jerryking + foot_traffic   26

Supercharging retail sales through geospatial analytics
March 2019 | | McKinsey | By Rob Hearne, Alana Podreciks, Nathan Uhlenbrock, and Kelly Ungerman.

A retailer can now use geospatial analytics to understand the interactions between its online and offline channels. With these insights, it can create a higher-performing retail network.
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Is our outlet store in San Francisco hurting foot traffic and sales at our full-price store two miles away? Or is it doing the opposite—attracting new customers and making them more likely to visit both stores? How are our five Manhattan stores affecting our e-commerce revenue? Are they making consumers more likely to shop on our website or to search for our products on Amazon? If we open a new mall store in the Dallas metro area, what impact will it have on sales at our existing stores, at our department-store partners, and online?

The answers to these kinds of questions are increasingly crucial to a retailer’s success, as more and more consumers become omnichannel shoppers......most retailers don’t give adequate thought to the cross-channel impact of their stores. They rely on gut feel or on high-level analysis of aggregated sales data to gauge how their offline and online channels interact.....there’s a way for retailers (and other omnichannel businesses) to quantify cross-channel effects, thus taking the guesswork out of network optimization. Through advanced geospatial analytics and machine learning, a retailer can now generate a detailed quantitative picture of how each of its customer touchpoints—including owned stores and websites, wholesale doors, and partner e-commerce sites—affects sales at all its other touchpoints within a micromarket......US retail sales are on an upward trajectory.....despite the growth of e-commerce, the vast majority of these purchases still happened in brick-and-mortar stores. .....So why have US retailers closed thousands of stores in the past year, with thousands more closures to come?....Because the consumer journey is changing!!......Consumers are transacting in different channels....engaging across multiple channels, often simultaneously rather than sequentially. It’s critical for omnichannel retailers to have a detailed understanding of the interplay between online and offline touchpoints, and between owned and partner networks.

Quantifying cross-channel effects

the starting point is data......from a wide range of internal and external sources. Inputs into a geospatial model would ideally include not just transaction and customer data but also store-specific details such as store size and product mix; site-specific information such as foot traffic and retail intensity; environmental data, including local-area demographics; and anonymized mobile-phone location data.......A simulation model can then quantify the sales effect of each of the retailer’s customer touchpoints on its other channels within a local market. The model must be sophisticated enough to simulate the upward or downward revenue impact of adding or removing a particular touchpoint.

Geospatial analysis reveals that the consistency and magnitude of cross-channel effects vary significantly across channel types and markets.
analytics  bricks-and-mortar  cross-channel  customer_journey  customer_touchpoints  data  e-commerce  foot_traffic  geospatial  gut_feelings  location_based_services  McKinsey  moments_of_truth  omnichannel  privacy  retailers  store_closings  security_consciousness  site_selection 
march 2019 by jerryking
Japanese convenience stores limber up in effort to spur growth
April 15, 2018 | FT | Leo Lewis and Robin Harding in Tokyo YESTERDAY.

Over the next five years, FamilyMart — Japan’s second-biggest convenience store chain with revenues of ¥3.1tn ($29.5bn) — plans to open 300 Fit & Go gyms in a challenge to its two largest competitors, Seven & i Holdings and Lawson.

FamilyMart’s move into fitness highlights powerful trends that are transforming Japanese retail. They are creating fresh opportunities, say analysts, for the mighty konbini (a transliteration of “convenience”) to seize an ever greater share of consumer spend.

“Current social patterns — the rise of working women, the ageing population — are a strong following wind for the convenience store industry,” said Sadanobu Takemasu, chief executive of Lawson, the third-largest operator with ¥2.6tn sales and 14,000 stores. Rural depopulation is also on their side, with a konbini often the last shop standing in many communities.

“There are people who think Japan can manage with nothing but ecommerce and convenience stores. The big dry goods like toilet paper would come online,” he added. “All the day-to-day goods would come from the convenience store.”

But, say analysts, even the konbini face the challenge of population decline. Footfall at stores open for more than a year has fallen for 24 months in a row, the longest period since the Japan Franchise Association began compiling the statistics in 2004.

