Tag: Amazon

Can Teslas and Pizza Get People Shopping Again?

Posted on | by Jeff Ketner

A recent Washington Post headline read, “Unemployment is down. Gas prices are low. Why isn’t America shopping?”

There are a number of possible answers. Both in the article and at the inaugural ShopTalk conference, there were numerous discussions about the U.S. being “over-retailed” – too many stores and e-commerce sites for too few shoppers. Many like to point to widespread uncertainty about the global economy and the twists and turns of the presidential election. Moreover, shoppers are spending their money differently: they are addicted to promotions and often opt to spend their hard-earned dollars on experiences like vacations or big projects like home improvement. But these don’t explain the whole truth.

In reality, the shopping experience can all too often be downright awful. On a recent weekend I spent five minutes at a big-box office products store waiting for someone, anyone to show up at the empty cash registers at the front of the store. I didn’t really feel like chasing anyone down, and I’d only gotten half of what I came for, as the pens I wanted were out-of-stock. After a few minutes of waiting I started comparing prices on Amazon. No surprises here: I found everything I wanted at a lower price, so I left my purchases at the register, walked out the door, and placed the order before I left the parking lot. It’ll likely be the last time I visit that retailer for basic office supplies.

My wife didn’t fare much better at a women’s apparel store that weekend. She stood in line at the register for what seemed an interminable amount of time waiting to pick up an order, which turned out to be a different size from what she ordered. When she headed back to the counter to order it in the right size, the sales associate promptly announced she was headed to lunch, leaving my wife stranded at the cash wrap. She placed her order online later that afternoon; however, her 40% off coupon code didn’t apply online, even though the coupon said nothing about online exclusions. It took a call to the e-commerce help desk to straighten it out – although the help desk operator couldn’t answer my wife’s questions right away, as the retailer’s systems hadn’t updated yet.

These problems fall into two broad categories: too few sales associates for many retailers (and a failure to properly train the ones they have), as well as outdated systems and disconnected technology. Is it any wonder that Amazon accounts for 1 in 3 shopping transactions, according to Internet Retailer?

Fortunately, the best retailers are making the right moves to re-energize retail and attract shoppers. Nordstrom, which consistently has some of the best sales associates in retail, is opening a small Tesla gallery at a high-end mall location. Target is spending $1 billion this year remodeling its stores and has launched 25 “stores of the future” in Los Angeles. Urban Outfitters, which recently set a Q1 sales record, firmly believes that “bricks and clicks are synergistic.” Urban bought the popular Vetri Family pizza chain last year and recently opened two flagship Anthropologie stores with “a petite shop, expanded jewelry and accessories, an intimates boutique, an 800 square foot beauty shop, a full-service shoe salon as well as over 6,000 square feet of home products,” according to RIS News.

These retailers, and many others, are clearly doing everything they can to get America shopping again. Retailers shouldn’t forget the fundamentals, though: Train your associates. And get those legacy systems to talk to one another, in real-time. Focus on these things – and continue to make stores fun, creative and innovative – and consumers will start shopping again. After all, you can’t buy a Tesla, get a makeover or get a slice of pizza while shopping at Amazon – at least not yet.

It’s an Amazon world, we’re just living in it

Posted on | by Ketner Group

If you know anything about the retail industry you’ve probably heard a thing or two (or a million) about Amazon. Amazon, an ecommerce giant, provides thousands, if not millions of items to consumers from all over the world delivered to your door step within days. Retailers, physical and digital, find themselves competing with Amazon constantly. It’s hard to beat impeccably cheap prices, two-day free shipping and same-day delivery in some cities for Prime members. But now there’s something else to compete with. Amazon announced that it would be launching Prime Day, an event to celebrate their 20th anniversary. Amazon boasts that it will have deals that are much bigger than those on black Friday. Of course the purpose of this is to drive sales, but how can other retailers beat such a heavy promise?

Walmart, for one, is taking a big stab at competing with Amazon. Walmart’s CEO Fernando Medeira posted a blog titled “Why Every Day is Low Price Day at Walmart,” in which he announced they would reduce the minimum free shipping for online purchases from $50 to $35 and reduce prices on thousands of online items. “We’ve heard some retailers are charging $100 to get access to a sale,” Medeira stated in the post. “But the idea of asking consumers to pay extra in order to save money just doesn’t add up for us.” A point well made by Walmart, which was clearly taking a punch at Amazon’s Prime Day event. A few days later Walmart increased the competition a bit more with their new promotion called “Dare to Compare,” in which they guarantee that they will offer lower prices than Amazon and invite consumers to compare the prices themselves.

Though two of the biggest retailers in the world are going head to head in competing for market share based on low prices, they are not the only ones. Food Lion has also jumped on the price lowering bandwagon. They announced they would be lowering prices on thousands of items that are most important to consumers based on extensive research and frequently purchased items. To ensure that consumers are aware of the price cuts, Food Lion is using three signed deal offers including, “WOW: Lower prices on thousands of items that matter most to customers, offered for longer periods of time,” which also alludes to Amazon’s brief one-day event.

