Business Intelligence (BI)

Consumers in recent years have shown a seemingly insatiable appetite for special offers and discounts. During the holiday season, retailers generated billions of dollars by rolling-out high-profile promotional strategies – but was this activity actually profitable?   For many retailers, the holiday season lead to significant profit erosion. According to DynamicAction’s Retail Index, 44% of all orders last year were sold on promotion. At the same time, however, retailers saw a 24% reduction in margins.   

The best way to drive a top-notch in-store experience is to give associates insight into as many real-time data sources as possible.   

Whole Foods Market, which is known for its premier shopping experience and customer service, wants to up the ante — especially among loyal shoppers.    By partnering with global customer science company dunnhumby, the natural foods grocer will use customer data and insights to evolve its category management and merchandising efforts. Specifically, the chain will apply customer data models, science, and industry-leading processes to make store-level merchandising decisions based on specific customer needs.  

When it comes to securing their online data, Americans have more confidence in online marketplaces than traditional retailers.   Fifty-four percent of Americans who shop online trust online marketplaces such as eBay and Amazon, with their financial information, according to a report by Blumberg Capital. In contrast, only 33% of consumers trust established retail brands such as Walmart, Gap, Target, and Macy’s.    

More customers are making digital payments through Pay with Amazon.   In 2016, more than 33 million customers have used Amazon Payments to make a purchase, according to the retailer.  

Mass promotions don’t cater to customer demand — or drive sales.   By adding a new platform that streamlines the entire promotional planning process, Toys “R” Us Canada is leaving behind vague promotions in favor of more targeted communications based on shopping behavior, store traffic, inventory and customer service.  

Kirkland’s same-store sales fell in the fourth quarter amid weak traffic early in December.   The home décor chain reported that its net sales for the 13 weeks ended January 28, 2017, increased 2.1% to $203.2 million compared to the year-ago period. Same- store sales for the quarter, including e-commerce sales, decreased 4.6%.  

PetSmart has a new strategy to keep its 55,000 employees informed and abreast of key insights.   When the 1,500-store retailer wanted to improving data accessibility across its enterprise, it turned to mobility. The chain began its mobility effort by developing one mobile app in 2010. By leveraging the MicroStrategy 10 mobility platform from long-time partner MicroStrategy, the company now has nearly 20 internal apps that deliver key insights to senior leaders and associates across the enterprise, the company said.   

Amazon continues to dictate the pace of online retailing, making it the “go-to” retailer for a majority of shoppers.   This is according to a report from PowerReviews, which surveyed more than 1,000 U.S. consumers aged 18 and over, about the features that make Amazon a leader, and the steps that brands and retailers can take to compete. Seventy-one percent of the shoppers said they make at least one Amazon purchase a month.   

Consumer confidence slipped slightly in January after reaching a 15-year high in December, though outlook for the present overrode the outlook for the future.   The index now stands at 111.8 (less than an expected 113), down from 113.3 the previous month.