The answer to lower footfall is more revenue per customer. Having achieved dominance of their own industry through consolidation, the konbini are moving into other sectors, taking on supermarkets, coffee shops, drug stores and fast-food chains......“The convenience stores’ biggest challenge is the absence of a new category big enough to give the whole industry a lift,” said Mr Kawano, who added that even the ready-to-eat likes of the Famichiki had yet to prove their power to transform. “Each group is investing more in its fast-food offering — but there has been nothing revolutionary, no game changer.”
convenience_stores  retailers  Japanese  prepared_meals  Japan  foot_traffic  gyms  fast-food  trends  new_categories 
april 2018 by jerryking
A new industry has sprung up selling “indoor-location” services to retailers
Dec 24th 2016 | Economist

Tracking technologies are ingenious. Some flash out a code to smartphone cameras by means of LED lighting; others, such as IndoorAtlas, a startup with headquarters in California and Finland, monitor how devices disrupt a store’s geomagnetic field. With smartphone ownership rising, the market for tracking phones indoors could grow fivefold between now and 2021, to a total of $23bn, says Research and Markets, a market-research firm.

What do retailers hope to gain? The answer depends on how far they push the technology. On the most basic level, a store might notice that people often walk from “frozen goods” to “alcohol”, and then bring the two closer together. A retailer could also gain more insight into which departments are best at promoting goods—all without knowing anything about shoppers beyond where their legs take them.

If stores can persuade clients to reveal personal information, too, they stand to profit more......Apple and Google are beginning to offer indoor-location services to retailers that use the motion sensors already in handsets. These can see where their owners are, and where they are moving to, using a map of existing Wi-Fi or radio-frequency signals. Shops would not need to set up systems to follow their customers’ phones.
location_based_services  mapping  new_industries  tracking  shopping_malls  retailers  Walkbase  LBMA  IndoorAtlas  foot_traffic  Wi-Fi  Aisle411  Apple  Google  indoors 
september 2017 by jerryking
Landlords Try Turning Strip Malls Into Winter Hangouts - WSJ
By Esther Fung
Sept. 19, 2017

Landlords of strip malls are trying to take the chill out of the air by adding outdoor entertainment programs (e.g. ice-skating rinks, fire pits and programmed entertainment such as tree-lightings), in hopes of attracting more shoppers in an era of declining foot traffic.....landlords are also overseeing residential property development in their out-parcels as well.......While shopping centers typically attract shoppers focused on transactions during the fall and holiday seasons, more landlords want to create destinations for the local community that may not be entirely focused on buying something........The moves come at a time when bigger shopping center landlords are investing more to cater to changing consumer lifestyles as shoppers handle more of their transactions online...........
shopping_malls  entertainment  commercial_real_estate  landlords  foot_traffic  shifting_tastes 
september 2017 by jerryking
A Tale of Two Metrics
August 7, 2017 | | RetailNext | Ray Hartjen, Director, Content Marketing & Public Relations.

Traffic can’t alone measure the effectiveness of demand creation efforts, but some well-placed math can show retailers strong correlations over a myriad of relevant variables. More over, as my colleague Shelley E. Kohan pointed out in her post earlier this summer, “Expanding the Scope of Metrics,” Traffic is foundational for meaningful metrics like Conversion and Sales Yield (Sales per Shopper), key measurements that help managers make daily decisions on the floor from tailoring merchandising displays to allocating staffing and refining associate training.
With metrics, it’s important to remember there’re different strokes for different folks, with different measurements critical for different functions, much like financial accounting and managerial accounting serve different masters. Today’s “big data” age allows retailers to inexpensively collect, synthesize, analyze and report almost unbelievable amounts of data from an equally almost unbelievable number of data streams. Paramount is to get the right information in front of the right people at the right time.
Sometimes, the right data is Sales per Square Foot, and it certainly makes for a nice headline. But, not to be outshined, other instances call for Traffic. As Chitra Balasubramanian, RetailNext’s Head of Business Analytics, points out in the same Sourcing Journal Online article, “Traffic equals opportunity. Retailers should take advantage of store visits with loyalty programs, heightened customer service, and a great in-store experience to create a long-lasting relationship with that customer to ensure repeat visits.”
metrics  sales  foot_traffic  retailers  inexpensive  massive_data_sets  data  creating_demand  correlations  experiential_marketing  in-store  mathematics  loyalty_management  the_right_people  sales_per_square_foot 
august 2017 by jerryking
Diversification key for mall developers as retail landscape evolves
Feb. 7, 2017 | Retail Dive | by Kenneth A. Rosen and Eric S. Chafetz.

