Insights

When Macy’s announced in early September that it planned to close between 35 and 40 underperforming stores, the move certainly made headlines. Unfortunately for Macy’s, it also made sense. Because, as most analysts and industry observers can attest, it only reaffirmed a storyline that has been developing for many years now: department stores are in trouble.

Retailers have always experienced a tension between investing to grow and investing to improve security. Not surprisingly, we’ve seen vulnerabilities arise when marketing and sales initiatives have trumped less sexy initiatives around security. In 2013, 61 million people had their personal data stolen from Target. One year later, 56 million credit and debit card numbers were exposed in Home Depot’s breach.

Most of us don’t know our customers. Picture the shopper who walks into a store. They’re blank canvases with no visible history, and that means there’s no easy way for sales associates to shape what happens in the next 10, 20 or 30 minutes, before they walk back out the door.

Studies indicate that online shoppers abandon websites that do not offer free returns shipping. This only makes sense, as the allure of e-commerce is convenience, a broad selection of merchandise, and competitive prices. Free shipping — from delivery through return — keeps the total purchase price similar to in-store shopping.

But there are two sides to free returns.

1. Free Returns Increase Sales

In this ever-changing, fast-paced world, it is no wonder that retail businesses must adapt to how consumers shop. With smartphones, online shopping and detailed comparison sites, shoppers are now more informed than ever about what they want. This evolution has impacted the role that retailers play in assisting consumers in their shopping experiences.

“Now Trending” is an exclusive online series to chainstoreage.com, featuring trending topics that impact the retail real estate landscape.

A change at the top has given new energy to Boston-based specialty retailer City Sports. In July, the company tapped veteran retail executive Marty Hanaka as CEO. He replaced Edward Albertian, who resigned in June.

As of Oct. 1, retailers who do not comply with the Europay, Mastercard, Visa (EMV) security standard that relies on embedded chips in payment cards face a shift in card fraud liability. Many EMV issues have not yet been resolved. Here are three big ones:

Swipe left out
Retailers have been warned repeatedly that if they do not implement EMV-compliant POS terminals, they will bear liability for any fraud resulting from an EMV card transaction.