Tuesday, November 22, 2011 | Edited by Daniel Moores
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Retailers Woo the 'Mission Shoppers' Americans don't shop the way they used to. It's not only that they're going to the mall less often. Consumers in this post-recession era are also less likely to stick around and browse after they walk into a store. Marketing pros say that shoppers tend to come armed with oodles of Web research on brands and prices. They buy, then leave. No browsing. No impulse buys. The industry calls them "mission shoppers." Such consumers visit fewer stores per trip -- three, vs. five before the recession, according to research firm ShopperTrak. That means retailers need to "get more out of every person that walks through the door," says David Maddocks, a former chief marketing officer for Nike's Converse brand who now runs a consulting firm. As retailers have improved the e-commerce experience in recent years, they haven't invested in their stores, pushing an increasing number of shoppers online. "While e-commerce has been getting better, the stores have been getting worse," says Ron Boire, chief executive officer of electronics retailer Brookstone. "A lot of retailers pulled a ton of labor off the floor in '08 and '09, and now they are figuring out how to put it back in." Gap's Old Navy is using more greeters at its stores. Lowe's is arming its floorwalkers with iPhones so they can instantly check inventory and make suggestions if a certain item is unavailable. Foot Locker trains associates to ditch the traditional "How may I help you?" for "What kind of shoe are you looking for?" It's a subtle change that's more likely to start a conversation, says CEO Ken Hicks. Retailers are also reconfiguring stores to encourage browsing. Old Navy has remodeled about a third of its 1,000 stores, installing a "racetrack" layout to compel shoppers to circumnavigate the store and see more merchandise. The revamped outlets feature wider aisles to accommodate the strollers pushed by Old Navy's target customer -- thirtysomething moms. Shelves and displays are lower so shoppers need look no higher than 10 feet. And they no longer have to trek to the back of the store to try on clothes; in the redone stores, the changing rooms are in the middle, and there are "quick fit pods" for speedy try-ons. Old Navy has boosted impulse buys at checkout, too, by stocking shelves near its registers with such Gen X favorites as Mad Libs books and superhero lunch boxes. The result of all the changes: Shoppers at the remodeled stores are spending $2 more per visit, according to Gap, helping turn Old Navy into the company's best-performing unit. Other stores are taking a page from Nordstrom, which has long grouped merchandise in lifestyle categories to encourage shoppers to purchase entire outfits rather than single articles of clothing. Body Central, a Jacksonville (Fla.)-based apparel chain aimed at 18-to-35-year-old women, now organizes its clothing into such categories as "club" (evening wear) and "casual" (weekend wear). Over the past 12 months sales at the publicly traded company were up 22 percent. Body Central also has upgraded window displays and installed laptops that play hit music. "There's a plethora of information out there and more choices for the customers, and that puts pressure on execution," says CEO Allen Weinstein. "We've taken it up a notch." As retailers upgrade stores, they're also cognizant of making the shopping experience more Web-like. Teen clothier Pacific Sunwear equips salespeople with iPads so they can create outfits for customers and place orders for out-of-stock items. That's improved sales, because "we have 18-year-old guys selling to 18-year-old girls and (the clerks) don't necessarily know what they want," says Bill Bieluch, director of IT projects at the chain. Brookstone couldn't add Wi-Fi and iPads to its 300 stores fast enough, says Boire. The devices are being used to demonstrate pricey toys such as helicopters and robots that can be controlled using a mobile app. The tablets are also handy when staffers want to pitch items available online but not in stores. Next, Boire wants handheld checkout devices like the ones Apple uses in its stores. He's been racing ahead because he's worried that improvements in e-commerce will accelerate consumers' migration to the Web. And then the mission shopper will become a permanent fixture, rather than a recession-induced phenomenon. (Source: Bloomberg Businessweek, 11/10/11) |
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Pet Owners Make No Bones About Presents Just over half of American pet owners will buy gifts for their pets this holiday season, and they'll spend an average of $46 on their animals, with toys and treats topping the list, according to a new AP-Petside.com poll. Sixty-eight percent of pets getting gifts can look forward to a toy, 45 percent to food or another treat, 8 percent new bedding, 6 percent clothing, 3 percent a leash, collar or harness and 3 percent new grooming products, the poll showed. (Some pets will get more than one gift.) "Christmas is about the pets," said Gayla McCarthy, 58, of Kekaha, Hawaii, whose Australian shepherd, Echo, will find a toy under the tree. McCarthy even got a shirt for her husband as a gift to him from the dog, and she'll be giving collapsible bowls that she ordered online to all their friends' dogs. Although the average budget for pet gifts among those surveyed was $46, 72 percent of those polled said they'd spend $30 or less. Those who bought gifts for their pets last year said they spent $41 on average. Overall, 51 percent of those polled this year said they would buy holiday gifts for their pets, a figure that's been relatively stable in the last few AP-Petside.com polls. It was 53 percent last year, 52 percent in 2009 and 43 percent in 2008. Income does matter. Those making $50,000 or more say they plan to spend an average of $57 on their pets. Those making under $50,000 say it will be $29. Major pet retailers have been taking part in the Black Friday and Cyber Monday frenzy for a few years. Petco Animal Supplies Inc. plans a 72-hour "Black Friday Weekend Blowout," said Greg Seremetis, vice president of marketing. Products for both pets and pet owners will be available, he said. "Including pets in holiday gift-giving has been a growing trend in the last few years. More and more pets are being treated as family members and being included in holiday traditions, including having a gift waiting for them under the tree," he said. PetSmart Inc. plans to open stores at 7 a.m. on Black Friday, followed by a "Countdown to Christmas" sale beginning on Dec. 16, said spokeswoman Stephanie Foster. Online retailer Foster & Smith Inc. plans a live, streaming, four-hour (11 a.m.