Traditional anchors like Sears/Kmart and Macy’s are beset by competition from all sides, from freestanding big-box outlets (think Home Depot and Bed Bath & Beyond), to stores attracting fashion-forward yet price-conscious consumers (Target and Kohl’s) to mounting online competition from Amazon and others.

This is leading to the loss of mall tenants, especially anchor tenants, which are major drivers of all-important foot traffic.....Mall owners are (or should be) rethinking the very definition of a mall. New tenants such as high-end restaurants, amusement parks, spas, health clubs, online pickup locations at traditional retailers and upscale movie theaters increasingly are essential components........Reshaping malls into mixed-used developments might run counter to a business model that worked for decades, where mall owners and developers could simply be mall owners and developers. However, these entities must realize that the need for new thinking and investment in new types of amenities and features is greater than ever to drive foot traffic......Technology is also key, with some mall owners now allowing customers to text them questions and get real-time answers. Other malls have implemented mobile apps to provide turn-by-turn navigation from store-to-store in a mall and directions to their parked cars. ........Consider a successful shopping center developer, in this case seeking opportunities for growth. The developer might look to acquire store leases at malls owned by competitors where an anchor has closed and redevelop the space into a cluster of smaller stores or into a mixed-use property (restaurants, movie theaters, urgent care centers, spas, etc.)......The transformation of malls will continue, and usher in changes that would have been unfathomable a decade ago. Last year, two mall owners — Simon Properties and General Growth Partners — teamed up with Authentic Brands and a few inventory liquidators to purchase hundreds of Aeropostale stores out of bankruptcy. The justification from the mall owners was that they were not merely trying to save a tenant, but based on the bargain basement price that they paid, believed they could make a profit. As 2017 unfolds with the expectation of additional retail Chapter 11s and store closures, mall developers and owners also may look at their competitors with an eye toward new opportunities.
diversification  redevelopments  shopping_malls  REITs  department_stores  big-box  cost-consciousness  e-commerce  Amazon  foot_traffic  reinvention  competitive_landscape  mapping  retailers  store_closings  offensive_tactics  transformational 
august 2017 by jerryking
Latest to Be Blamed for Retailers’ Woes: Private Equity - WSJ
By Lillian Rizzo
Updated July 30, 2017
A wave of retail bankruptcies washing through court has revived an old debate about the role of private-equity firms in accelerating the problems of companies in distress......"During that same time, Payless was also grappling with dwindling mall foot traffic, consumers shifting to spending online, changing trends and many store leases. Since the bankruptcy filing, hundreds of Payless stores have been closed, and employees have been laid off."

Vendors and landlords alleged in court papers that the dividend payouts, along with other payments to the investors, left the retailer particularly vulnerable to collapse just as technology and shifting consumer behavior upended the retail industry.

“The depletion of their coffers put the company on a dangerous path that ultimately led to this instant bankruptcy filing,” a group of Payless’s unsecured creditors said in June court papers.
retailers  bricks-and-mortar  private_equity  investors  bankruptcies  foot_traffic  creditors  store_closings 
july 2017 by jerryking
Has America Built Its Last Major Mall? - WSJ
By Esther Fung
June 27, 2017

Appetite for building enclosed malls of more than 800,000 square feet has dried up. Department stores, once dependable foot-traffic generators, are closing locations amid stiff competition from off-price retailers and the growth of online shopping.

A mall construction spree in the 1970s and 1980s has left in its wake aging properties at a time when there is little capital available for upgrades. As anchor stores close, more mall space sits idle and foot traffic wanes, hastening the march toward death.

