re:store - redefining retail

53
BUY! SALE 50%OFF GREAT DEALS! SALE SPEND!!! SPEND!!! $$$$$ $$$$$$$$ SHOP Re:Store – Redefining Retail Regaining the emotional higher ground at retail redefining retail

Upload: jean-pierre-lacroix-rgd

Post on 19-May-2015

286 views

Category:

Business


0 download

DESCRIPTION

Regaining the emotional higher ground at retail For more white papers and webinars, go to http://www.sldesignlounge.com Or visit us at http://www.sld.com

TRANSCRIPT

Page 1: Re:Store - Redefining Retail

BUY!SALE50%OFFGREAT DEALS!

SALESPEND!!! SPEND!!!$$$$$

$$$$$$$$SHOPRe: Store – Redefining RetailRegaining the emotional higher ground at retail

redefining retail

Page 2: Re:Store - Redefining Retail

Hotspex delivers provocative marketing research insights that help clients confidently make informed, inspired decisions. It differentiates itself from other research companies in three ways:

• Consumer engagement • Client engagement • Business focused analysis

The meaningful, actionable insights that result from our work allow our clients – some of the world's leading brands – to develop better strategies, innovations and executions.

Page 3: Re:Store - Redefining Retail

Shikatani Lacroix is a leading branding and design firm located in Toronto, Canada.

The company wins commissions from all around the world,

across CPG, retail and service industries, helping clients

achieve success within their operating markets.

It does this by enabling its clients’ brands to better connect with their consumers through a variety of core services

including corporate identity and communication, brand

experience design, packaging, naming and product design.

Page 4: Re:Store - Redefining Retail

In 2009, Shikatani Lacroix launched Design Lounge, a website devoted to thought leadership and branding innovation.

Since its inception, the website has hosted a wide variety of

thought provoking video webinars and white papers on all things brand related. In 2011, Design Lounge launched its

first groundbreaking study on the role of packaging in an online world.

Page 5: Re:Store - Redefining Retail

Shifting power structure

Page 6: Re:Store - Redefining Retail

Who will win this tug of war?

Page 7: Re:Store - Redefining Retail

•Cross-Shopping Behavior: How consumers utilize the online and retail environments

•The Emotional Content of Shopping: Online vs. offline

•Brand Profiles

•The Ideal Shopping Experience: What consumers want from retailers online and offline

Page 8: Re:Store - Redefining Retail

Respondent profile

WOMEN MEN U.S. CANADAHOUSEHOLD GOODS

PERSONAL CARE BOOKS CLOTHING ELECTRONICS

1049 981 1020 1010 411 400 407 407 405

52% 48% 50% 50% 20% 20% 20% 20% 20%

Page 9: Re:Store - Redefining Retail

Visiting retail store locationsMass

Merchandiser(n=638)

%

Walmart 83

Target 69

JC Penny 38

Sears 34

Kmart 34

Sam’s Club 27

Costco 24Top 3 Retailers Most Often Visited %

Walmart 53

Target 25

Costco 6

Bookstore(n=591) %

Barnes & Noble 68Local / independent book store 20

Borders 16BAM! (Books-a-Million) 9

Top 3 Retailers Most Often Visited %

Barnes & Noble 60Local/independent book store 11

Borders 6

Clothing/ Fashion(n=630) %

Kohl’s 54

Macy’s 50

TJ Maxx 35

Marshalls 28

Gap 22

Bloomingdale’s 8

Neiman Marcus 7Top 3 Retailers Most Often Visited %

Kohl’s 31

Macy’s 24

TJ Maxx 8

Drugstore(n=602) %

Walgreens 66

CVS 61USA Drug Stores (Super D, May’s) 3

Top 3 Retailers Most Often Visited %

Walgreens 44

CVS 43USA Drug Stores (Super D, May’s) 1

Electronics/ Appliances

(n=599)%

Best Buy 77

Radio Shack 28

Fry’s 11

Circuit City 8

Top 3 Retailers Most Often Visited %

Best Buy 70

Radio Shack 9

Fry’s 5

Page 10: Re:Store - Redefining Retail

Visiting online retail websitesMass

Merchandiser(n=638)

