Amazon recently announced that it will begin offering free same-day shipping for prime members in 14 markets in the United States. With the onslaught of competitive actions from all channels, it’s no surprise that 21% of retailers report that online-only players are their biggest threat this year.* While it is clear that Amazon’s action will not affect every organization equally, it’s critical for each retailer to understand how their business will be impacted by such competitive actions and how they should profitably respond. Retail executives need to answer three questions, including: (more…)
APT announced today that the APT Index of in-store retail sales increased [+0.4%] nationwide in May 2015, compared to May of last year. APT Index retail sales were up [+1.0%] on Mother’s Day Weekend and down [-0.7%] on Memorial Day Weekend. Click here to read the full report.
In his recently published article in Supermarket News, APT VP Jeff Campbell discusses how grocers should manage the risks and rewards of store upgrades.
Campbell outlines three questions to which grocers must know the answer to achieve the best returns on these large projects:
- What is the incremental impact of the initiative?
- What is the economic contribution of each element of the initiative?
- How will returns vary in different locations and markets?
“As grocers try to transform their stores into local destination spots, they must be able to innovate quickly. However, facilitating any proposed change haphazardly can lead to significant erosion to a company’s bottom line and reputation. To minimize the likelihood of incurring unnecessary costs or tarnishing the brand, grocers should test each new strategy on a smaller scale first to determine its true incremental impact. Executives can then act confidently in response to these data-driven insights — re-allocating funds to ideas that work and cutting investments to those that don’t,” Campbell concludes.
Click here to read the full article.
APT announced today that the APT Index of in-store retail sales for April 2015 decreased [-1.0%] nationwide, compared to April of last year. The APT Index of in-store apparel sales was down [-3.6%], though APT reported online apparel sales up [+2.8%] in April, as digital channels become a larger portion of total sales. Click here to read the full report.
A recent Wall Street Journal article, “How Store Know What You Want When You Shop,” discusses how leading apparel retailers are using Test & Learn to analyze their data to inform key decisions about discounts, product placement and styles, and much more.
As author Christina Binkley writes, “APT is a specialist in cause-and-effect analytics, which is at the forefront of the revolution that so-called big data is bringing to industries like retail, which have been run more by gut feel than science…It may evaluate where products are displayed, a discount amount, or the colors popular in Atlanta versus Chicago. This is helping the apparel industry fine-tune its pitches to consumers.”
Read the full article here. (WSJ login required.)
With grocers now facing an onslaught of new competitors, growing share-of-wallet can be challenging. So how are leading grocers remaining competitive in this evolving landscape?
In a recent Progressive Grocer article, APT VP Jeff Campbell discusses the following five strategies that grocers are experimenting with to encourage customers to frequent their stores to spend their grocery budget:
- Targeted promotions
- Expanding gourmet and specialty assortments
- Adding pharmacies and gas stations to stores
- Offering bounce-back promotions
- Enhancing the in-store shopping experience
Campbell writes, “With so many opportunities to bolster customer loyalty and drive store traffic, it can be difficult to decide which of these strategies is right for your business. Some will work well, and some will be added expenses with no added benefit. To accurately evaluate each new strategy, grocers should rapidly and rigorously test them in market. This approach—known as Test & Learn—not only helps companies make better decisions today, but also affords them the ability to try bolder ideas that can lead to additional market share and profits in the future.”
Read the full article here.
An article titled “Beyond The Cone of Uncertainty: How to Develop a More Profitable Promotional Strategy,” by APT SVP Jonathan Marek, is featured in Digital Marketing Magazine. He writes, “while promotions have long been a central part of marketing strategy, the increasing availability of customer data and the proliferation of digital-enabled contact channels are revolutionizing marketers’ ability to efficiently send personalized offers and deliver them in innovative ways.” Click here to read the full article.
APT today announced that the APT Index of in-store retail sales for March 2015 increased [+1.8%] compared with March of last year, as Americans’ view of the economy reached an 8-year high. APT Index general merchandise sales increased [+1.8%], and APT Index apparel sales increased [+0.4%]. Click here to read the full report.
In a recently published article in Retail TouchPoints, APT SVP Jonathan Marek explains the importance of testing ideas on a smaller scale and focusing on their incremental impact to more accurately determine which innovative ideas work well, which need to be refined, and which should be abandoned.
Marek comments, “Retailers should be measuring change in sales, profit, customer satisfaction, inventory levels, and more, in the short-term, as well as changes in long-term metrics that gauge the customer relationship benefits that manifest as a result of the program. For each of these metrics, retailers must be laser-focused on uncovering the incremental impact, or what would have happened in lieu of launching the initiative, while accounting for external factors, such as socioeconomic conditions and competitor actions, that can skew program assessments.”
Read the full article here.
APT today announced that the APT Index of in-store retail sales for February 2015 decreased [-0.9%] compared with February of last year. The decrease was driven by a decrease in the number of transactions [-1.8%], as poor weather deterred shoppers. The APT Index of General Merchandise sales decreased [-2.1%] and the APT Index of Apparel sales was down [-0.6%]. Click here to read the full report.