In all, there are roughly 1,200 malls in the U.S., and some analysts see the figure bottoming out at 500 to 800.
shopping_malls  retailers  e-commerce  commercial_real_estate  Taubman  foot_traffic  department_stores 
june 2017 by jerryking
E-tailers joining the real world - The Globe and Mail
PAUL ATTFIELD
TORONTO — The Globe and Mail
Published Monday, Jun. 26, 2017

Online retailers establishing a presence in the real world, in addition to their virtual ones, is an emerging trend in retail, not to mention an opportunity for landlords to find a new wave of tenants......“I think the days of being an online-only company are going to be coming to an end, whether that’s three years from now, five years from now or what have you,”.....
e-commerce  bricks-and-mortar  omnichannel  foot_traffic  Vistaprint  online-only  cabinets  in_the_real_world 
june 2017 by jerryking
As Retailers Race to Close Stores, a Web Startup Is Opening Them - WSJ
By Khadeeja Safdar
April 30, 2017

Online brands are treading more carefully into physical retail. Several brands, such as Everlane, Casper and Warby Parker, have opened temporary stores to test out foot traffic and experiment with new concepts. ....One challenge for online brands is to ensure that new locations increase sales, rather than cannibalize existing business.

“We have to see the interplay between our online and offline channels,” said Ms. Ulman. “A customer who shops online and offline is supposed to be very valuable, but we want to understand just how much more valuable.”....Online apparel brands are finding that they don’t need much to set up a store. The evolution of point-of-sales technology means that transactions can now be made on phones and tablets. Some newer retailers don’t even keep much inventory. Bonobos, which started out selling men’s clothing online, lets customers try on items at its more than two dozen “guideshops” and mails purchases to their doorsteps.

Greats sells eight core styles of shoes in different colors and materials, making its business more mobile than that of a traditional retailer. At its new locations, the company plans to bring its own interior elements such as shelving, greenery and lighting.

“You can do a lot within four walls,” said Ms. Ulman. “All we really need is some Wi-Fi.”
sneakers  pop-ups  e-commerce  retailers  physical_retail  store_closings  shopping_malls  landlords  bricks-and-mortar  foot_traffic  omnichannel  short-term  leasing  inventory-free  cannibalization  Bonobos  Everlane  Casper  Warby_Parker  point-of-sale  brands  Wi-Fi  mens'_clothing  apparel 
june 2017 by jerryking
Hoxton Analytics: Counting footfall for retailers - FT.com
September 8, 2015 12:02 pm
Hoxton Analytics: Counting footfall for retailers
Richard Newton

The retail research company was founded with the aim of reconciling the desire of retailers to monitor footfall and shopper demographics with their customers’ dislike of in-store video surveillance.

Owen McCormack, CEO and one of the two UCL data scientists who set up the business, says pointing the camera at shoes preserves customer privacy....The information is used to manage staffing, merchandising and the measurement of customer conversion rates.
retailers  analytics  foot_traffic  privacy  in-store 
september 2015 by jerryking
The End of the Impulse Shopper - WSJ
Nov. 25, 2014 | WSJ |By SHELLY BANJO and SARA GERMANO.

An endangered species in the retail landscape is the ''impulse buy''...grocery shoppers are becoming more intentional and this is paving the way for more innovation in physical and digital merchandising.....Many Americans have the money and the will to spend. But they are time-pressed and deal savvy, visiting stores only when they run out of items like cereal or toilet paper and after doing extensive research on purchases online and with friends. They buy what they came for—and then leave. Those habits threaten more than just gum sales at checkout. Impulse is why stores offer deep discounts on loss leaders, why they put the milk in the back corner and why marketers spend heavily to pile up products in displays at the ends of the aisles. If shoppers just target the deals and don’t let their eyes wander, long cherished models for boosting sales fall apart...the symptoms of the industry’s malaise are clear enough: extended declines in shopper traffic, weak sales growth, and a discount-driven race to the bottom that is sapping pricing power.
impulse_purchasing  bricks-and-mortar  retailers  grocery  supermarkets  habits  discounting  shopping  shopping_experience  Turnstyle  intentionality  discretionary_spending  loss_leaders  foot_traffic  merchandising  frugality  decline  symptoms  endangered  time-strapped 
january 2015 by jerryking
Retail reboot: How e-commerce is forcing an industry transformation - The Globe and Mail
MARINA STRAUSS - RETAILING REPORTER
The Globe and Mail
Published Friday, Nov. 14 2014

