Matt Wilson Comments on Controversial Quotes by A&F CEO

SBC’s Matt Wilson was quoted in the Columbus Dispatch discussing the controversial quotes from Abercrombie & Fitch’s CEO, Mike Jeffries. Click Here to read the article.

The Rise of Shopper Marketing, or How I Learned to Pay Attention to the Shopper, Not Just the Consumer

Here at SBC Advertising, we've been doing some thinking about Shopper Marketing, an emerging discipline that is becoming increasingly more important for retailers.


What is Shopper Marketing, you ask?

Essentially, it studies, targets and caters to the shopper, and, more importantly, seeks to understand how individuals act when they're actually in the store or on the website making a purchase. While this may sound like the same thing as traditional consumer research, it is in fact as different as night and day.

For example, when asked during consumer research, an individual may tell you they prefer a certain brand and are loyal to a fault. But when the shopper gets into the store, it can be a different story. That loyal consumer suddenly decides to buy a competing product. What happened?

Shopper Marketing will tell you that the decision was, in fact, not sudden at all. Identifying what influences and drives a sale when a consumer becomes a shopper is what shopper marketing is all about.

Does a shopper just want to get in and get out? Is a shopper looking for the best value? Is a shopper trying to find the lowest price? Understanding these purchasing drivers is the key to driving growth. It's so important, in fact, that many of the world's largest consumer products companies are spending time and money to delve into the issue. InStoreMarketer.org reports that, for the last year a group of leading retail and industry supporters have been working together on the Retail Commission on Shopper Marketing. The commission has tasked itself with the goal of developing a blueprint for Shopper Marketing best practices. Industry-leading retailers Campbell Soup Co., Coca-Cola Co., Giant Eagle, Kellogg Co. and Walmart, among many others, signed on to be a part of this effort.

Meanwhile, according to a study from the Grocery Manufacturers Association, 83% of consumer package goods companies surveyed expect to increase their shopper-marketing investment over the next three years, while 55% of those companies expect their investment in shopper marketing will exceed all other marketing spending, including Internet and social media.

At SBC, we believe that while delving into shopper marketing is valuable, it's important to realize that consumers aren't as easy to influence as they used to be, at the store level or elsewhere. They are much savvier and they have access to instant information about goods and services they purchase because of the indispensable smart phone. As a result, spur-of-the moment purchase decisions have decreased in frequency. That's why it's important to engage shoppers on a regular basis, in places or scenarios where they are progressing down the path from consumer to shopper.

Today a well-crafted marketing plan will not only cover shopper marketing but include mobile as a key component of the plan as cell phones, especially smart phones, and now tablets have increasingly become a source of easily accessible information for consumers and shoppers.

Image: Ambro/freedigitalphotos.net

Sources: 
Shopper Marketing: Racing Along the Path to Purchase, Advertising Age, 2010 
Retail Commission: A "Road Map" to Shopper Marketing, InStoreMarketer.Org, February 2010 (registration required)     

A Tailored Experience: Local Preferences Rule!

In 2008 Macy's instituted a pilot program to test specialized, local merchandising in 20 markets and then rolled out My Macy's - a program which stocks merchandise based on popular items in local stores.

Here are some examples of what stores are carrying. In Memphis, Tennessee this past holiday season Macy's stores stocked up on Elvis Christmas tree ornaments while in San Bernadino, California stores discovered a need for more extra-large men's clothing.

In our own backyard, Parma, Ohio stores found the demand for electric pizzelle presses (used to make a certain type of Italian cookie). Macy's in Sandusky carries high-end lingerie, something they may never have had available before My Macy's.

Not only does My Macy's engage the local consumer, but employees have a chance to take ownership of their stores and have more say in merchandising. Stores in Las Vegas place customer request logs at every register so managers and employees can reference the logs and pass along the information to local merchandising managers.

Is there a downside to local merchandising? How deliberate does a customer need to be to get what she wants? Is there a possibility that retail can get too regionally tailored, thereby excluding certain consumers? (I mean, really - who wants to make pizzelles from scratch?) And what if you aren't a local?

So far, customers seem to enjoy the new experience. We expect other big retailers to follow suit.

