Month: March 2020

Global retailer list

Walmart tops the global retailer list

US retailer Walmart has topped the 50 global retailer list, with Amazon ranking second and Costco placing fifth, while Walgreens, Home Depot, McDonald’s, Lowe’s and TJX also feature in the top 30.

Compiled by the National Retail Federation (NRF), the rankings see retailers assessed on criteria including international direct selling capabilities, the size of the company’s international retail sales franchise sales, and marketplace sales and sourcing alliances.

So which US retailers made the grade and how did they achieve success?

Walmart – Ranked No 1

Walmart - Global retailer list
  • Business foundations: Mass/hyper
  • Total worldwide stores: 11,361
  • Stores outside the US: 5,993
  • Countries of first-party operation: 27

With total global revenue of $510.33 billion, Walmart continues to seriously outperform all its nearest rivals, retaining the top position on the global retailers list.

The NRF notes it will likely hold this position in the immediate future due to its comfortable lead over nearest competitor Amazon.

“As we think about ‘Who will be?’ it seems certain that Amazon and Walmart will be two of the retailers that remain on the top of these rankings for many years to come. Will a third or fourth retailer join this battle for the top position?” the NRF asks.

Amazon – Ranked No 2

Amazon - Global retailer list
  • Business foundations: E-commerce
  • Total worldwide stores: 472
  • Stores outside the US: 7
  • Countries of first-party operation: 18

Amazon continues to hold firm in second position with global revenue of $232.88 billion.

The NRF notes that position is largely due to a number of factors including their expansion into Singapore, Turkey, Australia, India and Brazil.

“In each of these countries two things have happened soon after Amazon’s investment,” the NRF reflects.

“One, Alibaba has attempted to match or even outpace Amazon’s investment with acquisitions and investments of its own. Two, the local press has declared that consumers are not ‘catching on’ to the Amazon way of shopping.

“Despite these obstacles, Amazon is a retailer with a treasure chest of options available with one of the world’s highest market capitalizations, a hot domestic economy in the United States where consumers have most certainly ‘caught on’ to the Amazon way of shopping, and strong momentum coming from big and healthy countries such as Germany and Japan.”

Costco – Ranked No 5

Costco - Global retailer list
  • Business foundations: Club
  • Total worldwide stores: 782
  • Stores outside the US: 239
  • Countries of first-party operation: 12

The NRF explains Costco continues to quietly surprise international retail experts.

“First, it makes consumers pay a membership fee to enter its warehouses. Second, consumers who shop at Costco routinely state that the pack sizes they purchase are ‘too big’.

“Third, Costco moves slowly, opening just one or two international locations each year, especially compared with other retailers around them that open hundreds of stores at a time.

“Fourth, Costco has resisted making wholesale investments in e-commerce, so far preferring to sell additional services online rather than core merchandise.”

Despite this, Costco reported a most recent global revenue of $149.35 billion

Honourable mentions

Global retailer list
  • Walgreens Boots Alliance (No 11) – Drugstore, revenue $115.99 billion, 13,882 stores worldwide, 4605 stores outside the US.
  • Home Depot (No 15) – Home improvement, revenue $108.20 billion, 2287 stores worldwide, 306 stores outside the US
  • McDonald’s (No 23) – Quick service retail, revenue $26.53 billion, 37,855 stores worldwide, 23,941 stores outside the US
  • Lowe’s (No 25) – Home improvement, revenue $67.20 billion, 2015 stores worldwide, 292 stores outside the US
  • TJX (No 30) – Discount fashion retailer, revenue $38.97 billion, 4306 stores worldwide, 1163 stores outside the US
  • Best Buy (No 33) – Electronics, revenue $42.88 billion, 1238 stores worldwide, 212 stores outside the US
  • Starbucks (No 36) – Quick service retail, revenue $26.51 billion, 31,795 stores worldwide, 16,607 stores outside the US
  • eBay (No 38) – E-Commerce, revenue $10.75 billion, 0 stores worldwide
  • Gap (No 45) – Fashion, revenue $16.58 billion, 3666 stores worldwide, 1028 stores outside the US

coronavirus panic purchasing

Retail sector responds to coronavirus panic purchasing

With the country now declared in a national emergency, the US retail sector has been swamped by a wave of coronavirus panic purchasing.

Like countries all over the globe, American consumers have been stockpiling everyday items including toilet paper, hand sanitizer, rice and pasta, prompting many retailers to implement buying quotas while dealing with irate clientele.

Late last week that prompted the National Retail Federation and Retail Industry Leaders Association to implore customers to purchase responsibly, while some non-essential retailers have closed their doors and grocery retailers are working around the clock to restock essential supplies.

So, what should retailers consider when it comes to panic buying.

