the wow retail monitor 2014 -...
TRANSCRIPT
2008 2013 Variation
Total sales Canada $443 Billion $475 Billion + 7%
Number of stores 203,000 195,000 -3,5%
Total surface 1,13 Billion sq ft 1,07 Billion sq ft -3%
Population 33,049,761 34,940,975 +6%
Average sales per capita $13,412 $13,594 1%
Sq ft by capita 34,2 pi2 31,4pi2 -8%
RETAIL WILL SHRINK
RETAIL WILL SHRINK
55% try to reduce their total household spending
-3% decline in retail spending over last year (-8% since 2008)
Source: Nielsen Homescan, Total Expenditures - 52 Weeks Ending December 28, 2013– Q4 Global Omnibus Survey - Canada
168.3
221.3
Trips / Household
$24.30
$25.60
Spend / Trip
2007 2014
$42.53
$51.08
Spend / Trip
Source: Homescan Retailer Watch, National All Channels, Total Expenditures 52 weeks to March 29, 2014
Total visits by household Basket size
One Does Not Make Up for the Other
SELF-SERVICE
“Retailers need to be able to accommodate how shoppers want to use the technology.”
NCR Retail Self-service Solutions Group
RETAIL BLURRING
“Young people know what they want; they are used to controlling their own environment, they shop online. I think they should be able to do that in the store as well”
Sneakerboy
ACCESS TO OTHER CONSUMERS
90% of customers are likely to come back if you take the
time to address their concerns.
METHODOLOGY
Index of 90 points or more WOW !!!
Index between 80 and 89.9 points Delighted
Index between 70 and 79.9 points Satisfied
Index between 60 and 69.9 points Content
Index between 50 and 59.9 points Dissatisfied
Index less than 50 points Detractors CAUTION !!!
• 113 Ontario Retailers – Online Survey
• More than 7,500 Ontarians (October 16th – November 7th)
• Assessed by 400 recent customers 15 years of age or older
• The Wow Retail Monitor: Based on weighted avg. of 16 dimensions
The Customer Experience Model includes 16 dimensions.
CUSTOMER
EXPERIENCE
Retail Offer
Service
Store
Time
Customization
Recommendation
1. Product quality 2. Product variety 3. Competitive prices 4. Promotional activities 5. Drive and Innovation
6. Staff courtesy 7. Staff competency 8. Staff attentiveness
9. Store ambiance 10. Store layout 11. Signage 12. Information displayed in store
13. Efficiency at checkout
14. Sense of belonging (made for me) 15. Priority given to customers from start to finish of the purchasing process (care and support, special attention) 16. Building customer loyalty
10
CUSTOMER EXPERIENCE MODEL
THE DOMINANT FACTORS
This store is made for someone like me
Promo… promo … promo ...
Silent selling and layout
Availabilty of staff of knowledgreable staff
Building customer loyalty
1.
2.
3.
4.
5.
BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014
1
2
3
4
5
6
Score: 85.6
2013 Rank: N/A
7
Score: 85.4
2013 Rank: 7
8
Score: 82.9
2013 Rank: 17
9
Score: 82.4
2013 Rank: 10
10
Score: 81.3
2013 Rank: N/A
11
Score: 81.2
2013 Rank: 8
12
Score: 81.2
2013 Rank: N/A
13
Score: 80.5
2013 Rank: 5
14
Score: 79.9
2013 Rank: N/A
15
Score: 78.7
2013 Rank: 13
BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014
5
Score: 85.9
2013 Rank: 6
4
Score: 89.3
2013 Rank: 4
BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014
3
Score: 90.8
2013 Rank: 3
BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014
2
Score: 91.3
2013 Rank: 1
BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014
1