%

walmart.com 66

ebay.com 59

target.com 51

craigslist.org 39

jcpenny.com 32

sears.com 28Top 3 Online Sites Most Often Visited %

walmart.com 36

ebay.com 21

target.com 17

Bookstore(n=591) %

amazon.com 87

ebay.com 47barnesandnoble.com 45

apple.com 14

booksamillion.com 7

abebooks.com 6Top 3 Online Sites Most Often Visited %

amazon.com 75barnesandnoble.com 11

ebay.com 6

Clothing/ Fashion(n=630) %

macys.com 42

thegap.com 17

landsend.com 15

llbean.com 12

jcrew.com 9

lanebryant.com 7Top 3 Online Sites Most Often Visited %

macys.com 31

thegap.com 8

llbean.com 5

Drugstore(n=602) %

walgreens.com 42

cvs.com 37

drugstore.com 25

edrugstore.md 2canadianmedsusa.com 2

Top 3 Online Sites Most Often Visited %

walgreens.com 28

cvs.com 22

drugstore.com 17

Electronics/ Appliances

(n=599)%

amazon.com 78

bestbuy.com 57

ebay.com 49

craigslist.org 29

apple.com 20

frys.com 10Top 3 Online Sites Most Often Visited %

amazon.com 55

bestbuy.com 21

ebay.com 8

Page 11: Re:Store - Redefining Retail

Online easy

Shoppers consider themselves very knowledgeable and comfortable with crossover shopping

50% to 70% browse in the store and then buy online

70% Browse then shop

online

30% Browse and shop in

store

Page 12: Re:Store - Redefining Retail

Online shopping on growth path Shoppers’ online shopping activity will continue to grow. In the next five to 10 years, about half of their shopping activity will be online rather than in store

Legend

HOUSEHOLD

GOODS/MASS

MERCHANDISE

PERSONAL CARE/

COSMETICS/

MEDICATIONS

BOOKS/

MAGAZINES/

MEDIA

CLOTHING/

FASHION

ELECTRONICS/

APPLIANCES

redefining retail

Page 13: Re:Store - Redefining Retail

Online shopping on growth path % of time spent shopping ONLINE rather than retail

5-10 yearsin the future

Present

11% 10% 19% 15% 24%

29% 28% 46% 30% 42%

redefining retail

0-25%

26-50%

51-75%

76-100%

L E G E N D

Page 14: Re:Store - Redefining Retail

Almost half of shoppers are using their mobile phones to check prices while in store in the electronics category and about 40% in other categories

Smartphone smart pricing

Page 15: Re:Store - Redefining Retail

Retail sales erosionPotential retail sales leakage is about 15% of all browsers going to an online retailer and specifically 7% going to Amazon.com

Page 16: Re:Store - Redefining Retail

Browse store and buy online

Shopped for Category in StoreBut Bought Online

(%)

NET Electronics 24

DVD/movies 5

CD/music 3

NET Clothing & Accessories 17

Shoes 3

Other clothing mentions 3

Books 14Specific Store or Website Name

11

NET Personal Care 7NET Houseware/Furniture Appliances

6

NET Cosmetics/Perfume 4

Cleaning supplies 3

Other 4Don't know/refused 3

Store (%)

Walmart 15

Best Buy 11

Barnes and Noble 7

Target 6

Amazon 5

Macy's 4

Don't know/refused 2

None 3

Browsed a store …

…but bought online

Website (%)

Amazon 46

Walmart 8

eBay 5

Other clothing/apparel websites 3

Other website mentions 4

Don’t know/refused 3

None/nowhere/I did not buy online 3

• Browse stores and buy online behavior most common in electronics• Walmart and Best Buy lead in stores browsed but then purchases

made online• Amazon clearly dominates online purchases

Page 17: Re:Store - Redefining Retail

Buying from retailer website

Buying from a traditional retailer website (%)

Mass Merchandise

DrugstoreBooks/

Magazines/ Media

Clothing/ Fashion

Electronics/ Appliances

A B C D E

n=211 n=199 n=202 n=203 n=205

Very Often 26 24 30 2938AB

Sometimes 45 42 39 48 45

Rarely 18E 18 18E 15 11

Never 11 17DE 12E 8 6

70 66 69 76B

82ABC

Buying from a traditional retailer’s website appears to be quite important, particularly to those purchasing electronics/appliances

