3 Retail Stories Worth Reading from the Last Week (or so)
Welcome to your weekly mélange of retail news! This is where we look at the previous week (ish) of retail news, events, and activities to hopefully enlighten your day with a story that may have fallen through the cracks.
The Mall is Not Dead
‘The good news for mall owners and retailers is that although consumers are shopping differently, they are still shopping. Retail sales were up 4.5% year over year in April and more than 90% of purchases are still made in physical stores.’
This report gives us a good sense of what does and does not work for specialty stores and department stores. It's a realistic assessment that reviews the US mall landscape, while providing tons of relevant data points and good infographics. The report points to five factors that are changing the landscape: (1) The US is overmalled and overstored, (2) eCom is a powerful competitive force, (3) Undifferentiated Product, (4) Consumers appreciate value and (5) Consumers value experiences.
3 Ways Retailers Can Profit from AI
via Chain Storage Age—
For retailers, meanwhile, AI could increase profits by almost 60%.... physical retailers could use AI technology to learn…Which products do they take off the shelves but then decide not to buy? This sort of data will tell retailers when, where and how to nudge customers toward purchases.
This brief article on AI suggests three ways in which retailers could leverage AI to their advantage – both online and in-store. By leveraging AI retailers can, (1) Understand the consumer (2) Guide them to what they want – and don’t know they want and (3) Provide customers with memorable experiences. Ultimately, retailers using AI advances have already experienced 'increased customer loyalty and higher profits.’
Two Faces of Fashion
via McKinsey & Company —
Fashion is a winner-takes-all industry…McKinsey research and our recent survey of industry executives, for example, suggest some segments of the market, such as affordable luxury and premium brands, should grow much faster than top-of-the-line luxury or discount products.
Mckinsey research finds that, ‘20 percent of fashion players created 100 percent of economic profit over the past decade, while the bottom 20 percent of companies went backward.’ The top 20 percent did this by reducing costs, investing properly and executing better than the competition. In order to survive, retailers must further invest in their digital, distribution and in-store experience efforts.
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