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Main Street Retail and the World

Main Street Retail and the World. Just 16 years into the 21 st century, retail is only becoming more of a global enterprise. As PwC stated in its Total Retail Global Report, “…what Chinese consumers are doing today, shoppers in the rest of the world will be doing in the not-too-distant future.”

johnclifford
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Main Street Retail and the World

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  1. Main Street Retail and the World • Just 16 years into the 21st century, retail is only becoming more of a global enterprise. As PwC stated in its Total Retail Global Report, “…what Chinese consumers are doing today, shoppers in the rest of the world will be doing in the not-too-distant future.” • The February 2016 PwC report that surveyed consumers on 5 continents found that TV and in-store are the dominant methods for purchase research in 11 product categories, with TV first in consumer electronics and computers and grocery first in-store. • In-store was the dominant purchase method in all the 11 categories, except for books, music, movies and video games, where online via a PC was the preferred channel.

  2. Retail Drives US GDP • Despite a contentious presidential campaign, volatile oil prices and global conflicts, consumer spending continues to drive America’s economic engine, generating approximately 65% of total US GDP during Q2 2016. • Although 2016 retail sales did not start well (January, -0.5%; February, +0.3%; and March, -0.3%), it rebounded nicely during Q2 2016: April, +1.3%; May, +0.2%; and June, +0.8%. • With better-than-expected employment growth, new home sales and back-to-school purchasing levels, the National Retail Federation increased its retail growth forecast for the year to 3.4% from an earlier 3.1%.

  3. The Ever-Expanding E-Commerce Marketplace • Although total e-commerce sales increased 14.6% during 2015 to $341.7 billion and was responsible for 60.4% of total retail sales growth, it still only accounted for 7.3% of all retail sales, excluding foodservice, restaurant and bar sales. • Delete automobiles and fuel, which are not typically purchased online, and e-commerce’s share of total 2015 US retail sales increased to 10.5%. • During the 2015 holiday shopping season, US e-commerce sales totaled $79.01 billion, a 13.4% increase. For the 2016 holiday shopping season, e-commerce sales are forecasted to increase 13.3%, to $89.52 billion.

  4. Zealous Z Shoppers • Macro data and outlook are revealing, but retail is serving and satisfying one customer at a time. The good news is that an iModerate study found that Generation Z (14–19 years of age) shoppers said it was important for brands to have a physical location. • According to the iModerate findings, Generation Z teens feel more comfortable about brands and their products when they can try various sizes and styles and experience samples and demonstrations. • A May 2016 survey from Interactions of more than 2,000 Generation Z Americans found that 64% prefer to shop in-store than online, 89% are price-conscious and 75% prefer shopping at retailers with an engaging in-store experience.

  5. Marketing to Mom • Women, and especially mothers, continue to control the majority of US household spending, so it is very important for retailers to understand today’s mothers and how to market to them. • A great majority of mothers, regardless of the age of their children, engage in other activities while using media: with children 5 and younger, 87.4%; with children 6 to 12, 85.2%; and with children 13 to 17, 84.9%. • Mothers of children 5 years and younger are more likely to research products and make a purchase on a smartphone and read product reviews to decide which products to buy than mothers of teens.

  6. Advertising Strategies • Gain greater trust with retailers by not only helping them determine the best media mix for their advertising dollars, but also offering consumers a seamless shopping experience via all the channels and devices – in-store, online, PCs and mobile – they choose. • Even the smallest retailers must offer free delivery; buy online, pick up in-store; and similar services as well as equipping salespeople with tablets for in-store ordering to compete with e-commerce retailers, and then promote these services in their advertising campaigns. • Today’s consumers want a true shopping experience, so retailers must develop and promote in-store events and other experiential activities that attract shoppers. Retailers can no longer rely solely on coupons, discounts and standard promotions to remain competitive.

  7. New Media Strategies • Smaller retailers can use email, social media and the mobile channel to engage with consumers through polls and surveys to determine what kind of products and special offers will attract them, which also gives them a voice in shaping the shopping experience. • Retailers of all sizes must move quickly to understand and adopt new technologies, such as beacons, geolocation and in-store ordering kiosks, and use them to generate maximum foot traffic and interest in daily, even hourly, specials. • Retailers should give their younger staff members who understand what kind of video content resonates with younger adults the opportunity to create video messages to engage with their regular customers to maximize retention.

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