Image: freedigitalphotos.net 

Sources:
Retailers on quest to rekindle the personal touch of a bygone era, adage.com, 2/14/11
"My Macy's" Engage Employees, experiencematters.wordpress.com, 11/30/10
My Macy's tailors merchandise to Northeast Ohio tastes, cleveland.com, 11/2/10
"My Macy's" to Keep it Local, pe.com, 10/27/10

Best Buy a Freshman in the Super Bowl Ad Circus

Did you know that Best Buy has never run a commercial during the Super Bowl? That's a bit surprising given that they seem like a good fit for the Super Bowl ad line up with their myriad of home entertainment systems and big screen TVs.

This year they're joining the circus because Best Buy has big news to share.

They plan to kick off a campaign with a :30 Super Bowl spot that will run throughout the year. Drew Panayiotou, Sr. VP of U.S. Marketing says Best Buy is going to "revolutionize" retailing in one 30 second spots (Really?). Panayiotou also says, "the ad may include a noteworthy celebrity or two." Hmmmm.
Wonder who those will be?

The spot is currently projected to run in the third quarter of the game.

Image: Salvatore Vuono/freedigitalphotos.net

Source:
Best Buy to Make First Super Bowl Appearance, adage.com, 12/3/10    

Has VW already won the Super Bowl ad war?

There seems to be a front runner for the winning Super Bowl ad from VW. Fans of the ad say the "brilliance about the commercial is that it really isn't an advert for a car at all, but more about the imagination of a child playing at being Darth Vader."

Posted on YouTube earlier this week the spot already has over 6 million views.

What do you think - does Volkswagen have a winner?
http://bit.ly/e0j2z3


Image: germancarblog.com 

Sources:
Volkswagen Star Wars Super Bowl Advert, breakingglobalnews.com, 2/4/11 

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Pepsi Max Teams up with Doritos to "Crash the Super Bowl"

Last year Pepsi opted out of advertising in the Super Bowl and focused their $20 million efforts on The Pepsi Refresh Project, the much-celebrated program that awards grants for programs to bring great ideas into communities across the country. This year Pepsi Max will team up with their sister brand Doritos in the Crash the Super Bowl consumer-generated ad contest. Doritos has been running the contest since 2007.

Past ads have been enjoyable: Do you remember the young man who told his mother's too-excited date to  "keep your hands off my mamma, keep your hands off my Doritos?"

Or how about the naughty gym rats who steal Tim's bag of Doritos encouraging Tim to don a Samurai suit made of Doritos while flinging the triple pointed nacho chips at the thieves?

Get ready for six more spots this year. Out of 5,600 entries this year, the winners have already been chosen but only six spots will air during the big game: 3 for Pepsi Max and 3 for Doritos.

Check your advertising savvy and see if you can spot the winners out of the finalists here:
http://www.crashthesuperbowl.com/# 

Image: Paul/freedigitalphotos.net

Source:
Three Lessons from Pepsi's Super Bowl XLV Ad Campaign, forbes.com, 2/1/11

A Sweet Valentine's Story (for retailers)

According to the National Retail Foundation's 2011 Valentine's Day Consumer Intentions and Actions Survey, consumer spending will continue through Valentine's Day this year bringing the holiday total to an estimated $15.7 billion. Couples will not only be doting on each other, the average man spending twice as much as the average woman, but will also be generous with friends and co-workers in addition to Fido, Spot and Whiskers. 

With Valentine's Day two weeks away, will you have your heart or your cash (perhaps both) 

in your hand?

• Couples this year will spend an average of $68.98 on significant others or spouses, up from $63.43  last year
• The average man plans to spend $158.71 while the average woman plans to spend $75.79

• The average person will spend:
• $116.21 on traditional Valentine's Day merchandise up 11% over last year's $103
• $5.04 on pets up from $3.27 last year  

• Consumers will spend an average of:
• $6.30 on friends
• $4.97 on classmates and teachers
• $3.41 on co-workers

52.1% of consumers are planning to purchase greeting cards, the most popular gift option, while 17.7% of consumers are planning to purchase jewelry, up from 15.5% from last year

• Consumers are planning to spend on:
• Shiny, happy...ears, fingers and necks?
• $3.5 billion on jewelry up from an estimated $3.0 billion from last year
• $3.4 billion on dining out up from $3.3 billion last year
• $1.6 billion on clothing up from $1.5 billion last year