Why the panic?

According to psychologists speaking to CNBC last week, panic buying is a form of retail therapy, where consumers purchase items in a bid to manage their emotional state.

“It’s about ‘taking back control’ in a world where you feel out of control,” one psychologist noted.

Meanwhile, another reflected stress also played a further role.

“When people are stressed their reason is hampered, so they look at what other people are doing. If others are stockpiling it leads you to engage in the same behavior,” he said.

“People see photos of empty shelves and regardless of whether it’s rational it sends a signal to them that it’s the thing to do.”

In the interim, the situation is stretching the retail sector in terms of product availability, customer service, and logistics.

A plea to be reasonable

coronavirus panic purchasing

Late last week the rush on panic buying prompted the NRF and RILA to release a statement pleading with shoppers to resist the urge to hoard ad stockpile.

“Retailers – particularly grocery providers – are working with manufacturers, suppliers and government agencies to make certain essential products and services remain readily available to customers. Retail supply chains remain strong and retail employees are working around the clock to meet consumer demand,” National Retail Federation President and CEO Matthew Shay and Retail Industry Leaders Association President Brian Dodge said.

“If you don’t need an item in the next two weeks, leave it for someone who does. Hoarding and stockpiling creates unnecessary gaps between the time that someone who truly needs a product can find it back on retailers’ shelves. This is particularly important for our most vulnerable neighbors – the elderly and those who are struggling with other health issues.

“We know this is a challenging time for everyone. But by partnering against fear and doubt, shopping responsibly and following important instructions on how we can help stop the spread of this virus, we will successfully face this challenge. Together.”

Industry responds

As the NRF recently noted, the retail sector is at the coalface of coronavirus response, and as a result they are calling on the government for guidance and support.

“Retail is serving on the front lines of an effective response to this crisis – providing drive-up COVID-19 testing, e-commerce home delivery, curbside pick-up and providing other essential services. These are just a few of the examples how retailers serve American communities in this time of extraordinary need,” the NRF stated.

“NRF believes that retail business owners are in the best position to determine whether their individual stores should remain open or close.

“Retailers also intend to fully comply with government instructions. However, clarity and certainty is needed so that businesses may plan appropriately and consumers remain confident in their availability to access groceries, home and auto supplies, pet services, farm and agriculture equipment and livestock feed, and basic home health needs for children, adults and pets.”

In the event that stores are asked to close, the NRF is also calling on governments to give as much advance warning as possible, while clearly defining the difference between essential and non-essential services.

“Sudden or total closures of retail businesses can lead to increased panic by the public. This will lead to consumers overwhelming stores, eliminating on-site supplies and exhausting staff,” the NRF said.

“If closures are warranted, the government must provide as much notice and detail as possible directly to retailers so that supply chains can be adjusted to meet sudden increase in demand both before and after closure.”

A comprehensive list of resources for retailers regarding COVID-19 is available at the NRF website, while information about protecting your store from theft is available here.

Bottle cap tag

Spotlight on the bottle cap tag

Security tags come in a range of sizes and shapes, with some designed to accommodate specific purposes and products. One such security tag is the bottle cap tag.

Designed to guard against the shoplifting and theft of liquor, bottle cap tags are available in a series of sizes to accommodate both RF and AM electronic article surveillance systems.

Here’s how they work and the benefits they offer.

Some facts about liquor theft

According to the most recent Global Retail Theft Barometer, wines and spirits rank as the most commonly stolen items in the US food and beverage vertical.

And in many ways the reason for their pilfering popularity is obvious. Not only are wines and spirits sought after for personal consumption, but high-end brands also command a high resale value.

That makes liquor a target for casual shoplifters stealing out of addiction, opportunistic juvenile thieves stealing for the thrill and also organized retail crime, who steal to re-sell the items.

The Global Retail Theft Barometer also explains spirits and wines are relatively easy to conceal, making them a natural target for shoplifting and theft.

In North America, that’s resulted in a spike in liquor thefts in recent years, especially in Canada where liquor theft has been labelled an epidemic in areas like Winnipeg and Alberta.

CBC news recently reported robberies at liquor stores in Winnipeg had been spiking for more than a year, “with thieves boldly swarming the aisles and filling backpacks and other bags with armloads of bottles before walking past staff, who have been warned not to intervene out of fear of attacks”.

“At times, staff have been threatened with weapons, including knives and pepper spray. In other cases, thieves have picked up bottles and used them as weapons, too”.

And it’s not just north of the Canadian border where an increase in thefts is occurring.

On March 2, sheriffs in Baton Rouge, Louisiana put out a call for public assistance after a couple went on a shoplifting spree, stealing liquor from multiple retailers throughout the capital area.

