If you’re selling media space and services to retailers, the most recent reports might leave you feeling a bit spooked. Companies continue to close stores and the industry is shifting.
Nobody can blame retailers for asking if it’s over yet. I’m talking about the huge wave of store closings that have swept the U.S. in the past few years.
Retailers believe their in-store sales will shrink 14% in the next 12 to 18 months. This kind of statistic should set off alarms for your clients.
Bricks and mortar stores have plenty of completion from online competitors and other enterprises in the local market. One way to get an edge on the competition is to court potential customers who are in the immediate area. xAd, a mobile-location ad platform, has just released its assessment of geo-targeting based on information it has been compiling from its clients and sees a bright future for this ad format.
The sound of the future is getting louder for retailers. For many, that sound is the click of a computer button or the swipe of a screen on a mobile device. Bricks and mortar retailers, especially grocers, would like to hear the sounds of more shoppers in their stores. To achieve that goal, Nielsen analysts say they must innovate.
As the economy improves at a gradual but steady pace, retailers can expect moderate gains this holiday season. According to new data from Deloitte, holiday sales are expected to climb to between $963 and $967 billion, representing a 4 to 4.5% increase in November through January holiday sales (excluding motor vehicles and gasoline) over last season. Additionally, Deloitte forecasts a 12.5 to 13% increase in non-store sales.
Businesses continue to make the shift to digital advertising. In some industries, this transition is speeding ahead. Retailers, in general, have embraced digital advertising, and account for $1 out of every $5 spent in the format, according to eMarketer.
Retailers are often on the leading edge with their B2C marketing campaigns. In this highly competitive sector, it’s crucial to connect with consumers and build loyalty. It should come as no surprise that these marketers are ambitiously pursuing their digital strategies in order to follow the consumer shift to digital media. The new State Of Retailing Online 2013: Marketing & Merchandising from Shop.org and Forrester Research, Inc. shows just how seriously retailers are taking this move, especially as they focus on mobile search and email.
As the digital shopping experience improves, manufacturers are seeing an opportunity to increase their sales directly to consumers. Some manufacturers are opening retail stores while others are selling online. This marks a big shift from the days when manufacturers used to help retailers sell their products. Retailers are struggling to hold onto market share in this new ecosystem and are looking for ways to improve their marketing and customer loyalty.
Retailers are feeling better about the future. For many, the future will include a bigger digital presence. A new BDO USA survey indicates that retailers have reviewed what worked and didn’t work in 2012 with respect to increasing sales. Most are prepared to make some changes to improve their results in 2013.