As the highly anticipated Prime Day is in full swing, many consumers are anything but impressed. Many consumers went to social media to criticize the event for its unexciting items and for the fact that there are waitlists for those items. Though Prime Day isn’t what people expected, the event still sparked a lot of competition from other retailers and interest from the media and consumers alike. The fact that other retailers created promotions in response to Prime Day deals shows just how significant Amazon’s influence is in the retail industry.

 

The Most Buzzworthy PR Successes June 2015

Posted on | by Ketner Group

Public relations is such a diverse and expansive field and there is a constant stream of notable PR successes to praise. With the impactful changes that have been made across all kinds of industries this past month, there are most definitely a few PR successes to celebrate.

A big win for Apple and Taylor Swift

There is no doubt Taylor Swift is aware of her influence and is no stranger to speaking her mind. A few weeks ago, Swift released a letter to her fans, peers in the music industry and to Apple voicing her opinion on their new free streaming trial. Swift explained that Apple hadn’t planned on paying artists during this free three-month trial. Swift explained that fortunately this was not a big deal for her, but it was a huge deal for upcoming and new artists who have recently released music and depend on income and recognition to continue pursuing their music. After Swift’s argument went viral, Apple changed their terms to pay the artists during the trial. Some speculate that it was Apple’s plan all along to have someone high profile to speak out against these terms to draw attention to their new service. True or not, both artists and fans are praising Swift; plus, everyone now knows about Apple’s free trial. Read more here.

Etsy, Amazon, Walmart and other retailers remove the Confederate flag

In light of recent events fueled by racism, controversy around the prevalence and meaning of the Confederate flag has heightened. The church shooting in Charleston that left nine dead was strongly associated with the Confederate flag. Many people were disturbed by the fact that the Confederate flag, which has historical significance involving racism and violence, still flies over the South Carolina State Capitol. Despite differing opinions, the flag is causing uproar. In fact, the South Carolina legislature is deciding today whether or not to keep the flag at the Capitol. The flag’s removal has passed through the Senate, and is now in the House. Many retailers have taken an initiative to remove items with the Confederate flag from their stores. Regardless of your opinion on the Confederate flag, it is a tactful move by many retailers, as it prevents the potential for future controversy. Read more here.

Obama’s approval rating is above 50%

Also, if you happen to have internet, watch TV, or interact with other humans you are probably aware of a few successes in the last couple of weeks for the Obama Administration. One being that The Supreme Court upheld the Affordable Healthcare Act. The second: The Supreme Court ruling that the constitution guarantees gay marriage, making it the law of the land. Whether or not you support these rulings, they have led to a boost to 50% approval rating of the Obama Administration for the first time since the very beginning of his presidency. Read more here.

Brands show their support for marriage equality

The Supreme Court ruled in favor of marriage equality, and many brands have used this historic event as an opportunity to show their support of the decision. A number of brands used Twitter and Instagram, but one company in particular went above and beyond to celebrate. Ben & Jerry’s, who has publicly supported gay rights for quite some time, renamed their chocolate chip cookie dough flavor to “I Dough, I Dough.” The flavor is available all summer at participating stores nationwide and online through the Human Rights Campaign. Regardless of the different views on marriage equality, brands have used this ruling as an opportunity to connect with current and potential consumers in a heart-felt way. Read more here.

It’s safe to say that June was a memorable month that kept the PR world busy. Stay tuned to find out what July has in store for PR professionals.

This Week’s Retail Round Up

Posted on | by Ketner Group

With the retail industry changing on a day-to-day basis, there’s always something that’s trending in the news. From the havoc that Lilly Pulitzer created with their launch at Target, to the possibility of having robot technology take over the retail world, this week was filled with some fascinating trends.

Lilly Pulitzer for Target causes shipping frenzy via CNN

Lilly Pulitzer, known for bold colors and prints, announced earlier this year that it would partner with Target to release a new, more affordable line of bags, shoes, dresses and much more. This news created some major hype amongst people all over the country, and according to CNN, lines started forming early as 5 a.m. on Sunday, April 19 for the highly anticipated collection.

Within hours, it was sold out online and in stores across the country. And people were irate. Target announced that the inventory would not be restocked because the collection was only available for a limited time. Once people realized that #LillyforTarget was essentially a thing of the past, people were furious. And today, Target is facing the backlash, but are “learning from these experiences and sharing with our online and store teams,” according to a statement.

