Predictive Analytics

By Brendan O’Brien, Aria Systems

You’ve undoubtedly heard about the Internet of Things (IoT) and you might think that it’s all about wearables and energy savings. You might conclude that it doesn’t have much to do with your retail business.

Well think again.

The business impact on the retail sector from the IoT – the monitoring, measuring and reporting of all kinds of interconnected devices – is going to be huge. Bigger than anything we’ve seen before in technology.

The biggest news at the International Home and Housewares Show didn’t involve a new product introduction, but rather an information sharing arrangement between The NPD Group and Nielsen that will help retailers and supplier make sense of the market.

Four metatrends are reshaping the industry

Technology evolves to let smaller stores maximize energy savings

Cincinnati – Benefits from its acquisition of the Harris-Teeter grocery chain, which The Kroger Co. acquired in January 2014, helped boost results at Kroger during fourth quarter 2014. It was the supermarket giant’s 45th consecutive quarter of same-store sales growth.

Kroger’s net income rose 23% to $518 million, beating Wall Street expectations with a 22% increase from $422 million last year.

Phoenix – Net income at PetSmart inc. inched up 0.4% to a better-than-expected $132.1 million in the fourth quarter, up from $131.5 million in year-ago period. One-time costs associated with profit improvement and the company’s pending $8.7 billion sale to investment firm BC Partners, announced in December 2014, prevented net income from growing further.

Net sales increased 6% to $1.9 billion, from $1.81 billion. Same-store sales growth, including sales from online websites, rose 2.6%.

Nottingham, U.K. – IBM Inc. is expanding the IBM MobileFirst for iOS portfolio of apps for retailers. Boots U.K. and American Eagle Outfitters are among the retailers who have signed on for MobileFirst apps.

Portland, Ore. -- Only 18% of retail IT security professionals expressed concerned that point of sale devices were being targeted by cyber criminals, and only 20% were “confident” that point of sale devices were securely configured, according to a study by Tripwire examining the impact of emerging enterprise security threats connected with the Internet of Things (IoT) in the retail industry.

New York - For the upscale, 33-store Barneys New York, customer experience is everything. Affluent shoppers buying high-priced merchandise have certain expectations beyond the availability of quality items, regardless of channel they choose.

“We want every customer to have an online experience personalized to their taste profile, preference and geography, just as we would do in our flagship stores,” Matthew Woolsey, executive VP of Barneys digital, told Chain Store Age.

NPD Group and Slice Intelligence have announced a partnership that the companies say will create a more comprehensive data offering for retailers.

Specifically, as the announcement explains, mobile and e-commerce data from Slice Intelligence will be included in NPD’s existing checkout tracking service.