Loss Prevention Research Council Weekly Series - Episode 50 - Store Openings Outpace Closures and Three Curbside Secrets
With Dr. Read Hayes, Tony D'Onofrio, Tom Meehan
LPRC Europe, nearly 40 attendees. Joe Coll from Macy's, Mike Jessee from Luxottica. Opening comments, Nigel Kirkup from TJ Maxx Europe who started adventure with us in the fall. Read presented an overview of LPRC including major activities through covid. Joe + Mike provided great insights on how they leverage LPRC in USA, what they find most valuable, and particular projects that stood out?
Great set of questions came in from audience which we are responding to in writing this week. My appreciate to Simon + Bane and Prosegur in general partner throughout the launch process. They created custom graphics for a professional launch and posted the calls. Overall a great launch and we are looking forward to next steps.
From CNBC. According to Coresight + Research YTD USA major retailers have announced 3199 store openings and 2598 closings. Last year same firm tracked 8953 store closures and 3248 openings for the entire year. The good news, as data indicates stores openings are now outpacing store closures. Sample retailers that have plans for more stores this year: Ulta Beauty - 40 new stores. Also rolling out smaller store version in 100 Target stores. Sephora opening 60 freestanding stores and will open up in 850 Kohl's locations. Burlington stores 75 new stores. Amazon quietly opening more grocery stores called Amazon Fresh outside acquisition of Whole Foods. Fabletics - two dozen stores. American Eagle Aerie and offline - About 100 new stores. TJ Maxx - planning to open 122 stores. Five Below 170 - 180 new stores. Gap Old Navy/Athlete - About 70 new stores. Above is a sample of specialty which has been hardest hit. More Aldi, Lidl, Sprout Markets, Trader Joes and Dollar General stores are also coming. Good news for USA retail at start of 2021.
From Bain + Company, retail can learn a lot from Australia on how to deal with the pandemic. Spending is strong. Post Covid-Retail Sales are back strong even for challenged categories such as apparel which in January 2021 was up 8% over 2020: Home Good + 20%, Liquor + 27%, Grocery +9%.
Working from home is here to stay. Will mark significant shift away from city centers and toward suburbia, demanding a structural shift in channel investments for retailers. 43% expect to work from home -vs- 21% pre-covid. Satisfaction with working from home continues to rise. Online habits are sticking. The shift toward online grocery purchases has persisted. The cooking craze is over, but convenience still rules. People expecting to dine out is increasing. What does this mean for retailers? Reinvent your consumer valve proposition for the new retail landscape. Revisit your asset base and make online channels profitable. Shed complexity in anything and everything. Take advantage of scale and unique assets to create a retail ecosystem. Maintain the new pace of innovation and decision making.
Digital Commerce 360, three secrets why curbside will not die post Covid-19. 64% of online shoppers intend to order more online in the next six months. Year on year, all metrics point to increased usage and curbside sees greatest gains. 75% completed an in-store or curbside pickup in the past six months with 22% completing 11 or more. Specialty store chains such as Best Buy, Dicks Sporting Goods, Home Depot, REI, Petco, Michaels, Office Depot led all others with curbside activities. Walmart was number 2, Grocery Stores as a category are number 3. Ratings remain high for curbside: 29% -8 out of 10, 22% -9 out of 10, 26% -10 out of 10. That 77% that gave curbside an 8+ out of 10. Three reasons why its resonating according to Digital Commerce 360: 1) Shoppers are control freaks. Shoppers want to know that the item is in stock. 58% checked online for inventory availability. 2) There is no substitute for saving time. The top 3 reasons shoppers pick BOPIS - Its more convenient. , I wanted to avoid going to the store, I can save time. 3) Mobile Fuels curbside efficiency. Apps are getting better. 41% of online shoppers used a mobile app to buy products. 31% used an app to locate a product. 28% to facilitate a pickup. Mobile is leading to much more efficient shopping.
Lessons this week, retail is not dead. store openings are out pacing closing so far in 2021. Australia has great lessons for where retail goes next. Curbside and mobile are here to stay. Follow this podcast and LPRC to leverage world lessons to a brighter future of retail.
Happy 50th Episode! Thank you all for being active listeners and looking forward to many more Guest Speakers, Topics, and Events!
Derek Chauvin Trial Could Bring Trouble and Ransomware is Spiking! In this week’s episode, our co-hosts discuss these topics and more, including LPRC FusionNet taking the lead in actionable intel for protests, Security Camera Company had a Breach, Eating Out is In Again, and LPRC Launched in Europe. Listen in to stay updated on hot topics in the industry and more!
