The e-commerce technology company announced on Monday a new Seattle location, Amazon Go, that has no registers. Instead, shoppers scan into the store with their free Amazon Go app, shop as normal, and leave the store with the items billed to their Amazon.com account.
While some stores have used a wedding-registry technique to allow this kind of shopping, Amazon takes it one step further. Using computer vision — the kind of technology that lets self-driving cars “see” — the store recognizes the user, making it unnecessary to individually scan items.
According to the Seattle Times, the 1,800 square-foot store, featuring ready-to-eat meals and snacks, is open to Amazon employees participating in a testing program. The store will open to the public in early 2017....
Jeff Domansky's insight:
Amazon is now testing three different types of retail – bookstores, pickup/drive-through and now, an innovative no cashier, no checkout, no lineups, convenience store. Retailers look out!
Many people can envision a new kitchen, but few can actually visualize it – not correctly anyway. That island ends up taking more space than you thought, and the refrigerator door opens right into the entranceway.
So Lowe’s turned to virtual reality. It created the Holoroom, its self-described “digital power tool for kitchen and bath design.”
Launched in November 2015, the Holoroom enables customers to design their dream kitchens or bathrooms on an app, and then, with virtual reality goggles such as Oculus Rift or Google Cardboard, virtually step into the design.
With this technology, Lowe’s is literally extending the experiential phenomenon of virtual reality from a household word to a retail one. It is not alone. While augmented reality and virtual reality (AR/VR) feel a little futuristic for commerce, big-name retailers are testing the technologies in ways that appear surprisingly simple and adaptable. If these efforts continue, consumers will increasingly come to expect them to aid their purchasing....
Jeff Domansky's insight:
Augmented and virtual reality may feel a little futuristic for today’s retail aisles, but big-name brands are testing it in ways that appear surprisingly simple and adaptable. If these efforts continue, consumers will increasingly expect it.
Both current and former customers of the outdoor-clothing company Patagonia, for example, are more likely to consider themselves quite knowledgeable when compared to other shoppers, yet less equipped with social skills than the Lord & Taylor crowd. People who shop at Hot Topic, which caters to a younger, more alternative demographic, see themselves as highly imaginative, while patrons of Jos. A. Bank, which sells men's suits and business casual attire, see themselves as leaders.
Overall, these distinct personality types reveal the power of marketing, if done right.
One report anticipates that the retail industry alone will spend $15.09 billion on digital ads in 2016, followed by $16.95 billion in 2017 — a 12% increase. While it's important to know the best location to place an ad, knowing the personality of your intended audience is just as crucial....
Jeff Domansky's insight:
There are potential strategic marketing advantages within the personalities of retail brands.
Malls are lumbering, claustrophobic dinosaurs, while anchor stores like Macy's and Kohl's are shuttering hundreds of locations. Fresh Direct and Peapod make it easier and quicker to stock a cupboard than wading through the jam-packed neighborhood Kroger, and Amazon and eBay and Overstock sell, well, everything.
Who needs retail anymore?
In fact, 71 percent of U.S. consumers say they still prefer to buy from physical stores even if the same products are available online, according to a recent TimeTrade survey, which also found that 85 percent like to shop in stores because they say they want to "touch and feel" items before buying them.
Online shopping accounts for only about 9 percent of total consumer retail spending, according to the most recent quarterly figures from the U.S. Census Bureau. But make no mistake—everyone from retail behemoths to specialty boutiques is feeling the pressure to adapt more seamlessly to the digital world, to bring in that all-important foot traffic and to deliver an experience that consumers can get nowhere else....
According to a recent survey looking at consumers’ attitudes toward retail technology, omnichannel personalization solution RichRevelance found shoppers are still not comfortable with all technology has to offer the retail industry.
Polling more than 1,000 consumers, the “Creepy or Cool: 2016 Consumer Survey” offered insight into the types of retail technology that appeals to consumers and what turns them off.
Sixty-seven percent of the survey participants labeled facial recognition technology as creepy when asked about it being used by retailers to direct salespersons toward high-value shoppers. (An even higher percentage of Millennials — 71 percent — said they found it creepy.)...
Jeff Domansky's insight:
Research says shoppers still like coupons, especially digital coupons, but facial recognition is "creepy."
In looking to solve this problem and figure out exactly what it is that is convincing consumers to buy online, BigCommerce commissioned a study into the modern consumer journey. We learned how, when, why and where U.S. consumers buy today –– and more so, what is stopping them from doing so.