11% Never

16% Rarely

44% Sometimes

29% Very Often

Page 18: Re:Store - Redefining Retail

Non-retailer websites

Websites Mass

Merchandise

n=157(%)

Amazon 45

eBay 13

Walmart 9

Overstock.com 4

Target 4

WebsitesDrugstore

n=151(%)

Amazon 42

eBay 7

Drugstore.com 7

Walmart 7

Target 7

CVS 3

Sephora 3

Websites(Books/

Magazines/ Media)

n=141(%)

Amazon 58

eBay 16

Barnes and Noble 9

Walmart 4

Websites(Clothing/ Fashion)

n=145(%)

Amazon 36

eBay 13

Macy’s 6

Walmart 5

JC Penney 5

Target 4

Overstock.com 3

Kohl’s 3

Websites(Electronics/ Appliances)

n=128(%)

Amazon 48

eBay 20

Best Buy 6

Newegg 5

Target 5

Walmart 5

• Amazon has a very strong lead across all categories but particularly for books/magazines

• eBay ranks a distant second

Page 19: Re:Store - Redefining Retail

Reasons for going onlineReasons for Going Online (%)

NET Prices 60 Value/price: online is cheaper 49 Offers special deals or promotions 8 Compare prices 4 Check prices 2NET Selection 25 Variety/carries the brands I like 14 SUBNET Had What I Wanted/Needed 11 Had what I wanted/needed 3 In stock 3 Had my size/more sizes 3NET Easier/Faster 14 So easy - click and buy 11 Fast/ faster 3NET Convenient 12 Convenience 8 I can do it all from home 2 I can shop anytime I like 2NET Shipping 10 Free shipping 7 Delivery/home delivery 2NET Out of Stock/Unavailable in Store 6 Not available/couldn't find in store 4NET Other Positive Attributes 6 Comparison shop 3NET Information/Research 4NET Gift Card/Credit 3Other 4Don't know/none/refused 4

• Price is the overriding reason for purchasing online versus in store

• Selection is a distant second; consumers say online provides greater variety or is more likely to include exactly what is needed

Page 20: Re:Store - Redefining Retail

Would have bought at store if …

Would Have Bought at Store If … (%)

A guarantee that prices shown will match online retailers

45

Offer a selection not available online 37

Ability to quickly price compare with online prices 31

Reward points/store loyalty program 27

Free shipping and installation 23

Ability to shop online at the retailer's site while in the store

19

An in-store guarantee/extended warranty offered by retailer

15

A retailer app that allows me to scan and price compare all competitor prices

13

Better financing on big-ticket items 8

Concierge service 5

Seminars on how to best use the product 5

Other 11

If not never… (88%)

Browse in store but buy online (%)

15% Very Often

29% Rarely

12% Never

44% Sometimes

Matches online prices, offers unique items, introduces loyalty programs, makes it easy to compare retail to online pricing, and offers free shipping and installation

Page 21: Re:Store - Redefining Retail

Reasons for not buying at store

Reasons for Not Buying at Store (%)

NET Prices 49

Value/price: online is cheaper 45

Offers special deals or promotions 3

NET Limited Selection 30

SUBNET Out of Stock/Unavailable 22

Not available/couldn't find in store 12

Not in stock/out of stock (in store) 7

Didn't have my size (in store) 4

Less/limited selection 9

NET Having To Travel 5

Driving/did not want to drive/cost of gas 3

NET People In Store 3

Bad customer service/sales staff 3

Other reasons for not shopping in store 7

NET Less Crowded 6

I don’t like crowded malls 5

NET Selection 5

Had what I wanted/needed 3

Don't know/none/refused 7

• Price and selection are also the key reasons for not making a purchase at a retail outlet

• Almost one in four specifically say they turn to online shopping when the item they want is not available via retail outlets

Page 22: Re:Store - Redefining Retail

Consumer knowledge

If very/somewhat knowledgeable (95%)… % just as knowledgeable if not more than salesperson