• Stop and smell spend money on the roses
• $1.7 billion on flowers
• $1.5 billion on candy
• $1.1 billion on greeting cards

• Where will consumers spend their heart-earned money?
• 36.6% discount stores
• 30.5% department stores
• 19.4% specialty stores
• 18.1% online

• Greeting Card Fun Facts
• According to the Greeting Card Association, as estimated one billion valentine cards are sent each year, making Valentine's Day the second largest card-sending holiday of the year (behind Christmas)
• Approximately 80% of all valentines are purchased by women
• In addition to the United States, Valentine's Day is celebrated in Canada, Mexico, the United Kingdom, France and Australia

• A Little History
• Valentine greetings were popular as far back as the Middle Ages, although written valentines didn't emerge until after 1400
• The oldest known Valentine card is on display at the British Museum
• The first commercial Valentine's Day greeting cards produced in the U.S. were created in the 1840's by Esther A. Howland, known as the Mother of the Valentine
• Howland produced handiwork with lace, ribbons and colorful pictures known as "scrap"

Image:Patchareeya99 / FreeDigitalPhotos.net/freedigitalphotos.net

Sources:
Love Is In the Air this Valentine's Day According to NRF, nrf.com, 1/27/11
About Greeting Cards - General Facts, greetingcard.org
Valentine's Day, history.com

Holiday Retail Darling 2.0 - Mobile Commerce

"In 2008 and 2009 , mobile started out as a science project. It's accelerated so fast that it's becoming more mission-critical for retailers to deliver a mobile experience in a professional way."  

- Dave Sikora, Digby

In our 2009 post-holiday blog we declared online shopping as the holiday retail darling of the holiday season. But this year there' s a new darling in town - it's that handy portable device we call a mobile phone. Mobile commerce, or m-commerce, made a significant contribution as the new tech trend for the holiday season as more shoppers were going online than ever before.

People used their phone just like their computers at home for online shopping: comparing prices, purchasing items and finding the nearest store location as well as inventory in stock locally.


Retailers hopped on board as they invested in m-commerce to prepare for the holidays. That's a smart move considering how m-commerce promotions encourage impulse buys, and knowing the exact location of shoppers lets merchants deliver coupons and offers to users when they're most likely to spend. Mobile apps like Foursquare  encourages consumers to "check in" and retailers took advantage of the information. They offered the ability to scan barcodes or get discounts on their mobile device while out shopping. With moves like that, retailers presented a seamless shopping experience online and offline.


M-commerce expected to triple this year, and double again next year; but US lags behind others

• m-commerce is expected to triple to $3 billion in the U.S. this year and reach $6 billion next year
• However, U.S. consumers are still behind foreign consumers in terms of purchasing with a mobile phone
• 7.9% of U.S. consumers have bought something with a phone vs.
• 32% of consumers in Taiwan have bought something with a phone (This tops the list of major industrialized countries (per IE Market Research Corp)
• About 13% of consumers in Finland have bought something with a phone (#1 European country)

M-commerce played a significant role so far in the 2010 holiday online shopping experience

• Almost 60% of mobile consumers expect to use their phones to help with shopping plans and holiday celebrations this season
• Nearly 4% of all Cyber Monday shoppers used smartphones and other devices to make their purchases
• According to research data from Google/OTX:
• 52% of U.S. smartphone users plan to use their phone to compare prices during the holiday shopping season
• 40% plan to use their phones to read product reviews
• According to the 2010 eholiday pre-holiday survey from National Retail Federation
• Shoppers using smartphones will account for at least $127 billion, or 28%, of the $447 billion the NRF predicts consumers will spend this holiday season 
• Over one quarter of consumers said they definitely planned to use their smartphone to research or make holiday purchases

Are you planning to ride the m-commerce wave this holiday season? You won't be alone!

Image: Carlos Porto/freedigitalphotos.net 

Sources:

7.9% of U.S. consumers bought item on smart phone, SFgate.com, 12/3/10

It's a holly, jolly (mobile) Christmas, shop.org, 12/2/10
Best Buy, Amazon.com Try to Reach Shoppers Through Their Phones, businessweek.com, 12/2/10
U.S. Online Sales on Cyber Monday Climbed 16%, ComScore Says, bloomberg.com, 12/1/10
Cyber Monday sales hit record $1B, bizjournals.com 12/1/10

Retailers Seeing Green on Black Friday Weekend

Several predictions for the 2010 Black Friday weekend came true! 