This information is incredibly important for retailers looking to sustain and grow their revenue. In today’s omni-channel world, brands must be strategic about merchandising on their various channels and need to fully understand why or why not their customers are clicking the buy button –– no matter where it appears.
Check out the infographic below for key insights or read the full State of Omni-Channel Retail Report....
Jeff Domansky's insight:
What's the consumer journey looking like today in an omni-channel world? Marketers and retailers take note.
Mastercard has announced that it is powering the first commercial application of SoftBank’s humanoid robot Pepper, creating a service in Pizza Hut restaurants in Asia.
The service will have Mastercard’s digital payment service MasterPass as the core and Pizza Hut, the first brand to come on board to test the service, aims to trial Pepper over the next few months with the goal for it to be live in-store in Asian restaurants by the end of 2016.
Tobias Puehse, vice president, innovation management, digital payments and labs at MasterCard, said: “Consumers have come to expect personalized service, customized offers and simple and seamless processes both in-store and online. The app’s goal is to provide consumers with more memorable and personalized shopping experience beyond today’s self-serve machines and kiosks, by combining Pepper’s intelligence with a secure digital payment experience via MasterPass.
”Pepper will be programmed to launch on greeting, or when activated via a QR code or once the MasterPass has been activated within the app. Pepper will give personalised offers and suggestions, as well as helping with checking out and paying....
Jeff Domansky's insight:
I thought they already had robots serving in pizza restaurants? LOL
For the sixth year, Coupons.com, Quotient Technology Inc.'s (NYSE: QUOT) flagship savings destination, is releasing America's Most Frugal Cities list, showcasing cities with the most budget-conscious shoppers. According to the 2015 Coupons.com Savings Index[1], shoppers in 2015 clipped more than 1.6 billion digital coupons and saved more than $2.3 billion on consumer packaged goods, including grocery and household items.
This year, residents in Orlando are once again the savviest savers in the nation, reclaiming the title of Americas Most Frugal City from San Francisco, which took the lead in 2014 for the first time. Orlando won the 2013 honors and slipped to the third-ranked position in 2014. Rounding out the top 10 list, Washington, D.C., took the #2 spot for the second year in a row. Charlotte, N.C., moved up two spots to #3 and for the first time ever, New York City cracked the top 10 list as the #4 most frugal city in 2015. Atlanta (#5), Cleveland (#6), and Tampa, Fla. (#7), came in at a virtual tie, with Nashville, Tenn. (#8), narrowly beating Raleigh, N.C. (#9) and Virginia Beach, Va. (#10) to round out the top 10....
Jeff Domansky's insight:
Where are the biggest cheapskates according to Coupons.com? Orlando, Washington DC and Charlotte, NC.
Executives at a number of US retailers may be surprised to see Bloomberg’s headline on Friday: “Retail Sales Rise Most in a Year, Marking U.S. Consumer Comeback.”
This despite a number of America’s top retail chains reporting dire earnings reports and lowering their outlooks this week. Macy’s shares fell to a four-year low this week, with one analyst saying its woes could doom a third of US shopping malls. Kohl’s reported an 87% drop in net income for its most recent quarter. Nordstrom is cost-cutting following its drop. Gap Inc. may close more Old Navy and Banana Republic stores as its portfolio struggles. JCPenney shares sunk 10% on Friday morning after its disappointing quarterly report.
Kohl’s quantified its distress with the report of a sales drop of 3.7 percent and a profits plunge of more than half; sales at stores open at least a year were down by 3.9 percent. This followed an earlier report by Macy’s that first-quarter sales had fallen off by a huge 7.4 percent, while profit plunged by 40 percent; same-store sales were down by 5.6 percent, Macy’s fifth consecutive quarterly decline. Earlier, Gap said its comparable-store sales for the quarter would be down by 5 percent....
Jeff Domansky's insight:
Big retail is suffering, but online sales are gaining traction and omni-channel strategies will grow in importance
For many Americans, smartphones are as much a necessity in their daily lives as the air they breathe and the food they eat. These devices are constant companions, helping us take care of just about everything we need to do each day—watching our favorite shows and movies, keeping up with our friends, learning new languages and managing our finances.
And spending money is no exception!
In addition to growing as a new purchase channel, mobile commerce offers a plethora of opportunities for marketers and advertisers looking to reach their desired consumers. According to Nielsen’s fourth-quarter 2015 Mobile Wallet Report, 37% of respondents said their purchases start with mobile shopping more than one-quarter to half of the time. However, the competition is fierce, and in order to maximize these opportunities, marketers must know the best ways to position their products and communicate with appropriate audiences.
