Fall 2019 - Inside Outdoor Magazine

Inside Outdoor | FALL 2019 38 Indeed, perhaps the primary reason stores remain relevant in the near term is simply because, “People still like to shop,” said Michael Deittrick, vice president for strategy and chief digital officer at DMI, a provider of retail mo- bile IT services. Not only do shoppers still like to purchase in-store, they often prefer it, suggests DMI research. According to a DMI surveys of more than 1,500 U.S. adults, in-store re- mains the most popular means to mak- ing purchases. Nearly nine out of 10 shoppers made an in-store purchase within 30 days of the survey versus 59 percent who did so online. Moreover, 44 percent of respondents purchased either mostly in the store are all in- store, while 27 percent of respondents shopped mostly or all online. When asked to select their “favorite way” to make a final purchase, in-store came in first again, at 46 percent and more than double those who said either Am- azon, retailer websites or mobile trans- actions. A similar majority said in-store provided “the best experience” for making a purchase. Likewise, three- quarters of respondents said store visits provided the most satisfying way to communicate with brands, while a separate study by Walker Sands found that one in four consumers say they feel more connected with brands when they go into a store. Certainly, the immediacy of the in-store experience, along with the abil- ity to “touch and feel” before buying, play an important role in these prefer- ences, but shoppers also appreciate the sense of confidence and security a physical location provides, suggest DMI findings. Presumably, that’s due to the cybercriminals and porch pirates often associated with e-commerce and at-home delivery, and the fact that half of respondents surveyed this fall by online ratings and review firm Clutch said they did not receive at least one package they ordered online in the past six months. Likewise, 43 percent of respondents said that strolling through the aisles of a physical retailer was their preferred way to browse or learn about new products, topping e-commerce sites and social media as a means for browsing and discovery. Tech’s Turn That’s not to suggest that shop- keepers are in any position to rest on their laurels. The ongoing innovation by digital-only competitors; price trans- parency’s impact on margins; a greater unpredictability in demand; and con- sumers that are more informed, less patient and harder to influence are just some of the top concerns uncovered by Retail Systems Research surveys. And successful retailers understand the pressing need to evolve and adapt. According to surveys by RSR, for instance, about two-thirds of “retail winners,” or those with above average sales growth, strongly agree that some type of “major redesign” is required to reinvent their stores. A survey from eTail Insights, meanwhile, found that six in 10 retailers plan to introduce new methods for presenting their products for the 2019 holiday shopping season, among which about a quarter plan to “fundamentally transform” the way they present their products. Retailers also have come to realize the importance of in-store technology to remaining competitive. As recently as the second quarter of 2018, less than half of retail executives surveyed by RSR strongly agreed that in-store tech- nology can create competitive advan- tages and new sources of revenue gen- eration. Just one year later, the number jumped to 68 percent who strongly agreed with that assessment, including three-quarters of “retail winners.” “Importantly, it’s clear that retailers have gained religion around the impor- tance of in-store technology,” said RSR. “We can see a significant uptick in tech- nology interest across almost all areas.” If money were no object, retailers tell RSR that new technologies would be applied to a digitizing of the sales floor by way of entertaining, informative and interactive content and systems – no doubt a reaction to the “retailtain- ment” trend and the notion that in-store experiences must be “more fun” to con- tinue attracting traffic. When it comes to technology spending, however, retailers tend to be pretty pragmatic. At the same time, they are burdened with legacy technologies and infrastructures that prevent them from moving forward with new solutions, show RSR figures. In turn, it’s likely the coming wave of retail technology deployment is largely direct- ed toward back-of-the house functions rather than front-of-the-house flair. Physical retailers, after all, have Source: McKinsey & Co; Sourcing Journal Why do you buy in the following places? Source: DMI consumer survey We want to put actionable information into the hands of managers Technology’s primary role is to help us control operational costs Technology needs to change more quickly as customer tastes change Retailer’s website In-store On mobile app Retailer’s website In-store On mobile app 45% 62% 45% 60% 30% 48% 45% Average Additional In-Store Spending by BOPIS Customers Source: NAPCO Research most convenient most convenient discount/ free shipping more secure most convenient have it immediately more secure most convenient more secure free/discount shipping more secure discount/ free shipping more secure most convenient have it immediately Free/discount shipping most convenient more secure 65% 15% 11% 73% 11% 8% 48% 23% 19% 34% 30% 25% 36% 29% 22% 39% 24% 24% RESEARCHED IMPULSE 1-10% 13% 27% 29% 13% 12% 6% 2% 11-20% 21-30% 31-40% 41-50% More than 50% None