Score: 96.2
2013 Rank: 2
BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014
RETAILER RANKING BY SECTOR
Beauty RANK RETAILERS 2014 2013
1 Yves Rocher 91.3 99.0
2 Bath & Body Works 90.8 87.7
3 The Body Shop 85.4 83.4
4 Lush 81.2 83.3
5 Sephora 80.5 84.9
6 Fruits & Passion 77.3 72.0
7 MAC Cosmetics 69.1 75.1
RETAILER RANKING BY SECTOR
Bookstores
RANK RETAILERS 2014 2013
1 Coles 82.9 76.4
2 Chapters Indigo 74.9 81.7
RETAILER RANKING BY SECTOR
Intimate Apparel
RANK RETAILERS 2014 2013
1 La Senza 78.7 77.3
2 Victoria's Secret 76.0 76.1
3 La Vie en rose 68.7 68.1
4 Aqua La vie en rose 59.3 58.1
5 Bikini Village 54.6 51.9
RETAILER RANKING BY SECTOR
Children’s Apparel
RANK RETAILERS 2014 2013
1 Bonnie Togs 75.8 77.2
2 Children's Place 68.3 69.7
RETAILER RANKING BY SECTOR
Specialty Stores RANK RETAILERS 2014 2013
1 DAVID's TEA 89.3 86.5
2 Teavana 81.3 NEW
3 Tiffany & CO 77.9 NEW
4 LCBO 74.9 72.5
5 Pandora 73.9 NEW
6 Pet Valu 71.1 NEW
7 Bulk Barn 69.3 NEW
8 The Beer Store 68.9 66.7
9 Laura Secord 63.3 66.4
9 Rocky Mountain Chocolate Factory
63.3 NEW
11 Bentley 54.5 NEW
RETAILER RANKING BY SECTOR
Pharmacies RANK RETAILERS 2014 2013
1 Pharmasave 79.9 NEW
2 Shoppers Drug Mart 73.6 72.3
3 Rexall Pharma plus 68.5 65.6
RETAILER RANKING BY SECTOR
Electronics
RANK RETAILERS 2014 2013
1 Apple Store 77.7 77.2
2 Staples 70.7 67.9
3 Best Buy 61.8 72.4
4 Future Shop 60.3 67.4
5 The Source 47.4 56.7
RETAILER RANKING BY SECTOR
Sporting Goods
RANK RETAILERS 2014 2013
1 Mountain Equipment Co-op
82.4 79.3
2 Golf Town 73.5 77.1
3 The Running Room 69.2 74
4 Foot Locker 64.2 61.5
5 Sport Chek 60.1 61.2
6 Source for Sports 57.9 NEW
7 National Sports 55.5 53.4
RETAILER RANKING BY SECTOR
Craft Stores
RANK RETAILERS 2014 2013
1 DeSerres 73.3 70.9
2 Michaels 63.1 64.5
RETAILER RANKING BY SECTOR
Hardware Stores
RANK RETAILERS 2014 2013
1 Home Hardware 71.0 72.3
2 Home Depot 56.8 71.6
2 Lowe's 56.8 73.0
4 Rona 51.7 53.8
RETAILER RANKING BY SECTOR
Games and Entertainment
RANK RETAILERS 2014 2013
1 EB Games 75.1 77.5
2 HMV 66.4 66.2
3 Toys "R" Us 52.3 53.5
RETAILER RANKING BY SECTOR
Apparel
RANK RETAILERS 2014 2013 6 Laura / Petites / Plus 70.8 72.0 7 Tommy Hilfiger 69.6 68.8
8 Guess 64.0 63.0
9 Mark's Work Wearhouse
62.6 70.1
10 Anthropologie 62.0 NEW 11 Garage 60.8 58.7
12 GAP 60.2 60.9 13 Old Navy 59.3 66.4 14 RW & Co 58.7 60.4
15 Smart Set 57.1 64.8
16 Dynamite 56.5 62.3 17 MEXX 55.8 49.1 18 Aritzia 51.7 NEW
19 Top Shop 51.4 NEW 20 Zara 51.0 51.2
21 XXI Forever 50.5 61.3 22 H&M 49.5 53.4 23 Joe Fresh 49.1 49.9
RANK RETAILERS 2014 2013
1 Penningtons 96.2 93.1
2 Addition-Elle 85.9 84.1
3 Lululemon Athletica 74.0 70.1
4 Reitmans 71.6 78.1
5 Suzy Shier 71.3 68.3
RETAILER RANKING BY SECTOR
Supermarkets
RANK RETAILERS 2014 2013
1 Longo's 76.1 72.1
2 Whole foods 72.4 73.0
3 Sobeys 69.6 65.0
4 Zehrs 67.3 66.5
5 Real Canadian Superstore 65.0 65.8
6 Loblaws 62.4 61.5
7 No frills 60.9 64.8
8 Price Chopper 58.9 58.5
9 Metro 57.5 57.4
9 FreshCo 57.5 NEW
11 Food Basics 53.5 55.3
RETAILER RANKING BY SECTOR
Footwear and bags RANK RETAILERS 2014 2013
1 Michael Kors 85.6 NEW
2 Payless ShoeSource 68.1 67.1
3 Naturalizer Shoes 67.7 66.3
4 Spring 62.5 66.9
5 ECCO 60.1 NEW
6 Aldo Shoes 58.2 58.6
7 Towne Shoes 54.6 54.1
8 Browns Shoes 53.9 54.8
9 Nine West Shoes 53.7 66.4
10 Globo 53.6 55.8
RETAILER RANKING BY SECTOR