-3 p.m. EST) webcast full of sales and giveaways on Black Friday and Cyber Monday, spokesman Gordon Magee said. "As far as we know, with the exception of QVC, no other retailer has done a live broadcast like this on Black Friday and Cyber Monday," Magee said. "We are going to give it a go." Younger pet owners are more apt to say they'll buy their pet a holiday gift, including 56 percent of pet owners under age 50. Among those ages 50-64, it's 47 percent, and among seniors, 39 percent, the poll showed. Lauren Beard, 22, of Felton, Pa., and her family lavished their dog Groovy with gifts last year -- including treats and bones -- because it was the chocolate lab's first Christmas. "We still love her but it's a little less exciting this year," Beard said. So she reduced her budget of $70 last year to $50, and hopes to get some things on sale. She'll also buy a gift for Groovy's best friend and neighbor, a golden retriever named Tessie, Beard said. Ronda Singleton and her husband live in Elk, Wash., and raise and show standard poodles. But they don't plan to get gifts for their dogs or for each other. "If we need something, we go get it," she explained, adding that the dogs get treats all the time. She and her husband like to celebrate holidays with traditional dinners and church services. Thomas Koch, 69, in Raleigh, N.C., has something special to celebrate this year -- adoption of his adult son should be finalized, he said. The two will spend the holidays with their dog, Jessie, a Sheltie-chow mix, and two cats, Tanz and Callie. Last year, Jessie got toys and the cats got play mice and a large bag of catnip. "They liked it so much we just threw it on the carpet and let them roll in it," Koch said. He covered the goodies last year for a mere $8, but is setting aside $10 this year just in case prices have gone up. George Smith, 43, a father of three in Adams County, Colo., says pets are "part of the family, just like our kids." But they keep the holiday gifts for Miley, a golden retriever, and Zippity, a cat, low-key: no fancy wrapping or stockings, just $10 worth of toys and treats. Steve Gottula's budget was $100 last year and he figures it will run about the same this year for his two dogs and seven cats. Odie, a dachshund, and Sky, a Dalmatian, will get special bones, and the cats will get catnip and mouse balls. Gottula, 48, his wife Leigh (she's the one who brings home the strays) and five kids (ages 6 to 16) live with the nine pets in Spring, Texas. His daughters have made stockings for the pets -- with their initials -- and they are always part of holiday celebrations, Gottula said. "The cats like to play with the paper and ribbon and get lost in the boxes and wrappings," he said. What do his pets mean to him? "They are entertaining, they are companions. They have little senses of humor. They all have personalities. If you give love to them they give it back -- it's unconditional," he said. (Source: The Associated Press, 11/13/11) |
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Beverages Rise to the Top at Convenience Stores When looking at convenience store categories growing fastest by dollar and unit sales in 2011, beverages rise to the top, led by energy and sports drinks and ready-to-drink tea, according to SymphonyIRI. But even the largest of all beverage categories -- carbonated soft drinks (CSDs) -- has shown some upward lift after several years in a sales morass, said CSP's Midyear Category Data Report. For the 12 weeks ending July 10, CSD dollar sales rose 8.3%, with units growing 8.9%. As a result, the channel was able to take a half-point of share from food, drug and mass, said Matt McCourt, director of convenience, retail client solutions, for SymphonyIRI. "Most of it is driven by low-calorie and diets, which are up 1%," he said. Regular soft drinks were off 0.4%. On the alcohol-beverage side, it's high time for retailers to raise a glass and celebrate, especially after years of flat sales. Strong promotions from key suppliers such as MillerCoors and Anheuser-Busch InBev have encouraged consumers to embrace bigger-ticket premium and above-premium brews with greater frequency, said Tom Fox, partner in beverage consultancy CM Profit Group, Troy, Mich. "Based on what suppliers are doing with pricing, they've managed the gap between premium and below-premium products in a way where it encourages tradeup," Fox said. Other segments showing renewed promise are imports and progressive adult beverages (PABs) -- or flavored malt beverages -- which are up by double digits, SymphonyIRI figures showed. Even after years of explosive growth, crafts still remain significantly underdeveloped in c-stores. Case sales rose 10.7% in the 52 weeks ending May 15. But given the increasingly manageable price gaps between the craft and premium sectors, crafts continue to represent a strong profit opportunity. "Imports had some flat years with the surge on crafts... but that's shifting with the likes of Corona and Heineken, which are already pretty well developed in c-stores," Fox said. "With the economy improving, they're very much affordable luxuries." Retailers are also finding strong profit potential in the wine sector; c-store unit sales rose 8.5% in the 52 weeks ending May 15. "The velocity of wine will never be that of beer, but it can be a good investment," said Fox. "No doubt it can have an impact to the overall transaction size, and it does attract a valuable consumer." (Source: Convenience Store/Petroleum News, 11/10/11) |
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