1. There were more shoppers in stores and visiting websites over this Black Friday weekend 
2. More money was spent than a year ago  
3. Shoppers purchased more fun gifts (jewelry) instead of practical gifts (coffee makers)  

But hold on! Black Friday 2010 weekend looked good, but consumers are still concerned with the economy, so retailers are urged to continue their low pricing and can't-pass-up offers.

"As retailers look ahead to the first few weeks of December, it will be important for them to keep momentum going with savings and incentives that holiday shoppers simply can't pass up."

Matthew Shay, NRF President and CEO

By The Numbers...

• 212 million shoppers visited stores and websites over Black Friday weekend, up from 195 million last year
• The average shopper this weekend spent $365.34, up fro last year's $343.31
• Total spending reached an estimated $45 billion
• The number of people who shop on Thanksgiving day, both online and in stores, has doubled over the past five years, from 10.3 million in 2005 to 22.3 million in 2010

Consumers clad in PJs visited stores earlier than ever

• The number of people who began their Black Friday shopping at midnight tripled this year from 3.3% last year to 9.5% in 201
• By 4 a.m. 24% of Black Friday shoppers were already in stores

Some purchasing highlights

• The number of people who purchased jewelry over the weekend rose from 11.7% last year to 14.3% this year
• Gift cards rose from 21.2% last year to 24.7% 
• Toys came back from 32.2% to 33.6%
• Books and electronics rose from 40.3 last year to 42.1%

Department stores saw increase in traffic
Both department stores (52% this year vs. 49.4% last year) and clothing stores (24.4% vs. 22.9%) saw an increase in traffic while the percentage of people who shopped at discounters declined 7.2% from 43.2% last year to 40.3% this year

Retailers paid more attention to online deals, and shoppers responded
The percentage of people who shopped online this weekend rose 15.2% from 28.5% last year to 33.6% this year

Image: Simon Howden/freedigitalphotos.net 

Sources
NRF: Black Friday Weekend Sees Bigger Crowds, $45 Billion in Spending, nrf.com, 11/28/10

"I'm Dreaming of a (cautious) Christmas"

While retailers experienced a decent back-to-school season this year, experts warn not to expect too much for the holiday season. Sales are predicted to be up, but experts say consumers will shop with caution and wait until the last minute to shop for the best deals.  They advise retailers to offer promotions, rewards and coupons to draw in consumers. Why? Consumers are expected to do even more comparison shopping and purchasing online than last year. Although the high unemployment rate (holding at 9.6%) continues to put a damper on retail sales, positive September sales for department stores and teen retailers (discount retailers struggled!) might give a glimmer of hope for the holiday retail season.

September sales soar...for some
September sales for many retailers show a light at the end of the recession tunnel, especially departments stores and teen retailers. Surprisingly, discount retailers did not fare as well.

Here are some highlights:
Teen retailers

• Abercrombie and Fitch posted an increase total comp store sales of 13% vs. an 18% decrease from last year
• American Eagle Outfitters, Inc. posted an increase in comp store sales of 4% compared to flat from the year before

Department stores

• Macy's same store sales increased 4.8% vs. a 2.3% drop from last year
• JC Penney Company, Inc. reported a 5.1% increase in comp store sales vs. a 1.4% decrease from last year
• Limited Brands comp store sales rose a whopping 12% vs. a 1.7% decrease from last year

Discount stores

• TJX Companies posted a 1% increase in consolidated comp store sales vs. a 7% increase from last year
• Kohl's reported only a 3% increase vs. a 5.5% increase for the same period last year
• Ross Stores, Inc. posted same store sales of 2% vs. an 8% increase from last year
• Although Walmart doesn't report monthly sales any more, they have posted five consecutive quarters of negative same store sales.

What does this shift foretell? Perhaps just having low prices isn't enough - retailers may need to show they have the right merchandise to bring consumers into their store.