Sam’s Club makes being a member more valuable via Retailing Today

Sam’s Club announced on April 22 that they would implement five new services, including those that are focused on financial services, theft protection and the possibility of saving members as much as $2,300 annually. These new services will allow Sam’s Club to differentiate themselves from Costco and other competitors, as well as simplify how their consumers work, live and conduct their businesses. Sam’s Club, who has been dedicated to low prices on bulk goods and quality products for many years, embarked on this change in response to their CEO’s push in increasing the value of membership and multiplying services involved with business, home and life. With these new services, Sam’s hopes to attract new members, maintain their existing ones and promote their $100 Plus level membership.

Services offered from providers with recognizable brands include:

  • Identity theft protection from industry leader Lifelock at a 25% discount on annual rate.
  • Accounting services and tax preparation from 1-800Accountant, a network of accounting experts that provide bookkeeping and tax filing through a simple platform, starting at $29 a month.
  • A Sam’s Club Business Lending Center that gives access to as much as $350,000 of capital by connecting business members to lenders and credit options through Lending Club, Smart Biz and Sam’s Club Business MasterCard.
  • Enhanced payment processing solutions provided by First Data. This will bring in-club business consultants and centralized payments and point of sale technology to business members to help simplify operations.
  • Online marketing services provided by Web.com with a 36% discount. Web.com has created member-exclusive digital marketing bundles, including do-it-yourself (DIY) and do-it-for-me (DIFM) plans for digital marketing services.

Will retailers I-up the latest in robot technology?  Via Retail Gazette

Tech innovator, Toshiba, has introduced a humanoid robot to the retail world in Japan. They have introduced this “lifelike” communication technology to attract people into stores, where androids have been greeting and assisting consumers around the store and aiding human employees. Currently, the robot is being used as an attraction or as a form of entertainment, but Toshiba’s Business Development Division Group Manager, Hitoshi Tokuda, thinks that this robot can revolutionize the shopping experience. Toshiba is hoping to develop a robot that can eventually do what a human does in regards to customer service.

The robot is powered by 43 motors and blinks and talks. Apparently, the robot named Pepper can understand about 80% of conversations and is set to launch across 1,000 stores in Japan. This new development has set the bar high for customer experience for retailers wanting to expand in Japan. These androids could be a solid investment that has the power to change communication and employ more staff, but businesses could also lose their brand’s personality without face-to-face human interaction. These new robots are setting an intriguing stage for the future of retail.

 

Retailers’ Aging POS Platforms in Need of a Makeover via Retail Info Systems News

As the times change, so do the needs of consumers and POS platforms. Older platforms, traditionally used for scanning merchandise and completing basic transactions, are reducing consumer engagement. In fact, most POS platforms are about 6.9 years old; the need for upgraded technology is now becoming essential for empowered consumers that are expecting much more than a register. Consumers are now demanding POS as the “omnichannel point-of-service” where retailers engage consumers and build loyalty. The retail industry needs to address these outdated systems or face potential compliance penalties, security risks and even a hindered ability to reach growing business needs. According to EKN Research, the need for more up-to-date systems is attributed to four key factors including the EuroPay, MasterCard, VISA (EMV)-liability shift, the growing need for mobility, omnichannel POS integration and the introduction of new payment methods.

 

Amazon Takes aim at the B2B market via Retailing Today

Amazon is now thinking about delving into the B2B world with retailers like Staples to launch Amazon Business marketplace that is stocked with millions of business products. Amazon says that their business customers will benefit from free two-day shipping on eligible items, multi-user business accounts, approval workflow, payment solutions, tax exemptions, customer support and so much more. Amazon Business will give businesses the convenience of shopping online in an expanded marketplace with the selection, convenience and variety of Amazon.

Some of the features of Amazon Business we think are super awesome are:

  • Business Accounts: Create a single or multi-user business account, invite additional users to join the account and define groups of users to easily share payment methods and shipping addresses.
  • Free Two-Day Shipping: Fast, free shipping on orders of $49 or more on tens of millions of eligible items, plus access to even faster shipping options.
  • Multi-Seller Marketplace: View multiple offers on a single product page for easy price comparisons, as well as shop sellers that consistently meet the performance and service requirements that businesses expect.
  • Business-Only Pricing: Business-only prices on select items and quantity discounts from select manufacturers and sellers.
  • Business-Only Selection: Business-only items combined with Amazon’s vast selection provides access to hundreds of millions of products, including hard-to-find items like traffic signs, industrial deep fryers, antibodies, 55-gallon steel drums, dent pullers and much more.
  • Purchasing Approval: Create approval workflows to enable better spending controls.
  • Amazon Tax Exemption Program: Make tax-exempt purchases and manage tax exemption permissions across an organization.
  • Amazon Corporate Credit Line: Place orders and finance purchases using a Pay-in-Full Credit Line or a Revolving Credit Line.
  • Comprehensive Product Information: Rich product pages and studio-quality photography, as well as dimensions, CAD drawings and manufacturer how-to videos.

 

 

What other retail stories in the news caught your eye this week? We’d love to hear what you think about the Target/Lily Pulitzer ordeal, and if you’ll be using Amazon Business for your company!