retail insights 2011 09
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©2011, Cognizant
September 2011
Retail Insights
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North America News
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Lowe’s launches iPhone and iPod app
Source: http://www.retailingtoday.com/article/lowe%E2%80%99s-launches-iphone-and-ipod-app;
• Lowe’s has launched a home improvement app for iPhone and iPod, now available on the App Store
• The Lowe's App allows consumers to research and purchase products, locate stores, watch how-to videos, review product ratings, and more
| ©2011, Cognizant 4
Collective Brands to close 475 underperforming stores as it considers selling itself
Source: http://www.retailingtoday.com/article/collective-brands-close-475-underperforming-stores-it-considers-selling-itself ;
• Collective Brands, parent company of Payless and Stride Rite shoe chains is planning to close 475 underperforming stores over the next three years
• The strategy, said Collective, is to optimize the performance of its Payless and Stride Rite stores
• The company currently operates 4,844 stores, of which 4,461 are Payless stores
| ©2011, Cognizant 5
Target puts final Canadian plans in motion
Source: http://www.retailingtoday.com/article/target-puts-final-canadian-plans-motion;
• Target's entry into Canada is nearing completion, as the company finalized its real estate transactions
• Target's venture into Canada began in January when the company announced that it had agreed to pay C$1.825 billion to purchase from Zellers Inc., a subsidiary of the Hudson's Bay Company
• Target plans to open 125 to 135 stores in Canada, the majority of which will open in 2013, beginning with the first cycle in March
| ©2011, Cognizant 6
Wal-Mart bringing back layaways for holiday shopping
Source: http://www.retailingtoday.com/article/wal-mart-bringing-back-layaways-holiday-shopping; http://blog.jdapos.com/blogjdaposcom/bid/46396/The-Re-Return-of-the-Layaway;
• Wal-Mart Stores will introduce a holiday layaway plan from Oct 17 to Dec 16• If the program is successful, Wal-Mart said it may extend it throughout the year• Sears, Kmart, Toys R Us, Best Buy, T.J. Maxx, Fashion Bug, Victoria's Secret and Kay
Jewelers are a few retailers who offer layaway option• Layaway option is also available as a feature in the POS system, making functionality
integration much easier
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United Kingdom News
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UK Retailers Prepare for Another Wave of Closures
Source: http://www.guardian.co.uk/business/2011/sep/05/high-street-braced-more-closures; http://www.bdo.uk.com/press/2011/9/riots-deal-bitter-blow-august-high-street-sales;
• Britain’s high street retailers hit by multiple waves of closures• Sales figures dropped by 2.2% year-on-year in August for mid-market retailers• Top reasons for sales dropoLondon RiotsoVolatile Stock MarketsoPoor Weather
| ©2011, Cognizant 9
UK consumers plan to shift to discounters
Source: http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8733876/Discount-stores-set-to-take-customers-from-supermarkets.html; http://www.igd.com/index.asp?id=1&fid=1&sid=7&tid=10&cid=2104;
• A monthly survey, conducted by IGD, the retail research body, has found that 29pc of consumers planned to do more of their shopping at discount stores
• IDG expects five key trends shaping the discount retailer market:oBuilding authority in foodoDeeper supplier engagemento Increased shopper appealoOnline developmento International expansion
| ©2011, Cognizant 10
M&S plans major stores facelift
Source: http://www.google.com/hostednews/ukpress/article/ALeqM5iOdUw_B1x4xXhBNI8RmX0cyM4kug?docId=N0315451315742034516A;
• Marks & Spencer is to embark on its second major store revamp in two years to boost its in-house brands and food offerings
• The company has allocated £600 million to help to make the 703-strong chain of shops easier to navigate
• M&S also plans to make the retailer's own brands (Per Una, Limited Collection and Autograph) more distinctive
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Asia Pacific News
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Overseas retailers attracted to Australia
Source: http://www.smh.com.au/business/overseas-retailers-attracted-to-australia-20110912-1k5au.html;
• Major Australian retailers have bucked the gloomy worldwide retail forecasts• Harvey Norman, Woolworths, Wesfarmers and JB Hi-Fi all reported higher profits in
2010-11• IBISWorld analysts expect Australia's retail spending to be three per cent higher than
last year
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Retail Technology
| ©2011, Cognizant
Aberdeen - Next Generation Retail Store-Level Workforce Management Strategies
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Source: Aberdeen - Next Generation Retail Store-Level Workforce Management Strategies
• Legacy WFM not meeting customer expectations and cost factors
• Customer-centricity is the top reason driving workforce management efforts
• Retailers expect WFM to help align staff schedules with business needs and standardize workforce management across the organization
• Time & Attendance Integration with Scheduling and Self-Service Scheduling training are the top capabilities with retailers; Introducing direct linkages between in-store scheduling and key corporate goals is planned future capability
| ©2011, Cognizant
SymphonyIRIGroup - Digital Dimension - Consumers Embrace Digital Media with Diverse Approaches
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Source: SymphonyIRIGroup - Digital Dimension - Consumers Embrace Digital Media with Diverse Approaches
• Digital media has catalyzed connectivity to new levels, allowing users to engage in a plethora of applications designed to make life simpler and marketing more direct and connected
• One in two consumers leverage traditional grocery shopping list-making tools. However, in a world where there is an “app” for everything, more consumers are leveraging new media tools for making their shopping lists
• Young consumers are much more likely to use Internet-based list making tools versus other consumer trends
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Industry Research Highlights
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Consumer Perceptions of Online Registration and Social Sign-In
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Source: http://www.shop.org/c/document_library/get_file?folderId=164&name=DLFE-820.pdf;
• 75% of customers bothered by website registrations and will change their online behaviour
• While registering, 76% have given incomplete / incorrect information
• When login information is forgotten, 45% leave the website instead of resetting password
• Social sign-in is considered as a desirable alternative
• Social sign-in users purchase more online
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Thank You