Overall Holiday Sales Predictions from the Experts
Deloitte predicts that retailers can expect about a 2% rise in sales, beating last year's 1% increase, and most of the boost will come from non-store sales such as catalog, interactive television and online. In fact, Deloitte expects a 15% jump in non-store sales, nearly two-thirds of which will be online and the rest of which will come through catalogs and television.

"Online activity may also influence in-store shopping this holiday season, as social networks and mobile applications are playing a more prominent role in the shopping process."  

-Alison Paul, Deloitte Retails Sector Vice Chairman

Kantar Retail calls for fourth quarter retail sales to rise 2.5% better than the 0.5% gain from the same period a year ago. Although they predict the holidays will be a soft spot, Kantar says it's not an indication of a double-dip recession. The slow-rising economy, though, will keep consumers in a thrifty mode, which means consumers will be looking for discounts and deals, as well as shopping at dollar stores and small-format value retailers. Kantar found that one-third of consumers plan to comparison shop online before heading to the stores, and that one in every 20 customers will bypass stores completely.


National Retail Federation expects holiday sales to rise 2.3% over last year and that sales will reach $447.1 billion, the biggest increase in three years in part because of more aggressive pricing. This would be a vast improvement over lat year's 0.4% rise and the 3.9% holiday sales decline in 2008.

"Though the retail industry is on stronger footing than last year, companies are closely watching key economic indicators like employment and consumer confidence before getting too optimistic that the recession is behind them." -NRF President and CEO Matthew Shay

The International Council of Shopping Centers released its forecast Tuesday with the most optimistic predictions of an increase in holiday sales landing between 3% and 3.5%

What are consumers thinking?
Kantar Retail's September ShopperScape survey shows early spending plans by shoppers.

• 7% of shoppers are planning to spend more for the holidays vs. 9% from last year
• 19% of Gen Y shoppers plan to spend more - the strongest among all generations
• 38% of shoppers plan to spend less on holiday gifts vs. 40% from last year
• 42% of Baby Boomers plan to spend less - representing the greatest cutbacks between all generations
• 49% of shoppers plan to spend about the same compared with 46% from last year
• 55% of seniors are most likely to hold their holiday spending steady

Although the retail industry experienced a good back-to-school season and many stores saw positive September same store sales, with nearly 15 million people out of work, and until unemployment changes, retailers may not see a strong holiday season this year. Sales are certainly expected to be up, especially compared to the last two years, but the recession continues to have an effect on consumer spending. The holiday season shouldn't be completely dreary though, as long as retailers offer discounts and promotions, the consumers will shop.


Image: dream designs/freedigitalphotos.net


Sources:
September Retail Sales Lift Holiday Sales Expectations, 123jump.com, 10/9/10
Employment Situation Summary, bls.gov, 10/8/10
September Same-Store Sales Grow Slightly Slower, Kantar Retail Reports, retailforward.com, 10/7/10
September Retail Sales Rise; Holiday Looks Happy, multichannelmerchant.com, 10/7/10
Retailers' Holiday Hinges on Discounts, wsj.com, 10/6/10
Retailers Need 'Promo Mojo' to Survive Holiday 2010, cnbc.com, 9/30/10
Deloitte: Online will drive small uptick in holiday sales, bizreport.com, 9/26/10
Retailers Cautious As They Hire Holiday Temps, npr.org, 9/19/10
Analysis: As school starts, retail thoughts turn to holidays, reuters.com, 9/3/10

Back-to-School 2010 - A step in the right direction

Overall back-to-school sales for 2010 were up compared to sales from last year. Oppressive heat drove people inside to air conditioned stores that not only had severely  discounted merchandise (as much as 50%), but were discounting as early as July. In addition, some states had tax free shopping weeks. Although sales are up for back-to school this year, they are still below those of 2008. With consumer confidence up for now (barely), retailers hope the positive back-to-school sales will be a good sign for the holidays.   

A Few More Predictions

• 2010 Consumer Intentions and Actions Back to School survey found the average American family will spend $606.40 on clothes, shoes, supplies and electronics, compared to $548.72 last year, and close to the $594.24 in 2008.
• Total spending on school-aged children in grades K-12 is expected to reach $21.35 billion.
• Combined K-12 and college spending will reach $55.12 billion.

