Loss Prevention Research Council Weekly Series - Episode 63 - Shoplifting and the State of Physical and Online Apparel Stores
With Dr. Read Hayes, Tony D'Onofrio, and Tom Meehan
Happy belated Father’s Day. Hope it was a great day for you as it was for me.
LPRC Europe – Planning continues for July 21. Retailers will receive a survey in the next week to provide their insights on priorities they would like to see in Europe.
The only unknown is COVID-19 as UK has extended partial lockdowns to July 19. We are excited about this event and hope that COVID 19 does not delay its launch once again.
Shoplifting ruling the roost at big city stores, pharmacy chains
https://www.foxnews.com/us/shoplifting-crime-cities-san-francisco-new-york
Walgreens has shuttered 17 stores in San Francisco over the past five years, the San Francisco Chronicle reported this week. And CVS has closed at least two, describing San Francisco as "the epicenter of organized retail crime."
A CVS official told the New York Post about 85% of the company’s money losses in San Francisco are a result of what the report described as "professional crime."
In December, the National Retail Federation (NRF) identified a list of top cities affected by organized retail crime, with Los Angeles ranking No.1. Chicago was found to be the second-highest, following by Miami, New York and then San Francisco, the NRF found.
In March this year, the Attorney General Alliance, or AGA, hosted a webinar on the topic, Georgia Attorney General Christopher M. Carr described organized retail crime as "a growing problem."
The AG stated the organized retail crime impacts 97% of all retailers in Georgia. He also said that this criminal activity exposes Georgia’s workforce to potentially dangerous encounters, puts consumers at risk of unknowingly purchasing expired and defective goods and threatens the health and growth of local businesses.
The Shopper Speaks: Who is the post-COVID apparel shopper?
https://www.digitalcommerce360.com/2021/05/18/the-shopper-speaks-who-is-the-post-covid-apparel-shopper/
According to Digital Commerce 360, 2020 online apparel sales totaled $240.71 billion, which was down 20.3% from $301.84 billion in 2019. There is room for a comeback and two questions remain: how much and how quickly?
The top 3 reasons that inspired shoppers to make apparel/accessory purchases were 1) replenishment (41%), 2) seasonality (36%), and 3) desire to freshen up their wardrobes (35%). Ironically, these are the same reasons a typical shopper in a non-COVID-19 world might choose to make a purchase.
Just one in four online shoppers project an increase in spending in post-COVID-19 while the majority anticipate they will spend about the same in these categories.
What’s the impact on apparel and accessories from buying on line during COVID19? 26% will factor free shipping to my order before I buy, 24% say COVID-19 has not had an impact on buying apparel and accessories online, 21% will try to shop local or mall to help physical retailers, 20% said that as COVID-19 recedes, they plan to shop in physical stores more and less online.
Interesting where shoppers shopped online for apparel doing COVID. 66% chose Amazon, a surprising 45% chose department store websites, 36% chose Walmart.com and 28% chose specialty stores.
Shoppers are also testing new apparel services with 13% purchasing apparel based on their sustainability or other pro-environmental stance.
Retailers are embracing influencers and bloggers to tell their story in today’s terms. Shoppers have made social media a part of their shopping journey as 30% indicate they use social media to find out about new brands and products, 29% click on retailer’s social ads and 28% get inspired through the tactics being utilized.
What to expect from E-commerce post COVID-19?
https://www.stellarising.com/blog/ecommerce-update-infographic
Prior to the pandemic, we expected ecommerce sales would make up 13.2% of total retail sales ($5.779T) in 2021. We now expect ecommerce sales will account for 15.5% of the $5.856T in total retail sales this year.”
The top 3 projected online growth categories in 2021 are Apparel and accessories at 18.9% driven by pent up demand, Food and Beverage at 18.1% spurred by online grocery, and Health Personal Care / Beauty at 16.1% accelerated by the pandemic.
The top 3 key motivators driving online shopping are 63% convenience, 42% seamless shopping, 38% personalization. These trends scream the future of immersive retail.
Consumers would welcome technologies to improve the online shopping experience. These could include AI, digital showrooms, virtual consultations, AR/VR, QR codes, and scan and shop. 41% of consumers feel that new tech would add value to the shopping experience, 37% expect brands to implement new technologies into the ecommerce experience, 29% want brands to show them how to use the new technology.
What working and what do consumers want from ecommerce? 64% of consumers would enjoy finding a product and returning to it later. 56% would like to more easily compare products across websites, 55% like receiving brand updates on deals, price drops, and discounts, 48% want more transparency around inventory. 47% like finding things they were not looking for while shopping online. 34% find online ads useful towards product discovery.
Above data reflects that retail will continue to become omnichannel. Many of the features cited above are also required in physical stores. The retailers that can bridge all channels seamlessly will be the winners of the next generation consumers changed by COVID-19.
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Finally on LPRC, make sure you sign up for the new AI Solve Webinar services. The first episode focuses on artificial intelligence in action. It includes industry experts from Nvidia, Dell, and Everseen. I plan to moderate a panel discussing on ROI proved AI activities in retail to date.
94 COVID-19 Vaccines are in Clinical Trials! Pharmacy Stores are Suffering in California! In this week’s episode, our co-hosts discuss these topics and more, including the LPRC Product Protection Summit is Coming July 16th, Pandemic Ecommerce Sale Projections Increase, ORC is Severely Affecting Georgia Retailers, Amazon Prime Day Increases Scams, and Colonial Pipeline Cryptocurrency was Recovered. Listen in to stay updated on hot topics in the industry and more!
