“The Technologies Reinventing Physical Retail” by BOF Team, McKinsey & Co. via The Business of Fashion

“The Technologies Reinventing Physical Retail” by BOF Team, McKinsey & Co. via The Business of Fashion

Engagement with in-store technology can lead customers to spend up to four times longer shopping than customers who simply browse. (Getty Images) In-store mobile apps and micro-fulfilment tech can address consumer pain points and enable companies to incorporate their physical retail networks into omnichannel shopping journeys. KEY INSIGHTS In store, customers who engage with technology spend up to four times longer shopping than those who do not.Mobile apps provide a frictionless shopping journey, whether a customer is seeking convenience or an engaging, social experience.Micro-fulfilment technologies enable brands to process orders efficiently from stores, reducing associated costs by up to 90 percent, and can lead to higher conversion and customer satisfaction rates. This article first appeared in The State of Fashion: Technology, an in-depth report co-published by BoF and McKinsey & Company. The rules of physical retail are changing. Pressure on the economics of operating stores has been mounting, particularly since more and more consumers began embracing the convenience — and safety — of e-commerce during the Covid-19 pandemic. But physical retail is far from dead. A 2020 survey of European consumers showed that 60 percent of respondents wanted to see or touch products in-person before buying, while 50 percent shopped in stores so they can take items home immediately. As pandemic restrictions subside, the percentage of customers shopping online is expected to fall 3 percentage points from 2021 levels across key markets, including Europe, the US and China. This presents an opportunity for players to reshape the role of stores in their overall retail mix. Engagement with in-store technology can lead customers to spend up to four times longer shopping than...
“Airports and Mountain Resorts” by Jeff Harbough via JH&A Market Watch Blog

“Airports and Mountain Resorts” by Jeff Harbough via JH&A Market Watch Blog

Seattle’s main airport is surrounded by communities and has grown like a weed right along with the Seattle metropolitan area.  It has no practical way to expand.  Through recent technology and some clever evolution of facilities the airport authority is doing everything it can to shoehorn more passengers and flights into the same space.  But there’s a limit.  Airplanes, which are big and fast moving, need a certain minimum vertical and horizontal separation no matter how sophisticated the technology of the plane and control systems are.  They also need to park and move around while they are on the ground. The same is true of skiers and snowboarders at mountain resorts in case you hadn’t figured out where I was going with this. It’s unlikely many new winter resorts are going to open.  Climate change, at least for the immediate future, will mean an overall decline in snow days and season length (yes, I know- good for some mountains, bad for others).  Here’s an interesting article on how conditions are evolving in Norway. Like with airports, technology in the form of snow making, faster lifts, etc. will try to ameliorate this where possible.  And mountain resorts will increasingly try to build their year around business. It might be ten years ago I first suggested the National Ski Areas Association change its name to the National Mountain Resort Association.  Still waiting, though the case is even stronger now.  I’m wondering if resorts, or I suppose resort groups as things have evolved, will offer not just multi resort but multi season passes.  Consider the permutations of passes you could sell- not just days...
“Is an urban retail recovery underway?” by Tom Ryan via Retail Wire

“Is an urban retail recovery underway?” by Tom Ryan via Retail Wire

“It’s slow progress, but retailers’ interest in urban corridors is returning and deal volume is inching up, while shoppers, workers, travelers and diners return to city life,” according to a new report from real estate services firm JLL. Are they right? The report finds more workers heading into the office, although well below pre-pandemic rates. Since March, the average occupancy rate for security firm Kastle Systems’ 10-city average has hovered at around 43 percent of their pre-pandemic occupancy level, up from 17.5 percent at the start of the year. Recent analysis by The Wall Street Journal found cities with longer commutes have taken the biggest economic hit, while urban areas where people live closer to work have a higher return-to-office rate. Tourism has revived with Times Square and San Francisco’s Union Square seeing the biggest gains in foot traffic from last year. According to JLL analysis of Placer.ai data, foot traffic from domestic tourists is up 14 percent in New York City from 2019. San Francisco is still below 2019 levels, but foot traffic to Union Square has doubled over the past year and retail leasing interest is starting to return. Foot traffic to Chicago’s prime urban corridors is within 10 percent of 2019 levels. Miami’s hotel lodging rates are well above 2019 levels despite restrictions on international travel. The U.S. still requires pre-departure COVID-19 testing for international passengers. Meanwhile, dining is poised for a “full recovery” to support city visits as concerns ease about eating out, according to JLL. According to a Morning Consult survey, Americans’ comfort with dining out sits at 75 percent as of the end of May, 14 points higher than it was at the start of...
“3 E-Commerce and Social Media Trends to Watch Through the Rest of 2022” by Jessica Hawthorne-Castro via Total Retail

