Data & Analytics

The holiday shopping season is upon us. For retailers, these last three months of the year signify a marathon of competitive sales strategies to increase foot traffic and maximize profits.    According to the National Retail Federation, the holiday season can represent as much as 30% of annual sales. To adapt to shifting consumer trends and meet peak season demands, stores plan to increase both hours of operation and staff onsite.  

With a mere six months under its belt, Lids’ new Access Pass loyalty program is driving customer engagement to new levels.   Tired of running a stagnant loyalty program that only engaged a small amount of shoppers regularly, the sporting goods headwear and apparel retailer was ready to change the game. In April, Lids switched from a static points-based program to a digital model designed to “delight” shoppers.  

Off-price retailers will remain among the top performers in the U.S. retail industry during the next 12 to 18 months.   That's according to a new report from Moody's Investors Service. The outlook is not as positive for department stores, which will continue to struggle as they seek to level the playing field with both off-price and online vendors.  

Costco Wholesale Club reported better-than-expected profit and revenue for its fourth quarter.   Net sales for the 17-week fourth quarter ended Sept. 3 rose 15.8% to $41.36 billion from $35.73 billion in year-ago period, which had 16 weeks. Total same-store sales rose 6.1%, with a 6.5% increase in the U.S. and a 4.9% increase in Canada. International same-store sales rose 5.6%    E-commerce sales in the quarter were up 21%. Membership fees rose 13% to $943 million.   

In a move to step up their customer experiences, more retailers are embracing artificial intelligence (AI).   This was according to the third quarterly “2017 E-commerce Performance Index,” a report from SLI Systems.   According to the data, 54% of companies reported they are using or plan to add AI in the future. The largest group of these respondents (20%) expect to add AI within the next 12 months.  

As of August 31, 16 retailers have filed for Chapter 11 bankruptcy in 2017. Four of those sixteen retailers are filing for “Chapter 22”, meaning this is their second time declaring bankruptcy. Chapter 22 cases show that the first bankruptcy failed and that the firm and its advisors were too optimistic regarding the firm’s viability out of bankruptcy. The chart below summarizes the four Chapter 22 filings over the past year:  

Consumers are becoming more digitally influenced on a seemingly daily basis — but omnichannel retailers find themselves hard-pressed to keep up the pace. Retailers need to meet their needs across all touchpoints, and create a frictionless shopping experience despite where the shopping journey starts and ends.   

Following suit of older generations, younger shoppers want to pay for purchases with credit cards.    Specifically, Gen Z (ages 18-24) and Gen Y (ages 25-34) are comfortable using credit to make purchases, and overwhelmingly prefer credit cards to monthly payment options, according to new data from Vyze, a provider of cloud-based financial technology solutions.   

Energy is the fourth largest in-store operating cost for retailers, with the average 50,000-sq.-ft. retail building spending around $90,000 each year on energy costs. Retail building managers are constantly trying to better regulate their buildings’ energy costs, so understanding where those charges come from can be extremely beneficial.