Mass Merchandise Drugstore

Books/ Mags/Media

Clothing/ Fashion

Electronics/ Appliances

A B C D E

n=207 n=187 n=191 n=188 n=197

Very Often 40 37 38 43 39

Sometimes 53 50 51 46 46

Rarely 6 11 10 9 13A

Never 1 2 1 2 2

93BE

87 89 89 85

2% Never

10% Rarely

49% Sometimes

39% Often

Approximately nine out of ten consumers say they are as knowledgeable as the salespeople they deal with

Page 23: Re:Store - Redefining Retail

If cannot find a salesperson

Try to find a salesperson

Keep shopping/browsing

Wait for someone to help me

Buy item I had in mind anyway

Leave the store

Other§1

§24

§25

§27

§43

§52

Mass Merchandise

Drugstore

Books/ Magazines/

Media

Clothing/ Fashion

Electronics/ Appliances

A B C D En=56 n=53 n=48* n=59 n=73

52 47 48 47 60

39 45 50E 53E 32

27 30 23 25 30

21 26 27 34E 16

29 23 17 24 25

- - - 5 1

If often/sometimes rely on salesperson (89%) … If cannot find a salesperson (%)

Overall, one in four will leave a store if they cannot find a salesperson to help them and a similar percentage will simply buy the item

Page 24: Re:Store - Redefining Retail

Owning the emotional connection

Page 25: Re:Store - Redefining Retail

Cracking the code of emotionsWhile research techniques to measure “emotions” continue to develop (brain scanning, etc.), Hotspex has invested four years in developing a comprehensive online measurement approach, which effectively captures how people “feel” about, and react emotionally to, brands

• This methodology is based on a comprehensive list of 85 emotions and 182 personalities

• We have proven conclusively across over 34 categories and over 101 brands that, on average, “soft” drivers account for half of all buying behavior

How people feel about brands, new product concepts,

and packages.

The personality that is projected outwards by brands, new

product concepts, and packages.

Page 26: Re:Store - Redefining Retail

Defining the emotional regions

ADULT

CHILD

Opposite

Zones Have

Opposing

Relationships

Understanding the emotional regions redefining retail

“LIKE YOU”

RIGID

UNDESIRABLEA

RRO

GANT

UNRELIABLE

DISH

O

NEST

INCO

M

PETEN

T

BO

RIN

G

DA

NG

ER

OU

S

ADULT (SERIOUS)

SPEX (CONSERVATIV

E)CH

ALL

ENGIN

G (MALE)

CHILD (FRIENDLY, CHEERFUL)

HO

T (REBELLIOUS)NURTURIN

G (FEM

ALE

)

PASSIV

E (IN

TR

OV

ER

TE

D, H

OM

E)

AC

TIV

E (

EX

TR

OV

ER

TE

D)

SH

OW

OF

F

NA

U

GHTY

AUTHORITARIAN

DEM

A

NDING OUTDATED

OR

DIN

AR

Y

IMPRACTICAL

WEA

K

EXCITIN

G

DESIRABLE

CAPABLE

INSPIR

ING

TRUSTW

ORTH

YFA

MILIA

R

FRIENDLY

NUTU

RING

Brown: TheCompetent Zone

Includes core emotions of

acceptance and fellowship,

as well as feeling informed

and self-confident

Purple: The Friendly ZoneIs associated with

emotions related to liking

Blue: The Nurturing ZoneIs linked to feelings of

human warmth such as

love,!caring, and

compassion

Red: The Fun ZoneIs associated with

emotions such as

enjoyment, amusement,

and desire

Green: TheTrustworthy Zone

Is grounded in emotions

such as trust, loyalty, and

respect

Orange: The Inspiring or Leadership Zone

Is based on feeling inspired

and optimistic

Grey: The Familiar Zone Is home to feelings of

satisfaction and gratitude

Yellow: TheInteresting Zone

Is built on the core emotion of Interest as well as

feelings of amazement and surprise, and being alive

and energized

Page 27: Re:Store - Redefining Retail

Emoti – Mass Merchandise (Retail vs Online)

Page 28: Re:Store - Redefining Retail

Emoti – Drugstore (Retail vs Online)

Page 29: Re:Store - Redefining Retail

Emoti – Books (Retail vs Online)