“3 E-Commerce and Social Media Trends to Watch Through the Rest of 2022” by Jessica Hawthorne-Castro via Total Retail

E-commerce sales have been on the upswing as a share of total sales since before 2000, and in the last decade, social platforms have played an increasing role. Then 2020 happened, driving an unprecedented spike in online sales. This year so far, we’re seeing social media mature as a force that drives e-commerce, in addition to emerging technologies like the metaverse and 5G. Here’s a look at how e-commerce and social media will intersect across three major platforms through the rest of 2022. 1. Instagram Retains its Leadership Position in the Social Commerce Sphere This image-forward social platform is already a major player in e-commerce, with 72 percent of users reporting that they’ve made a purchase decision after seeing a post. Savvy brands have capitalized on Instagram’s visual-first design, placing content on the platform to keep consumers current on what’s new in stores or available online. With a successful suite of e-commerce features and the No. 1 rank among social platforms consumers use to follow brands, Instagram is still in a strong position in terms of e-commerce and brand communication, and that’s unlikely to change in the months ahead. Keep an eye on new features on Instagram like variable focus and augmented reality (AR) tools. Related story: Authenticity, Social Commerce Spur D-to-C Brand ZOX’s Growth 2. Snapchat Plays Catchup It may seem counterintuitive because Snapchat has a cutting-edge AR system, but the popular instant messaging app is losing ground in terms of active users relative to its competitors, and that makes it less of a player in e-commerce today. Instagram has well over twice as many active users, and TikTok has pulled far ahead,...
“Did the Pandemic Change Retailing Dramatically?” by Jan Rogers Kniffen via The Robin Report

“Did the Pandemic Change Retailing Dramatically?” by Jan Rogers Kniffen via The Robin Report

Any professional observer of retail trends and every shopper in the U.S. would tell you that retailing, and retailers changed dramatically during the pandemic. But many of those changes were already in the works before the pandemic even started. One of the interesting things that happened during the pandemic is that Amazon announced the closure of almost all their test stores that were in the works. On the surface, one might think that online retailing charged ahead so rapidly during the pandemic that Amazon decided to withdraw from stores altogether, concluding that the world had passed brick-and-mortar stores by. Well, there is no doubt that online selling charged ahead during the pandemic. It went from about 9 percent of retail sales to over 18 percent in that short (very long living through it) pandemic period. But Amazon’s move to close stores and try “something new,” which right now seems to be a 30,000 square-foot department store, seems to be driven by the poor consumer reception to the various test stores tried so far, not a belief that stores are not still important. 1/ The Physical Store Actually Became More Important My conclusion is that despite the explosion of online selling during the pandemic, stores became even more important as retailers realized that physical stores were going to be great support for online retailing going forward. They saw the billboarding effect of the store was real, using the store as a distribution center was necessary and using the store as a customer service center for online sales was a requirement. Despite Amazon arguably (some experts would say unarguably) being the very best online retailer in...
“Social Commerce is Having More Than a Moment – Brands not embracing this trend, or at least testing the water, will be left behind” by Stevie Morris via Total Retail

“Social Commerce is Having More Than a Moment – Brands not embracing this trend, or at least testing the water, will be left behind” by Stevie Morris via Total Retail

Credit: HubSpot Social commerce, the latest darling of digital marketers, continues its meteoric rise with the latest predictions putting the industry at $1.2 trillion in purchases by 2025. With more than $958 billion spent in 2021, it’s clear that social commerce represents a very real, profitable tactic for brands. No wonder there’s hunger to invest. But at this pace, strategic marketers must ask themselves a few questions. Social Commerce: A Moment or a Permanent Shift? Three major drivers are affecting the moment we’re living in: Time spent: Today, there are 4.5 billion people using social media — that’s more than half the world’s population.Content: With so much to see, do and learn, average daily time spent on social media is now 2.5 hours.Payments: Driven mostly by millennials and Gen Z, 2 billion people now use mobile wallets. As these behaviors shift, so do expectations with more shoppers seeking: Convenience: Research shows that 82 perfect of shoppers like how quick and easy it is to shop on social media, while 71 percent say they prefer to buy immediately after viewing content rather than switching to a retail site.Inspiration: 60 percent of users say they’ve discovered a product via social feeds, and 55 percent were moved to buy.Validation: Heavily influenced by community, 70 percent of people who watched livestreams hosted by an influencer say they were “highly likely” to buy the products recommended. While traditional e-commerce is calculated, self-prompted, and often cumbersome, social commerce is spontaneous. It allows you to be inspired in the moment and to buy without leaving the experience you’re in. Related story: Authenticity, Social Commerce Spur D-to-C Brand ZOX’s Growth What Are Social Platforms Getting...