Wednesday, December 31, 2014

Is In-Store Pickup Any Faster Than Just Shopping At The Store?

(Molly)
For years, an increasing number of retailers have been pushing their “buy online, pickup in store” (BOPIS, for all you acronym lovers) option as a expedient option that offers the convenience of online shopping without the hassle of having to search the aisles. But is it really any faster than traditional bricks-and-mortar shopping?
The folks at StellaService recently put this idea to the test at 11 of the country’s biggest retailers offering BOPIS — Best Buy, Home Depot, Lowe’s, Macy’s, Nordstrom, Office Depot, Sears, Staples, Target, Toys ‘R Us, and Walmart.
At each location, shoppers made a BOPIS purchase and bought the same item in the traditional manner.
In terms of the amount of time spent in the store, BOPIS did seem to speed things up a bit, with the average BOPIS shopper only needing 5.4 minutes to reach the cashier, compared to 7 minutes for standard shopping.
Office Depot was the most expedient BOPIS retailer, with shoppers only needing 2 minutes. The fastest traditional shopping was at Target, where shoppers were in and out in 3.5 minutes.
On the other end of the spectrum is Home Depot and Macy’s. Each clocked in at 8.5 minutes for a BOPIS purchase. At these retailers and at Nordstrom, traditional shoppers were actually out the door faster.
The slowest time in the entire survey was Sears, where it took more than 16 minutes for the traditional shoppers to check out.
But the in-store pickup aspect is only part of the process. When you factor in the wait time for BOPIS customers to receive confirmations that their order was ready, a more complicated picture arises.
The average wait time for a confirmation was just over an hour, reports StellaStervice, with Macy’s and Sears each taking at least 140 minutes to let BOPIS shoppers know they could do the PIS part of their transaction. In such cases, most people could easily have driven to the store and done their shopping faster.
But then there were stores like Best Buy and Lowe’s that only needed 10 minutes to confirm a purchase was ready to be picked up. That’s fast enough for customers to place an order, hop in their car and have it be ready when they arrive at the store. Others like Home Depot (25 mins.), Staples (28 mins.), and Toys ‘R Us (30 mins.) might be okay for those with longer drive-times to the store.
Of all the stores in the survey, only Home Depot allowed customers to schedule their pickup time.
Okay, so you have an idea how far ahead in advance you need to order, and how long it will take you to get through the store. But what about actually finding the in-store pickup counter?
Several retailers — Best Buy, Target, Lowe’s among them — had specific counters visible from the entrance for in-store pickup.
And while it might take longer than traditional shoppers for a Nordstrom BOPIS customer to get in and out, that’s probably because the department store lets customers do in-store pickup at any counter. That’s convenient — not having to search a massive, multi-floor store for customer service — but it also means you’ll have to wait for the item to be delivered to wherever you are.
Finally, things can get complicated when you’re finalizing that BOPIS purchase. Shoppers who placed their orders online ended up spending the majority of their time (3.1 minutes) at the store at the cashier. However, it only took about 1 minute for standard shoppers to pay.
What isn’t in doubt about BOPIS is that it offers the one thing that traditional shopping doesn’t — some assurance that the item you ordered will be there when you get to the store. Granted, we’ve heard numerous stories of retailers botching in-store pickups and customers finding out too late than an item is out of stock, but in general the process works as planned.

United, Walmart profit from gift card exchanges

Food retailers are profiting from gift card exchange programs whereby shoppers can trade in unwanted department store and restaurant gift cards for credit equaling a percentage of their value at places like United Supermarkets and Walmart.
After a successful pilot of its Trade In, Cash Out program in Lubbock, Texas, the United Family implemented the gift card exchange program across its United Supermarkets, Market Street and Amigos banners in December.
Trade In, Cash Out allows shoppers to trade in eligible gift cards for cash equaling up to 80% of the gift card’s value. Shoppers also have the option of receiving a credit equal to an even higher percentage if they trade in their gift card for store credit at United, explained Kris Burdis, center store business manager for The United Family.
“What differentiates us is that you can walk into one of our stores with a gift card and you’ll walk out with cash,” he said.
The program is facilitated in partnership with Card Zone, which pays United a commission for the cashed in gift cards. It then resells them at a discount.
“I’ve been impressed with the program’s popularity, especially during the few days after Christmas,” said Burdis, who could not provide specifics.
Walmart launched a similar test in partnership with Cardcash.com, on Christmas Day. As part of the program, Walmart will transfer up to 97% of the value on gift cards from over 200 retailers and restaurants, to a Walmart e-gift card, at walmart.cardcash.com.
Participants do not need to mail in their gift cards. Rather, the transaction is completed online and the Walmart credit is emailed to recipients within about one to two hours.



