Retailers pull out stops to lure shoppers

Pasadena Star News

By: Cynthia Kurtz
Posted 4/03/2013

 
California sales were up 6.1 percent for the fourth quarter of 2012 (October to December) compared to the same period in 2011 according to a recent report released by HdL Companies, an economic data analysis consultant located here in the SGV serving 360 clients in six states. That is good news since consumer spending is a key to economic recovery. 

For retailers the fourth quarter numbers that matter are general consumer goods spending. Holiday sales often make or break the whole year for a retailer and they also received good news with receipts up by 4.3 percent over 2011.

Year to year comparisons alone don’t tell the story about what is happening inside retail. Things are changing quickly. Looking at the 2012 holiday trends gives us a glimpse of how shoppers are dictating what they want before they will part with their hard earned dollars. 

Starting Black Friday and continuing throughout holiday shopping season, brick and mortar retailers offered expanded hours including being open on holidays, opening as early and 8:00 am, and closing well into the wee hours. While some consumers expressed concern about the nontraditional hours, many retailers concluded it was a good move.

At least in part the expanded hours are in reaction to the explosion of e-commerce competition. On-line shopping increased as much as 17 percent over 2011 while in-store sales declined by 2 percent.

One way traditional stores are attempting to adapt is by merging the on-line and in-store experiences so they complement rather than compete against each other. Until recently a shopper could often find different merchandise, pricing and specials when shopping in the store and on-line with the same retailer. It was confusing and frustrating. Retailers quickly realized a confused or frustrated shopper was an ex-shopper.

Meshing the two experiences so a shopper can order the merchandise on-line and pick it up at the store or order at the store for home delivery is quickly becoming the norm. The combined showroom/on-line experience gives shoppers more choices.

Free shipping is a must during the holidays and a few retailers are finding that continuing it year round helps blur the in-store versus on-line experience. The message is “how can we help you make the decision to buy whenever and wherever you wish?”  And it seems to be working.

Hype also helps. Conventional wisdom use to be that big specials should be kept secret until that day of the sale. Otherwise they would hurt pre-sale sales. But getting shoppers excited seems to be edging out the surprise sale. Shopping is a social experience often planned with friends and family, like going to the movies or sporting event. Advance advertising makes shopping “the event.”

Comparing prices, especially on large ticket items, use to be labor intensive but apps have changed everything. With the flick of a finger, a shopper can know everything about competitors’ prices without ever leaving the store. What is a savvy retailer to do? Match or beat the competitors’ price, of course. 

Gift cards use to be common for durable goods but now consumers want cards for groceries, coffee, entertainment and dining. Considered more appropriate than giving cash...even though they are basically the same thing... today gift cards are the number one requested gift and retailers are ready to accommodate.

Once again the Consumer is King.