to shoppers, according to Independent Retailer.

The first aspect that businesses need to focus on is cleaning. This includes making sure there is no trash littering sales floors or other areas, as well as the sidewalks and other platforms right outside of the store's doors. The source suggests that retailers quickly replace broken or outdated signs, both inside and outside. Lighting plays an important role for brick-and-mortar locations, and companies should ensure they have adequate elements that show off their merchandise. This can help to draw in consumers who are passing by.

Expanding windows is another strategy that can drive up business, states the news source. By having larger space toward the front of stores, retailers have more room to advertise their ongoing discounts and show off their products.

Physical locations not decreasing in importance

While many shoppers these days are hitting the internet to buy retail goods, it doesn't seem as though brick-and-mortar locations are decreasing in popularity. The recent Black Friday weekend is a good example of this, as research from ShopperTrak revealed that there were more than 594 million store visits between Thanksgiving Thursday, the day that retailers opened their doors, and Sunday, when Black Friday deals officially ended.