Page 30: Re:Store - Redefining Retail

Emoti – Clothing/Fashion (Retail vs Online)

Page 31: Re:Store - Redefining Retail

Emoti – Electronics (Retail vs Online)

Page 32: Re:Store - Redefining Retail

Shift in emotional power

Average core emotional connectionAverage core emotional connection In Store Online

Mass MerchandiseDriven by the emotions of optimism and trust, the emotional connection with online shopping is stronger than in-store shopping for the mass – merchandise category 46 55

DrugstoreOnline shopping is generating a great deal of interest and connection, as well as optimism, indicating a strong opportunity for growth and development of the online drugstore category.

41 55

Books & Magazines

Emotional connection with online book shopping is undoubtedly due to Amazon. However, in-store shopping for books is the high core emotional connection of all categories due to continued warmth and connection. Optimism is much lower for in-store than online.

61 67

Clothing & FashionIn the clothing and fashion category, the gap between online and in-store emotional connection is relatively narrow. Optimism and a feeling of interest drive down the in-store emotional response.

51 58

ElectronicsIn electronics and appliances, the emotions associated with online shopping are much stronger than for the in-store shopping experience. Pleasure and trust account for the higher online emotional connection.

46 62

Online clearly has a stronger emotional connection with customers in the majority of categories

Page 33: Re:Store - Redefining Retail

80%

70%

60%

50%

40%

In storeOnline

redefining retail

The emotional connection:In store vs. online

Page 34: Re:Store - Redefining Retail

Drivers of consumer choice

Stat

ed /

Cla

imed

Impo

rtan

ce

TABLE STAKES

The cost of entry into a category, these attributes are important but not proven to be a strong driver of choice.

Claimed to be important, and proven to significantly influence choice.

Not acknowledged to be very important, but proven to significantly influence choice.

Neither claimed nor proven to be important.

Derived Impact on Positive Emotional Score

KEY DRIVERS

UNIMPORTANT HIDDEN DRIVERS

z z

NEGATIVE DRIVERS

Negative attributes do not appear in driver maps, but they are shown in the Hotspex Heatmaps.

Drivers are plotted against a

dependent variable (Emotional score) in order to calculate a

derived impact score.

Page 35: Re:Store - Redefining Retail

Amazon.com key drivers

Quick purchase process

Value / price

I am already online

I am sure of my decision

I know it matches my needs

I trust the retailer

I have always gone to this retailer

Price comparison is easy

Offers special deals or promotions

Their products are not available in stores

Nice looking / attractive site

One stop shopping

My friends use the site

Feels comfortable to me

I am confident in the quality I get They are leaders in the field

Already set up for online purchasing / have an account

I can do it all from home

So easy – click and buy

I don’t like crowded malls

I can shop anytime I like

Quality is guaranteed – I don’t need to see it / touch it

Variety /carries the brands I like

Previous experience with the website

10%

20%

30%

40%

50%

60%

70%

80%

0.150 0.200 0.250 0.300 0.350 0.400 0.450 0.500

Sta

ted

Impo

rtan

ce (A

ssoc

iatio

n %

)

Derived Impact

Electronics Category - Amazon.com

Page 36: Re:Store - Redefining Retail

Brand persona – Electronics Best Buy (retail)

Amazon.com (online)

CompetentReliableSuccessful

Interesting

Cool

Likeable

Easy-Going

Down-to-Earth

37

Like Me(25)

35

24

2736

28

32

42 CompetentReliable

Successful

Interesting

Likeable

Cool

Likeable

Easy-Going

Down-to-Earth

6566

53

5364

56

64

67

Like Me(59)

Page 37: Re:Store - Redefining Retail

Emotional connections

•In the mass merchandise/household goods sector, Costco is the satisfaction and emotional leader, closely followed by Target. Walmart has strong satisfaction levels, but much lower emotional valence

•Walmart manages to have the highest overall online relationship score for the category, but it lags the in-store experience and other categories significantly

•Target scores well with many positive personality attributes, and is particularly likeable. Its online experience is a bit more polarizing, with some negativity apparent around reliability

Page 38: Re:Store - Redefining Retail

Emotional connections•eBay’s brand personality has many positive attributes but also

some minor negatives around reliability and being “like you”

•While value and price are the main factors for shopping at Walmart or Target, past experience and trust are more favorable for Target than Walmart

•In the online segment, eBay challenges the traditional retailers with much easier price comparison

Page 39: Re:Store - Redefining Retail

The ideal shopping experienceOne of our proprietary tools allows respondents to project their subjective or deep-rooted feelings and beliefs through an image. For this project we used a standardized library of 220 contemporary images. Respondents were asked to select pictures that describe:

Step 1: Pick the Finalists

Respondents were asked to select up to six images as “finalists.”

