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Retailer Seminar: Optimize Your Profit andProductivity in the Shopping Center EnvironmentOctober 23 – 24, 2014 University of Florida, Orlando Campus
DEBORAH WEINSWIGExecutive Director-Head, Global Retail Research and Intelligence
Fung Business Intelligence [email protected] 646.839.7017
www.deborahweinswigresearch.com
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The Issues
• Foot traffic: -3.6% YoY in U.S. (Sept.)
• U.S. Q2 e-commerce sales: +15.7% YoY (June, estimates)
• Thinking about Holiday 2014, just remember Holiday traffic in 2013 was -14.6% YoY
• Worldwide smartphone sales is expected to grow 11.5% CAGR from 2014 – 2018
• M-commerce exploding: 1/3 of Holiday 2013 on mobile, up from 20% in 2012; but social commerce did NOT as it was flat in 2013 at 2%
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Physical Store Traffic is Falling
Sales Traffic Trans. Conv. %Return ATV SPS
September
-2.4% -3.6% -3.6% 0.4% -1.1% 1.4% 1.5%
August -4.0% -7.9% -5.9% 0.4% -1.0% 2.0% 4.2%
July -4.5% -7.8% -9.5% -0.05% -1.1% 6.7% 3.5%
June -5.8% -10.8% -12.0% -0.1% -0.8% 7.6% 5.5%
May -5.7% -8.0% -11.6% -0.2% -0.6% 7.1% 2.6%
(% points) (% points)
Source: RetailNext, Comprehensive In-Store Analytics
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Conquering the Omni-channel Arena
• Retailers want a "single customer interaction platform" but have almost no idea how to get there
• Creating a single brand identity across channels is the most important goals for retailers
• Retailers should designate a single owner of the customer experience journey
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The Future of Retail
• Digital information is influencing more than 50% of our purchases
• Retailers can create value by integrating retail channels with social media, online, and mobile channels
• Omni-channel shoppers spend 50% more than single channel shoppers
• O2O online driving offline transactions
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Big Trends Changing Retail Marketing Today
• Human connections are the only real metric for building institutional trust
• Better storytelling is the secret weapon for when products are easily replicated
• The best value from digital tactics comes by educating instead of trying to have a "dialogue"
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The Future of Retail Marketing
• 77% of consumers prefer email for permission-based promotional messaging
• 39% of retailers used in-store signage to convert customers to digital
• 44% of retailers do email acquisition at point-of-purchase
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Recasting the Retail Store in Today's Omni-channel World
• The majority of consumer shopping time is still spent in store at 61% per AT Kearney
• Consumers spend more money when shopping in brick-and-mortar stores
• There are multiple ways to research, verify, and purchase products
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Physical Stores Maintain Their Importance
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Converting Online Browsers to Buyers
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What is Cyber Crime?
• Crime committed using a computer and the internet to steal a person’s identity or illegal imports or malicious programs
• Cybercrime is nothing but where the computer used as an object or subject of crime
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Types of Cyber attacks, by percentage (source- FBI)
•Financial fraud: 11%
•Sabotage of data/networks: 17%
•Theft of proprietary information: 20%
•System penetration from the outside: 25%
•Denial of service: 27%
•Unauthorized access by insiders: 71%
•Employee abuse of internet privileges: 79%
•Viruses: 85%
Types of Cyber Crime
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Cyber Security
• Cyber security will defend us from critical attacks
• It helps us to browse the safe website
• Internet security process all the incoming and outgoing data on our computer
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How Do Retailers CompeteUS Customer Satisfaction Index 2013
COMPANY SCORE
Amazon 88
Nordstrom 83
Kohl’s 81
Dollar Central 80
JC Penney 79
Target 77
Macy’s 76
Walmart 71
FY 13 (ended January 2014) EBIT Margins
As of Oct. 22, 2004Source: SPCapitalIQ
FY14 P/E 122.0X 13.6X 13.0X 15.2X
FY15 P/E 67.3X 12.3X 11.3X 14.3X
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Communication App
• Personalization Engine
• Making Shopping Fun Again
• Driving Traffic to the Stores
• Ability to offer Inspiration
• Forming a Community
• Inexpensive Marketing and Communication Tool
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Q & ADEBORAH WEINSWIG
Executive Director-Head, Global Retail Research and IntelligenceFung Business Intelligence Centre
[email protected] 646.839.7017www.deborahweinswigresearch.com
