Loss Prevention Research Council Weekly Series - Episode 43 - Top 5 Retailer Priorities and Technology Initiatives
With Dr. Read Hayes, Tony D'Onofrio, and Tom Meehan
From SailThru - Four curbside customers to know in 2021 USA survey of 5,000 consumers. 31% had used BOPIS or curbside pickup this year. The new shopper who's news to your brand. Welcome emails have an open rate of 50%. The BOPIS beginner, 39% purchased from new brands during quarantine and 88% plan to stick with them.
The pickup pro, 83% of consumers are happy to share their data with brands for personalized experiences. The loyal shopper, the loyal customer's lifetime value is 30% higher than average. Consumers are clicking and collecting 78% more than they were pre-pandemic. Brands doing it the best include Target, Home Depot, Best Buy, Kohl's, Dick's Sporting Goods, Walmart, Ulta Beauty, and others. Critical new way to shop that will not go away and will increase in importance. For some of this audience, we need to think more on how to protect it.
From JLL, playing better in retail in 2021. In 2019, the retail and restaurants brands that provided the most interactive and engaging experiences led the market. In 2020, it was those that provided safety and ease of purchase. In 2021, convenience will remain as the key to better performance.
For malls, consumers are looking for centralized pickup areas. 70% of pickup shippers said they would prefer one pick up area in a recent survey. Currently, apparel and accessory stores account for 57% of total mall space. Percent of major bankruptcies in 2020 by sector: apparel 25%, home furnishings 14%, restaurants 11%, department stores 11%, and other 39%. Alternative usage of the malls emerging: office space, industrial, residential, education, and medical. Employees are seeking shorter commutes and mixed use be benefits. Malls could serve the demand for 15-minute cities, in the near future, with retail centers linked to business hubs and affordable apartments, all within a ready-made mixed-use district.
JLL predicts that by end of 2021 80% of office workers will have returned to the office following the release of a vaccine. We are not ready to declare a victory for urban retail. However positive signs for the market which have been so difficult to find in 2020, are now beginning to emerge in 2021. The mall will be back, but not necessarily as we see it today. Look to Asia especially to China to see the mall of the future.
From RIS News, one of my favorite annual studies the 2021 store experience study. Once final numbers are calculated survey respondents expect a 2.8% sales increase in 2020. For 2021, projections are for 4.8% in instore sales, 9.7% for desktop ecommerce, and 12.2% for mobile commerce. Overall retail growth projected at 4.7% for 2021. Store count growth expected at 4%. 1.8% of stores will be re-modeled. Tier 1 retailers will spend 5% more in IT for the enterprise and 4% for stores.
Total revenue share by customer journey: store purchases 72%, buy online deliver from DC 11%, store delivery 5%, ship from store 5%, BOPIS/click and collect 4%, and other 3%. Market leaders which in this study were defined as any retailer who claimed a 10% sales increase or more in 2019. 44% higher store count growth, 39% higher remodel growth, 69% higher enterprise IT spend growth, 23% higher store IT spend growth, 20% higher BOPIS IT spend growth, and 18% higher local delivery IT spending growth.
Top 5 priorities for retailers in 2021: Personalizing the customer experience, supporting contactless payments, upgrading CRM/loyalty programs, empowering store associates to improve customer service, and optimizing digital journey for store fulfillment. New technology initiative top 5 for 2021: SD-WAN, RFID, Microservices and architectures, video analytics, and edge computing. Retailers expect 5G surge will grow 11 times in the next five years.
In this week’s episode, our co-hosts delve into the types of curbside pickup shoppers, the future of malls, 2021 store experience projections, the most important retail technologies in 2021, fake COVID-19 vaccination cards, and much more.