Step 2: Pick the “Winner”

Respondents were then asked to select the one photo that best

depicts the experience.

Step 3: Explain Choice

Finally, respondents were asked to explain why they

chose this photo.

Page 40: Re:Store - Redefining Retail

The ideal shopping experienceIn Store Online

Mass Merchandise 19% Relaxing

12% Good Deals

20% Relaxing

10% Good Deals

Drugstore 23% Relaxing

17% Good Deals

23% Relaxing

13% Good Deals

Books & Magazines 31% Relaxing

8% Variety and Discovery

23% Relaxing

11% Fast, Simple

Clothing & Fashion 13% Relaxing

10% Exciting

15% Relaxing

9% Good Deals

Electronics 20% Good Deals

14% Relaxing

18% Relaxing

15% Good Deals

Page 41: Re:Store - Redefining Retail

Accounting for the experiential factors and the

overall emotional connection

with a retailer, either online or in store:

• Satisfaction

• Recommendation potential

• Net positive or negative emotional reaction to a retail brand

Page 42: Re:Store - Redefining Retail

Store indexes – Top 20 redefining retail

75

62

54

54

51

51

50

49

46

45

44

44

43

42

42

40

39

39

38

amazon.com

Costco

apple.com* (Bookstore)

Target

CVS

Kohl's

Macy's

apple.com* (Electronics/Appliances)

ebay.com (Electronics/Appliances)

Walmart

Marshall's

llbean.com*

Walgreens

walgreens.com

walmart.com

Sams Club

TJ Maxx

thegap.com*

ebay.com (Mass Merchandiser)

Amazon.com has the highest overall relationship index for all retailers. The brand has unique strength in emotional response areas like trust and success, and has very strong satisfaction ratings.

Costco also has strong emotional valence and high satisfaction ratings, particularly in comparison to more traditional retailers.

Page 43: Re:Store - Redefining Retail

Store indexes – Bottom 20 redefining retail

37

37

37

36

36

36

34

33

32

30

30

29

26

25

25

23

16

16

7

7

Barnes & Noble

macys.com

JC Penny

target.com

The Gap*

*Caution: Low base size. Base varies by retailer (total U.S. = 1020)

ebay.com (Bookstore)

Local/independent bookstore*

bestbuy.com

Borders*

jcpenny.com

barnesandnoble.com

Best Buy

drugstore.com*

Radio Shack

cvs.com

landsend.com*

Sears

kmart.com

sears.com

Kmart

Online retail store properties (macys.com, target.com) tended to have lower relationship indexes than the traditional retail store. Target.com scores much lower than its retail parent, for example, due to some negative emotions stemming from reliability concerns.

Troubled retailers such as Radio Shack, Sears and Kmart round out the bottom of the American retailer ranking.

Page 44: Re:Store - Redefining Retail

Where to next?

Regaining the emotional connection

Page 45: Re:Store - Redefining Retail

Consumer feedback redefining retail

“Customer service in Canada needs to be improved. Whoever finally gets it right stands to make lots of money.”

“Excellent customer service is para-mount.”

“No matter the product you’re selling, a customer will only remain loyal if the

customer service is pleasant.”

“Increase the number of cashiers at the check-out to improve

satisfaction.”

“Have more cashiers on.”

“Make sure that you have enough cashiers during the day.”

“Have enough check-out reps working to accommodate line-ups as

they change.”

“Educate your staff to be more knowledgeable about the merchan-

dise they are selling.”

“You need staff who are really knowledgeable, really helpful and not just mouthing polite words.”

“Make sure your staff is both friendly and knowledgeable about the prod-

ucts and services that they are selling.”