Consumers handle a lot of their shopping activities on their mobile devices, and everyone knows that savvy consumers do their due diligence before handing over their cash. In fact, 72% of smartphone shoppers research an item before purchasing it, 70% check the price of an item and 60% use a store locator to find a store where they can buy their desired product of choice....
Jeff Domansky's insight:
Valuable Nielsen research on mobile influence on shopping.
Last Sunday was an extremely lucrative day for the US economy with people spending a combined total of $15 billion on the Super Bowl.
This Sunday marks Valentine's Day and this year, loved-up couples are going to spend $19.7 billion, according to the National Retail Federation. Candy, greeting cards and an evening out are top of the gift list this year with men set to spend significantly more than women as usual. 54.8 percent of Americans intend celebrating in some manner on Sunday, and people are also going to spend an average of $26.24 on gifts for their pets....
Jeff Domansky's insight:
This chart shows the key numbers behind Valentine's Day 2016.
The report highlights three key predictions addressing the use of facial recognition as a marketing tool in 2016.
The first is that marketers will use facial recognition software to attract more subscribers to visit retail stores, enticing customers with so-called “deals at the door.”Additionally, brands can use these deals delivered via facial recognition software to motivate consumers to return to retail stores to make a purchase.
Second, marketers will use facial recognition software to provide consumers with more personalized deals, promotions and product suggestions. As consumers enter the store, the combined use of cameras and facial recognition software are able to collect a handful of metrics, including height, weight, gender and approximate age.
Third, marketers will use facial recognition software to learn more about a customer’s buying habits over time to ultimately develop long-term customer relationships....
Jeff Domansky's insight:
Marketers will soon rely on facial recognition to advance their digital marketing capabilities in an effort to better reach, engage and convert consumers.
Wait. Stop the train. Listen up. People still buy things in stores. I know. I know. It’s not sexy to say we actually bought a book in a bookstore.
According to US Census data, the total amount of retail dollars Americans are expected to spend this year is approximately $4.5T. That’s $4.5 trillion retail dollars spent in physical places (stores, restaurants, etc.) and in digital spaces (online, mobile, etc.).
Of that $4.5T dollars spent on retail goods and services, 93% of is being spent in physical places with only 7% being spent in digital spaces....
Adobe Digital Insights predicts 2016 online sales will be up 11% and shoppers will be out earlier than ever. 55% of US and UK retailers say Amazon will drive the majority of their holiday sales this year according to research by ChannelAdvisor and Morar Consulting. The National Retail Federation expects US consumers to spend an average of $935.58 with overall holiday sales to rise 3.6% and online sales up 7% to 10%.
What’s Walmart’s holiday sales strategy? Value, price rollbacks and features, along with Santa’s helpers at checkout. UPS expects to be busy as well, shipping more than 700 million packages during the holidays, up 16.7% from 2015. Bestblackfriday.com, says Friday’s Black Friday sales may drop by 10% in-store to$9.2 billion though online sales may reach $3 billion, up 13%....
Jeff Domansky's insight:
Here's an interesting roundup of holiday e-commerce and retail predictions.
The largest-ever acquisition of an e-commerce company likely won't be enough for Wal-Mart to dethrone Amazon. But there's no shame in playing for second.
In a bid to juice its online business, the world's largest retailer agreed Monday to purchase Jet.com in a $3.3 billion deal. The acquisition will beef up Wal-Mart's e-commerce prowess, from deepening its bench of talent to finding the cheapest way to ship online orders. These capabilities should help Wal-Mart grab a larger piece of the growing e-commerce pie. They're also the best chance it has of closing the wide — and growing — gap between it and Amazon, analysts said.
"Amazon's got this huge lead. That lead is going to be tough to relinquish but there's a lot of [share] out there," Moody's analyst Charlie O'Shea told CNBC....
Jeff Domansky's insight:
Worst-kept secret, but Walmart finally completes the deal to buy Jet.com.
Marketers spend a lot of time trying to nail down abstract concepts. They're tasked with turning brainstorming sessions and comments sourced during focus groups into campaigns that sum up everything about a brand's identity in a neat, tidy, and most importantly, interesting way.
But what if a consumer could walk into a room and fully experience your brand with all their senses? Pop-up events offer just that -- the chance for consumers to get up close and personal with their favorite companies in a truly immersive setting.