“We’ve found in the past that people really like versatile gift cards like Walmart’s,” said Jeremy Levi, director of marketing for Cardcash.com, which facilitates a similar service for Amazon.
Like Card Zone, Card Cash resells the gift cards that are cashed in, at a discount which is funded by the loss that sellers take when cashing in their cards.
“We don’t pay full value for a gift card so let’s say a $50 gift card would net about 80% of the value. So you might get $40 back in trade in value. We’d then sell it to the next person for $45 and they’re happy to get the 10% savings,” Levi explained.

How Nordstrom Became The Most Successful Retailer

NordstromReutersNordstrom is one of the best investments in retail.
Nordstrom is outperforming every other retail company.  
The company's shares have gained 120% in five years. The company is well-positioned to continue that success in the future, according to Deutsche Bank. 
The department store has focused on a few aspects of the business to stand out. 
Here's how Nordstrom is beating retailers from Macy's to T.J. Maxx. 

1. Great customer service. 

"Throughout their history, they have consistently provided some of the best service in the industry," said Robin Lewis, CEO of The Robin Report and co-author with Michael Dart, of The New Rules of Retail – Competing in the World’s Toughest Marketplace
Nordstrom is choosy about hiring "nice, capable people," according to Forbes
Customers love the return policy: Nordstrom will take back any merchandise people bring back, no questions asked. 
"The top-notch customer service is a big part of Nordstrom's long-term success," Lewis said. 
nordstrom share priceYahoo! Finance.The company's share price over the past five years

2. The outlet business. 

Nordstrom Rack is a huge cash machine for the company, Edward Hertzman, founder and Publisher of retail publication Sourcing Journal, told Business Insider. 
There is only a 10-20% overlap between Nordstrom Rack customers and the high-end department store, meaning that plenty of people are still paying full-price too.
"The outlets have given them exposure to a completely different customer who is all about value," Hertzman said. 
Nordstrom has opened more than 70 Rack locations since 2010, and has plans to build dozens more. 
Nordstrom RackAssociated PressA shopper checks a shoe as she walks down an aisle in a Nordstrom rack in Chicago

3. Reaching young customers.

Nordstrom has solved one of the biggest problems facing retailers: reaching millennial customers, Lewis said. 
"The outlet business gives Nordstrom exposure to young customers who are seeking a deal and otherwise wouldn't be shopping there," he said. "The company believes that the younger customer will migrate into the full-line stores as they grow older."
While Lewis believes there is a risk of the outlet business diluting the brand's image, he says that brands like Nordstrom that offer a variety of brands are less at-risk than name brands like Michael Kors. 
"They have a breadth of brands, so having outlets might not tarnish the nameplate," he said. 
nordstrom pinterestNordstromNordstrom's omnichannel strategy helps it resonate with young customers.

4. Emphasizing omnichannel. 

Nordstrom is determined to be the world's top omnichannel retailer.
"This company is at the forefront of e-commerce and omnichannel retail," Lewis said. 
Nordstrom recently made it possible to instantly buy the items featured on Instagram. 
Workers also merchandise stores using input from its Pinterest page. Items that are popular on the social media site are featured more prominently on the sales floor. 
Nordstrom has also aggressively invested in e-commerce, investing in men's brands Bonobos and Trunk Club and its own flash-sale site, Hautelook.
"Nordstrom has spent more than a billion dollars investing in this aspect of the business, and it's paying off," Hertzman said.  