“Offer more promotions and cou-pons - will encourage return custom-

ers.”

“Need more promotions to attract people.”

“How about some more specials and promotions?”

“You have the selection, but you should have more sales/specials.”

Knowledgeable staff

More cashiers More promotions/discounts

Better customer service

Retailshopping

Page 46: Re:Store - Redefining Retail

Consumer feedback redefining retail

Onlineshopping

“Free shipping to Canada is a must. If it is worth my while to get it from the U.S. with free shipping, I'll do it.”

“Lower the shipping and handling prices to be competitive.”

“I only shop at sites that offer free shipping.”

“Offer reasonable shipping rates.”

“Make it simple to understand and navigate for those like my mom and

dad.”

“Keep it simple and uncluttered.”

“Keep the layouts simple and have prices available on the website.”

“Keep the site simple. Allow for quick ordering of products.”

“Have a reward program of some sort, where you can earn points

toward future purchases.”

“Offer some sort of rewards/loyalty program.”

“Offer more rewards, make it easier to accumulate. Pay back for loyalty.

“Get a points/loyalty program.”

“Clean up search results and make purchase options clearer.”

“Improve the search functions so I can get the short list easier.”

“I wish that the search generators were not as broad so that I could search very specific items and not

sift through all the results.”

“Products need to be easy to search.”

Loyalty programs

Keep it simple Improve search tool

Lower shipping fees

Page 47: Re:Store - Redefining Retail

Where to from here?OverallTo effectively compete and regain the emotional connection, retailers will need:

• Unique items such as private label platforms and added-value services

• New and exciting store designs that engage customers• Stronger customer service • Better loyalty programs • Easy price comparisons between retail and online pricing• Free shipping and installation

Page 48: Re:Store - Redefining Retail

Where to from here?Mass Merchandise

• While retail leakage is more prominent in the electronics and books categories, online purchasing of household goods from Amazon.com is growing

• Most mass merchandisers operate their retail sites independent of their in-store offering and consumers have concerns over the relevance of the experience. Consumers want a seamless, problem-free environment with good prices and some good deals for occasional excitement

Page 49: Re:Store - Redefining Retail

Where to from here?Drugstores

• There seems to be a great deal of emotion associated with online drugstores, perhaps due to the low emotional connection felt with traditional U.S. drugstore chains

• Drugstores will need to continue to drive convenience while shoring up value-added services such as estheticians, out-patient services, eye care and health advisors

Page 50: Re:Store - Redefining Retail

Where to from here?Books and Music

• Amazon is unquestionably the dominant player in books. iTunes.com and Apple.com may have a challenge in music with the ease of use associated with Amazon

• While in-shop cafés are commonplace, we wonder about the potential for book kiosks in cafés to drive demand back to the online retailer and supplement the calm, relaxing environment sought after by consumers

Page 51: Re:Store - Redefining Retail

Where to from here?Clothing/Fashion• Having simultaneous attributes of relaxing and exciting are a tall

order for “retail choreography” but excitement brings consumers into the store, and a relaxing relationship encourages spending

• Deal-driven retailers such as Kohl’s and Marshalls (Winners in Canada) have strong relationship ratings due to high satisfaction, despite some concerns over reliability

• Overall, Macy’s seems to maintain a strong relationship base without consistently compromising on price

• Retail leakage concerns are growing in this category as well, and low ratings for online brand properties will provide opportunity for Amazon in this category if not addressed

Page 52: Re:Store - Redefining Retail

Where to from here?Electronics• Amazon is also the dominant player in electronics both in the U.S.

and Canada. Negative perceptions have significant impact on chains like Best Buy and Future Shop rankings, and seem to force them to compete on deals with Amazon

• Retailers will need to offer unique items, introduce loyalty programs, make it easy to compare retail to online pricing, and offer free shipping and installation

• Importance of private label will rise in this sector to provide greater differentiation

Page 53: Re:Store - Redefining Retail

Contact us

Jean-Pierre LacroixPresident, Shikatani Lacroix

416-367-1999 ext. 229

[email protected]

Chris ThorneVice President, Hotspex

416-487-5439 ext. 256

[email protected]