In their simplest form, pop-up events are temporary retail spaces that give companies the opportunity to sell their products in an environment completely designed and controlled by them. Since they're temporary, they offer a relatively low-cost and low-commitment way for companies to take creative risks, generate buzz, and introduce their brands to new audiences.
Consumers love the lure of exclusivity, and brands love the unmatched opportunity for experimentation. To inspire your next branded experience, we've curated a list of 15 innovative and visually stunning pop-up events....
Jeff Domansky's insight:
Creative marketing concepts are evident in these 15 examples of branded pop-up stores. good lessons. Good lessons.
Shoppers are warming to beacons and virtual reality.
The majority of consumers are open to location-based technology as long as it improves their shopping experience, according to a new study.
In the no-surprise department, coupons are viewed as the biggest incentive, based on a survey of 1,400 U.S. consumers focused on shopping habits and emerging retail technology conducted by Walker Sands.
While a third (33%) of consumers aren’t open to beacons or any location-based technology in stores, 67% say in-store tracking could improve their in-store shopping experience.
Jeff Domansky's insight:
Shoppers say bring on the in-store coupons and perhaps some maps.
Subscription services have become popular among online shoppers, but those same shoppers are also abandoning these services.
Through these subscriptions, customers make recurring payments and receive order shipments at regular intervals, and they have become popular because they let consumers refill products they need to replenish often, such as health and beauty products.
These services typically personalize orders based on a shopper's interests and style, which the companies often learn through connected social media accounts and quizzes. This experience mirrors the personalized service customers would get inside brick-and-mortar stores from sales associates.
So interest in these services has remained high, as 10% of U.S. shoppers have enrolled in one, and another 33% would consider doing so, according to the latest UPS Pulse of the Online Shopper report.
But satisfaction in these services is dropping, as 61% of those who have signed up have since canceled. And there are four main reasons why....
Jeff Domansky's insight:
Curated e-commerce subscriptions – an early e-commerce favorite – may have now run its course according to a Business Insider report.
For two decades now, aspiration has been the watchword of branding. Sell people the story of who they want to be, the logic goes, and the brand wins an unmovable place in their hearts. At one time, many brand campaigns truly struck a chord as they resonated with consumers on an emotional level. We’ve reached a point, though, where many consumers can’t identify the product in an ad, and often can’t place themselves in the idealized aspiration being dramatized. Wrought with overblown promises and fantasy claims, these brands have left consumers apathetic. They live in the real world where you can’t buy happiness, so please, stop trying to sell it them.
Younger consumers, in particular, want to know what you’re actually selling, not how it’s supposed to make them feel. They value what’s real and pride themselves on seeing through marketing claims, so they look for emotional stories that are anchored in a product truth. They’ll trust you when you talk straight, have a sense of proportion, and deliver what you promise PMSEY +%. This down-to-earth approach is a driving factor behind the continued rise of Japanese retailer Uniqlo .
Uniqlo’s offering is simple – low-cost, high quality basics, all delivered with unmatchable customer service. With a focus on fabric over fashion, the brand is able to keep costs low while investing in product innovation. Each product in the store has a diagram of how it was made and an explanation of the materials used to underscore the quality and provide transparency. Advertising is clean and simple, stressing a technically superior garment at a reasonable price rather than pushing an aspirational ideal. All these elements together create a brand that has stripped away all the bells and whistles to offer something real and relevant....
Jeff Domansky's insight:
By their nature, some products simply aren't "aspirational" so trying to promote them as such is a worthless exercise. Depends on the product in my opinion.
Coupons are quickly growing as a significant component of beacon-enabled proximity marketing thanks to strong redemption rates, with brands and retailers forecast to deliver 1.6 billion coupons a year by 2020, according to a new report from Juniper Research.
The results point to how proximity marketing is gaining traction as retailers look to engage more deeply with consumers in and around their stores, prompting the volume of beacon-enabled coupons to grow quickly from the 11 million expected to be delivered in 2015. However, the research also underscores the potential danger of turning beacons into nothing more than another offer channel, which is likely to cause shoppers to lose interest.
“I would imagine that coupons will represent a key plank of any beacon-based proximity marketing strategy,” said Dr. Windsor Holden, head of forecasting and consultancy at Juniper Research as well as author of the report....