What Really Happened

Reuters tracks same-store sales for a group of 27 national retail chains, the following results are based on the information they gathered

• Retailers posted a 3.3% gain in same-store sales for August, ahead of the 2.5% rise that analysts projected
• This follows a 2.9% drop a year ago and a 2.7% rise in July
• Among the clear sales winners in August were clothing and stores catering to teen and young adult shoppers
• Electronics sales rose a modest 2.3% from the year before but were down 9.9% from two years ago
• 67% of the retailers that reported same-store sales beat expectations, with mass merchants and apparel retailers doing so by the widest margins
• The last week of August was particularly strong
• Spending on many non-essentials like fashions are still below 2008
• With high unemployment and weak consumer sentiment*, shoppers were still focused on low prices when choosing what to buy
• *An index of consumer confidence released the last week of August by the Conference Board, a private research group, rose just 2.5 points in August, to 53.5
• The International Council of Shopping Centers said forecast September sales would rise 3%

Clothing

• Limited Brands posted a 10% surge in sales last month, beating analysts' estimates for a 7.3% increase
• 40% discounts at Abercrombie & Fitch jumped 6% in the month, passing estimates for a gain of 5.7%
• Note: In August last year, when Abercrombie was holding on to its "no discounts" strategy, sales sank 29%
• Wet Seal reported a 1.1% sales gain vs. estimates for a 3.5% decline
• Macy's 4.3% gain in same-store sales was ahead of projections for a 4% rise
• Possible reasons: 1) Macy's shift to tailoring merchandise to local tastes and more centralized operations that allow quicker decisions. 2) A strong reception to merchandise such as the new Madonna-inspired Material Girl line
• Kohl's Corp. also had a solid showing, with a 4.5% increase in same-store sales, when 2.6% was projected
• TJX Companies posted a 2% increase in same-store sales, just missing the 2.4% expectation
• JC Penney Co. had 2.3% rise that beat analysts' expectations for a 1.6% gain
• American Eagle Outfitters Inc., reported a 1% comparable-store sales gain when analysts' projected a 1.1% rise
• Only Aeropostale Inc.'s same-store sales fell 1% for the month, compared with expectations for a 1.2% rise and a 9% gain a year ago

Discount Stores

• Overall, discounters saw a 4.3% increase, compared with expectations for a 3.1% gain

Walmart Stores Inc., among other retailers reported rising inventory levels as part of their quarterly earnings in August, a sign that they may be forced to mark down merchandise more than anticipated in order to clear stocks.

• Walmart Stores Inc. has posted five straight quarters of declines in U.S. comparable-store sales
• Target Corp. reported a 1.8% gain in same-store sales for the month, falling just short of expectations for a 2% increase

Why?

• Pent up demand

• Mike Gatti from National Retail Federation says that "People may not have bought new shoes last year, so this year there's a bit more of a need."

• Coupons, sales, promotions

• More families this year say their school purchases were influenced by coupons, sales and/or promotions. 17% of families with children in grades K-12 say 100% of their purchases were influenced by bargains and coupons, up from 14.7% of families last year
• The level of back-to-school discounts, as much as 50% off, was the highest seen in a number of years
• Sales also came much earlier than usual as retailers were cutting prices in early July

• Weather

• Consumers sought shelter in the air conditioned stores
• August 2010 was the warmest since 1983 and second warmest in 50 years
• Off-price retailer TJX Companies Inc even said its sales were hurt slightly because it did not have enough summer clothes in stock

• Economics 

• Tax-free shopping weeks in several states, designed to boost school-related shopping in the month, likely boosted traffic and purchases in stores

Winners of TV

NRF's latest Back-to-School/College Consumer Intentions and Actions survey showed that...

• The top ten back-to-school commercials came from Walmart, Target, Staples, JC Penney, Kmart, Kohl's Old Navy, Office Depot, Office Max and Sears.
• 27% of families say the commercials from those retailers influenced them to shop at that particular store

Data from Ace Metrix revealed...