The Future Shop store reinvention is part of a wider retail reboot sweeping through the industry as retailers and malls are being forced to adapt amid the relentless surge of e-commerce. Shopper traffic in stores is in decline. At the same time, e-commerce is soaring and has never been more competitive.

Meanwhile, consumers expect more for less, as retailers increasingly lure them with a variety of new ways to shop in person and online, with added bonuses such as free shipping.

It all adds up to intensifying competition ahead for an industry already at war as big new entrants in Canada battle with established players to win over fickle consumers.
retailers  e-commerce  Marina_Strauss  reboot  expectations  foot_traffic  decline  shopping_malls  new_entrants 
november 2014 by jerryking
New Wi-Fi Pitch: Tracker - WSJ.com
June 18, 2012 | WSJ | By ANTON TROIANOVSKI
(Send to Asif)
Network Developers Offer Retailers Ways to Keep Tabs on Customers as They Shop.

Venues like stores, malls and airports are installing Wi-Fi networks to please smartphone-toting shoppers, who use them to get faster Internet access and avoid cellular-data charges.

But Wi-Fi technology also lets the network operator keep tabs on what users are doing—from where they're standing to what websites they're viewing. That lets retailers learn in what aisle shoppers are most likely to point their iPhone's Web browser to Amazon.com. Mall owners have a new way to judge which storefronts attract the most foot traffic. And owners of Wi-Fi networks can turn their antennas into virtual billboards, charging a premium for ads sent to users' phones in prime locations.
retailers  tracking  Wi-Fi  Boingo  shopping_malls  foot_traffic  Turnstyle  location_based_services 
june 2012 by jerryking
Big-box competition forces malls to shape up - The Globe and Mail
Aug. 23, 2010 | Globe & Mail | by Sarah Boesveld.

Everyone in retail knows the customer is king. But malls that are shedding tenants have likely lost sight of the people they need to attract.

These malls must look far beyond current shoppers and target the ideal customer, says Mark Healy, partner at Satov Consultants, a Toronto-based management consultancy. Promoting cross-shopping - with a solid mix of retail that includes fashion, pharmacy, music, shoes and so on - can help attract families that may have fatter wallets than the senior citizens and teenagers who might be the more frequent customers as the mall declines, ......"It was 'Let's re-conceptualize what the mall is: Not simply a shopping destination, but a community hub.'" Enticing local physicians, community programs or the municipality to open offices in the mall can almost guarantee a boost in foot traffic, Mr. Healy says. "Look at everything from church groups to minor league soccer to parades and say, 'How do you leverage the mall as an anchor place?'"

Paired with a good mix of stores, it's a great way to get soccer moms roaming the malls when they pick up and drop off their kids, he adds. But the "mall as community hub" is more than just a strategy to drive traffic, he says. It gives the place an identity and builds a connection with shoppers, one that can be further forged if you try to weave local entrepreneurs into the mix of higher profile retailers,
anchor_tenants  big-box  cross-shopping  foot_traffic  reconceptualization  retailers  shopping_malls 
august 2010 by jerryking
Is It Smart to Choose a Location That Another Business Quit? - WSJ.com
MAY 11, 2009 | Wall Street Journal | by ROB JOHNSON. Is it
smart to venture into a spot that a previous business abandoned—a spot
that may be carrying a bit of baggage?Investigating the reason for the
last tenant’s exit is essential. Among the right questions: Did new
competition play a role? Did customer traffic in the neighborhood
decline, and why? Are there structural or serious maintenance issues in
the space, and if so can they be corrected before a new lease is signed?
Further, does the location have any negative image from the previous
business that could turn off potential customers?
small_business  real_estate  location  foot_traffic  restaurants  questions  site_selection 
may 2009 by jerryking

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