Jeff Domansky's insight:
Talk about powerful? Beacons will deliver more than 1.6 billion coupons a year by 2020 according to a new report from Juniper Research. Recommended reading for retailers and marketers. 9/10
Brand loyalty is important to retailers, but one tool can lure loyal shoppers away to other establishments.
Coupons are still one of the most effective tools to attract customers away from brands and retailers to which they are loyal, according to a report from Valassis.
Furthermore, coupons are just as influential among average consumers as they are among brand loyalists:
84% of all consumers (not including brand loyalists) would likely switch stores in order to capitalize on weekly specials, compared to 82% of brand loyalists.
Coupons would lead 82% of all consumers to purchase a product from a brand they would not otherwise, compared to 78% of brand loyalists
85% of all consumers would purchase a new product because of a coupon, compared to 84% of brand loyalists....
Jeff Domansky's insight:
Coupons are still a powerful influence with the ability to move consumers from one brand to another with the right deal.
Big box retailer stocks are getting hit hard Wednesday, following Macy's dismal earnings report.
Macy's shares are down 13%, while some of the largest retailers like Sears, Target, and Nordstrom all dropped by at least 5% during the day.
Amidst all this, Amazon, the online retailer that just opened its first physical store last year, is trading at an all-time high, reflecting a clear shift in consumer behavior.
The growth of online shopping is nothing new. But this chart that compares the 12-month stock movement of Amazon, Walmart, Macy's, Target, and the retail index fund "XRT" clearly illustrate the online retailer's growing dominance in this space:...
Jeff Domansky's insight:
Retailers online and off-line struggle while Amazon crushes it.
Amazon's services are in constant evolution. Its growth is surely not threatened for the moment, on the contrary! Its innovative status is crushing its competitors and in the near future they'll maybe be the major retailer in the world, if they continue like this.
A study from HRC Advisory finds that operating earnings as a percent of sales has declined by up to 25 percent for retailers due in part to a shift from in-store to online sales. The high cost of fulfilling e-commerce and omnichannel transactions also took its toll.
As part of the study, HRC analyzed the financial data of department stores, luxury, specialty apparel, beauty and off-price retailers as well as interviewing 15 c-level retail executives to gain their perspectives.
The study found that investments made in supply chain upgrades, digital marketing, IT, variable logistics costs and managing a high level of online returns generated incremental SG&A costs of two to three percentage points of sales. At the same time, real estate and wage inflation as well as declining in-store sales are resulting in a one to two percentage point reduction in physical store profit contributions....
Jeff Domansky's insight:
E-commerce is helping erode retail profitability according to research from HRC Advisory. Not great news for bricks and mortar stores.
Coined by the fearless leader and editor of “The Robin Report,” Robin Lewis, “The race to the bottom” is now the perfect catchall phrase for the dynamic we see at play now. (Full disclosure: I have valued Robin’s work for over 25 years, and think he is a complete visionary.)
The phrase not only refers to a price proposition, but also to the value proposition that I call “emotional gross margin” or EGM. EGM is the intangible value when you appeal to a consumer in ways beyond the product value. When you dilute your EGM, all you have left is a commodity. And everyone has commodities. The reality today is that we have created an experience for the consumer that is contributing to the dilution of an emotional gross margin. The diminishment of this so-important value proposition is creating an unending cycle that feeds on itself, further diluting the emotional connection.
You can now buy clothing for less than you pay for pizza at Dominos. The commoditization of apparel has finally hit its stride. Clothing is now the new fast food. And we digest it just as fast, or even faster.
At the same time, the consumer is smart enough to know that the price tag on a garment is simply a placeholder for an inevitable discount. By price promoting in this way, we have created an environment that has no end game and is jeopardizing our customers’ trust in our brands, it’s a game of chicken and we always blink....
Jeff Domansky's insight:
As Nick Graham says: you can’t put a price on happiness. So let’s take the signs down and reinvent how to make people smile again. The race is on.
Not every retailer had a great 2015. Some brands seriously struggled.
These are some brands that did not fare too well — many suffered from low sales and misguided sartorial choices. Some companies filed for bankruptcy.
Here's hoping 2016 will be better for them....
Jeff Domansky's insight:
From bankruptcy to misguided styles to lawsuits, these retailers had a difficult year starting with J Crew, Banana Republic, Gap, Sears, Quicksilver, Macy's and more.
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Amazon is now testing three different types of retail – bookstores, pickup/drive-through and now, an innovative no cashier, no checkout, no lineups, convenience store. Retailers look out!