Retailers Save Discounts for Bargain Hunters

With the holiday frenzy over, shoppers like these at Nordstrom Rack in Schaumburg, Ill., looked for after-Christmas bargains Friday. But discounts don’t move the needle for all shoppers.ENLARGE
With the holiday frenzy over, shoppers like these at Nordstrom Rack in Schaumburg, Ill., looked for after-Christmas bargains Friday. But discounts don’t move the needle for all shoppers. NAM Y. HUH/ASSOCIATED PRESS
There’s a growing gap in retailing between those who get discounts and those who don’t. Call it the discount divide.
After years of sending out email blasts offering all shoppers steep discounts, retailers such as Stage Stores Inc., which runs 880 department stores, including the Bealls and Goody’s chains, are starting to pare back the promotions by showing them only to customers who respond to price reductions.
At the other end of the spectrum, Stage Stores has shoppers who are more interested in nabbing the newest styles in shoes and handbags than in sniffing out bargains. Stage Stores rarely advertises clearance sales to them.
“Discounting is here to stay; you just have to be smart about it if you still want to make money,” said Steven Lawrence, the company’s chief merchandising officer and a former merchandising executive at J.C. Penney Co.
After years of collecting data, retailers have gotten savvier about how to use it.
ENLARGE
They are trying to maximize full-price sales to fatten profit margins, while using discounts to clear aging inventory and persuade reluctant shoppers to part with their cash.
A fifth of online shoppers are considered true “discount junkies,” people who make purchases only when plied with discounts, according to new data from AgilOne Inc., which works with 150 retailers to analyze customers’ purchases and predict their behavior. About 15% of shoppers generally pay full price for items and don’t bother searching for sales.
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“Smart retailers understand discounting only moves the needle for a portion of their customers,” said Omer Artun, chief executive of AgilOne and a former marketing executive at Best Buy Co.
“You don’t want to offer discounts to full-price shoppers, because over time your profit margins will erode,” he said.
Shoe brand Donald J Pliner, which is sold online, in department stores and through an eponymous six-store chain, divides its customers into three types based on their previous shopping behavior: Discount shoppers who buy clearance items and last season’s styles once they are priced at more than 25% off; full-price shoppers who rarely buy clearance items; and customers who fall somewhere in between.
The divisions dictate to whom the brand touts clearance sales and which customers receive catalogs showcasing new full-price products.
Since the recession, store windows have been full of big 40%-off signs, and email inboxes have been crammed with discount offers.
Two years ago, J.C. Penney was crippled after former CEO Ron Johnson tried to eliminate discounts entirely.
The retailer reinstated the deals immediately after Mr. Johnson left.
Department stores including Nordstrom Inc. and Hudson Bay Co. ’s Saks Fifth Avenue have built separate outlet centers filled with the previous season’s wares or cheaper versions of their clothing made for those who are more concerned about prices.
The strategy benefits shoppers like 64-year-old Joseph Porter, who does most of his buying online and says he pulls out his wallet only if he finds a good discount. “You would have to be crazy to pay full price these days,” said Mr. Porter, a retired writer in St. Louis. “There’s always some discount available, but you do have to do a check around the Web to make sure they’re not trying to pull one over on you.”
Offering selective discounts isn’t without challenges. Stores risk alerting consumers that they are using shoppers’ personal information, and that they know everything from what time of day customers open email to what is the best shoe size to whether the word “sale” causes a customer to click on a link.
“Surgical discounts that give an advantage to certain people would take away our credibility,” said Farooq Kathwari, CEO of furniture retailer Ethan Allen Interiors Inc., which offers a single price on each product at its 300 U.S. design centers.
Xavier Barrera, who works in commercial banking in San Jose, Calif., said he and his partner, a doctor in the San Francisco Bay Area, couldn’t be more different when it comes to discount shopping.
Mr. Barrera checks flash- sale sites, scours the Web for deals and almost always buys items on sale, while his partner tends to pay full price for purchases.
On a recent trip to Nordstrom, Mr. Barrera said, his partner bought five shirts at around $110 each, even though the salesperson said that if he waited a week for the store’s annual sale, he could buy the same clothes at reduced prices.
“I remember rolling my eyes, because I knew he wouldn’t want to wait for the discount like I would,” Mr. Barrera said. ”He doesn’t have the luxury of time.”
Chris Orton, chief marketing officer of sports website Fanatics.com and former president of Orbitz.com, said retailers will continue to parlay the data they have to get the most out of shoppers.
“At this point next year, there won’t be two identical emails going out to customers,” Mr. Orton said.

The Top-Secret Food That Will Change the Way You Eat

More protein than beef. More omegas than salmon. Tons of calcium, antioxidants, and vitamin B. In their secret R&D lab, the scientists at Beyond Meat concocted a plant-protein-based performance burger that delivers the juicy flavor and texture of the real thing with none of the dietary and environmental downsides.