• A Kohl's ad promoting a "Vote for Your School" contest tie-in with Facebook is the early winner (614 out of 950)
• Target has been the most active back-to-school advertiser with 13 national breaking ads, they are also running the worst scoring ad, "The Roommate and her Gathering" (355) also featuring a Facebok tie-in
• Target had just one ad in the Top 10 retail back-to-school ads
• Walmart ran three back-to-school ads with one, "Last Night of Lightning Bugs" making the top ten, yet the overall number of ads was down from last year
• Interesting to note that both the highest scoring and the lowest scoring ad feature a tie-in with Facebook 

September Predictions

Although the monthly figures are on par with those posted in the beginning of the year, when people were starting to feel good about the economy, retailers will endure an uphill climb in September as they will be facing comparisons against positive same-store sales results for the first time in a year.

Image: Maggie Smith/Freedigitalphotos.net 

Sources:

Discounts, heat fuel August retail sales beat, reuters.com, 9/2/10

Limited Brands, Abercrombie report solid sales gains for August, dispatch.com, 9/2/10

Retailers Show Surprising Strength in August Sales, wsj.com, 9/2/10

Back to school sales get an A, cnn.com, 9/2/10

Retail Sales Prep: Back-to-School Edition, cnbc.com, 9/1/10

Back-to-School Shopping Bust Heralds Holiday Woes, wsj.com, 8/31/10

Who's Winning the Back-to-School Television Advertising Battle? Businesswire.com, 8/19/10

Average Family Has Completed More School Shopping Compared to Same Time Last Year, nrf.com, 8/19/10

Modest Rise in Back-To-School Spending, brandweek.com, 8/10/10

Back to School Sales Up As Parents Replenish Children's Needs, According to NRF, nrf.com, 7/15/10

Gift card watch: consumers buying more gift cards

Retailers may be able to breathe a small sigh of relief when it comes to their gift card business.

According to a recent report by The Hartman Group, the number of consumers purchasing gift cards has significantly increased over the past six months. This interesting finding suggests that consumers may actually view gift cards as practical gifts in this tough economy. If this trend continues for the remainder of the year, it could spell good things for sales of gift cards at the holiday gift-giving season.

However, the report also notes that while more consumers are purchasing gift cards, consumers are actually spending less on gift cards. The study suggests that the lower rate of spending on gift cards can be attributed to consumers’ poor views of the economy. In addition to that, almost half of consumers are reluctant to purchase gift cards due to the myriad of retailer and restaurant bankruptcies.

We’ll be following what’s happening on the gift card front over the course of this year. Be sure to stop back for updates!

[via The Hartman Group: Gift Card Buying Trends, 2009]

Survey says! Americans more positive about industries in '09

According to a recent Gallup poll, Americans are more positive about most major businesses and industries this year, after being more negative nearly across the board in 2008.

Some notable findings from the poll include:

- The computer industry remains the most positively rated at 62 percent, but the restaurant industry follows not far behind at 57 percent.

- The figures for the restaurant industry are up 6 percentage points over the 2008 numbers.

- The biggest gainers since last year are the grocery industry, the airline industry, and the federal government

- The banking and automobile industry scores continue to drop over this year.

[via Gallup]

Walmart's bold move: scoring a product's environmental impact

Walmart recently unveiled a plan to determine the social and environmental impact of every product they sell. Through the implementation of a product indexing system, consumers will be able to evaluate a product's impact on the environment. The retail giant has already assembled a team of experts (including members of the Environmental Defense Fund) who will be charged with formulating the index.

Walmart's recent efforts on the environmental front are no doubt impressive. When they introduced compact florescent light bulbs in their stores, they made a big statement about their environmental priorities. The move to create a system that scores a product's sustainability has the potential to not only affect how manufacturers make their products, but also how other retailers classify them.

This initiative could mean big changes for the future of retail as we know it.

[image via the chic ecologist]

Survey Suggests Creating Retail “Wow” Moments Can Be Tough

A new consumer survey about customer service found there are five major areas that contribute to a great shopping experience. However, survey respondents cited a total of 28 elements that can contribute to a great shopping experience.

According to the report, an experience that really "wows" shoppers typically contains 10 of those 28 elements – simultaneously. And to further reduce a retailer’s chances for a “wow” moment is that the elements (of course) vary among individuals. The challenge for retailers to excel in customer service is down right daunting!

But worry not, dear retailers, for all is not lost. The report offers a strategies for beating the variability in preference among consumers.

[via Forbes]