Home Décor RANK RETAILERS 2014 2013
1 Sleep Country 81.2 NEW
2 Kitchen Stuff Plus 75.9 70.5
3 Williams-Sonoma 71.0 74.8
4 Stokes 66.9 55.4
5 IKEA 59.2 60.5
6 Crate & Barrel 58.9 64.7
7 Pier 1 Imports 57.0 59.9
8 Sears Home Decor 56.2 55.8
9 The Brick 55.6 53,0,
10 Home Sense 50.7 58.5
11 Home Outfitters 48.9 50.3
12 Bed, Bath & Beyond 45.4 60.1
RETAILER RANKING BY SECTOR
Department Stores / Big Box Retailers
RANK RETAILERS 2014 2013
1 Holt Renfrew 65.7 71.1
2 Costco 65.5 66.9
3 Walmart 59.6 57.6
4 Canadian Tire 57.1 66.8
5 Target 55.7 50.6
6 Winners 55.2 56.4
7 Sears 49.9 54.3
8 The Bay 48.0 57.9
RETAILER RANKING BY SECTOR
Telecommunications (stores & kiosks)
RANK RETAILERS 2014 2013
1 Telus 66.1 62.7
23 Bell Mobility 49.8 46.8
3 Rogers Wireless 49.6 48.1
RETAILER RANKING BY SECTOR
Convenience Stores
RANK RETAILERS 2014 2013
1 7-eleven 51.5 45
2 Mac's 46.5 43.3
THE NEXT BIG STEP !
1. Even brick and mortar stores need to integrate a virtual reality to their offer.
2. They need to be everywhere on a 24/7 basis I. On the Web and social media
II. Through mCommerce
III. Tablets
IV. Wearable and body devices
3. Their store environments need to create an experience with the product/service.
Retailing is Progressively Being Redefined by a New Service Paradigm.
THE MATRIX
WOW 204 Index
Pro
vid
e a
Co
mp
elli
ng
Exp
eri
en
ce: E
njo
yab
le, S
en
siti
ve
and
Fu
n
1
2
3
4
The Avant-Garde 14 retailers
The Innovators 25 retailers
The Conventionals
11 retailers
The Laggards 70 retailers
THE MAJORITY
THE LAGGARDS In a world where consumers can get
everything on the Web, why do they keep their stores?
DOING WELL !
THE CONVENTIONALS
Provide excellent Customer Service, but do not seem to understand that eCommerce does that as well. Providing in-store experiences is not their forte.
FORWARD THINKERS
THE INNOVATORS Good at providing interesting in-store experiences, but have not yet ensured customer experience basics. Price, variety and courtesy are still key ingredients.
THE EXAMPLES
THE AVANT-GARDE They are very good at providing the fundamentals of Customer Service. They offer good products, good prices and are helpful, but they offer something more. They provide compelling in and off store experiences
REAL WORLD & VIRTUAL
Avant-Garde Innovators Conventionals Late-Bloomers
I use their Web site 51% 46% 38% 36%
I use their site to find a location
30% 25% 20% 16%
Use their site before I go
39% 35% 27% 27%
Buy on their site after a visit
17% 13% 11% 9%
Use my Cell in store 19% 16% 11% 10%
Post positive comments on social media
15% 12% 9% 7%
Click and pick 15% 12% 9% 8%
THE NEXT FIVE YEARS
This new frugality is likely to be a lasting trend. Shoppers want to be smart and will
consider the real cost of buying cheap.
Reduced margins in retail mean retailers will have limited resources to meet increased
expectations from smart shoppers.
Retail square footage will continue to shrink. We are in for a shakeout. If you are into
delivering average experience, with an average product, at an average price to the
average customer… Lookout !!!
Omni-channel is not some intellectual construct. Customers may be one step ahead of
retailers here.
In-store experience will be more and more important. You have to be the best 21st century
retailer with a 10th century attitude to customer service.
1.
2.
3.
4.
5.