And that’s where targeted loss prevention strategies like bottle cap tags come into their own.

What is a bottle cap tag?

Bottle cap tag

Suited to a range of bottle sizes, bottle cap tags fit over the cap of the liquor or wine bottle and lock into position. They can only be removed with a specialist magnetic detacher.

Each tag is also fitted with a receiver that will alarm when in the proximity of the store’s electronic article surveillance (EAS) during an attempted theft.

Together, these two strategies ensure the bottle cannot be opened for the contents to be consumed instore, while any attempted theft of the bottle will cause an alarm to sound.

Bottlecap tags are available to suit both AM (acousto magnetic) and RF (radio frequency) EAS systems, making them compatible with existing EAS systems that are likely to be on the premises.

They are available in both small and large sizes to suit wine and spirits including top-shelf liquors, champagnes and standard wine bottle openings.

Advantages

Easy to fit and reusable, bottle cap tags offer a host of benefits, including:

  • Eliminating alcohol consumption instore
  • Activating an alarm during a theft
  • Easy to apply
  • Reusable
  • Available for RF or AM EAS systems
  • Available in a range of sizes
  • Easy to remove at the Point of Sale
  • Act as a deterrent to liquor theft
  • Available in bulk
  • Cost effective to implement

You can order the Bottle Cap tag here.

Modern retail

The big questions for modern retail

The US retail sector may have experienced a bumper festive season, but as many in the industry attest modern retail is a landscape that can rapidly shift.

That means many store owners will be looking to use all the tools available to gain a competitive edge and consolidate their position over the months ahead.

If you’re looking to navigate the changing landscape of retail, here are three big questions every retailer should ask themselves.

Is it frictionless?

A frictionless purchasing journey is one of the major differentiators between retailers on the cutting edge of modern retail and those languishing in the past.

So, what exactly is frictionless and how is it employed? Frictionless describes the entire purchasing journey. It’s a customer experience that eliminates barriers to buying at every touchpoint along the way.

Frictionless retail encompasses both an online and instore focus, seeing the two different types of interactions with a brand seamlessly intersect.

Strategies that accommodate frictionless retail include:

Retail Customer Experience notes the customer’s definition of frictionless continues to evolve.

“…they’ve also become a lot less patient when they encounter what they perceive as friction…consumers from all generational groups expect great service and an ideal shopping experience, regardless of where they are in their shopping journey.

“If brands don’t deliver, consumers will take their business elsewhere. In fact, 76 per cent of consumers surveyed only give brands two to three chances before they stop shopping with them, and 43 per cent cite a poor experience as their top reason to leave a brand behind for good. Simply put, consumers who encounter friction will run the other way fast, and second chances don’t come easily.”

Is it convenient?

Modern retail

According to the latest Consumer View Report by the US National Retail Federation, convenience now ranks as the third most important factor in all purchasing decisions in modern retail.

The report further found an astounding 97 per cent of shoppers noted they had backed out of a purchase because it was inconvenient to them.

Convenience is about catering to a time-poor consumer by enabling them to access items online, find them quickly instore, have them delivered if they wish and pay for them using the method they chose.

The NRF study found, in online retail, 38 per cent of people indicated convenience matters most in the research phase. That was followed by post-purchase (23 per cent), then right before the purchase (20 per cent), and finally at the checkout (18 per cent).

In stores, convenience matters most at the checkout (40 per cent), right before making a purchase (25 per cent), post-purchase (18 per cent), and then in the research phase (16 per cent).

So how do you offer convenience? Well like frictionless retail it’s all about making the experience easy for the customer.

Convenience initiatives include:

  • Omnichannel options
  • BOPIS
  • Curb-side delivery and pickup
  • Self-checkouts or scan and go

Does it resonate?

One of the major emerging trends of recent years is the concept of the conscious consumer who expects their chosen brands and products to resonate with their ethical, sustainable and/or environmental values.

In 2018, research firm Nielsen noted half of all Americans would change their consumption habits if they felt it could reduce their impact on the environment.

Labelling it ‘the year of the conscious consumer’, they found the trend was reflected in Baby Boomers, Millennials and Gen X alike. That said, technology-savvy Millennials, were more adamant in their push.

Neilson’s research noted 83 per cent of Millennials (aged 21-34) said it was extremely important to them that companies implement programs to improve the environment, compared to 66 per cent of Gen X and 62 per cent of Baby Boomers.

What’s more:

  • Millennials are twice as likely (75 per cent vs 34 per cent) than Baby Boomers to say they are definitely or probably changing their habits to reduce their impact on the environment.
  • They’re also more willing to pay more for products that contain environmentally friendly or sustainable ingredients (90 per cent vs 61 per cent), organic/natural ingredients (86 per cent vs 59 per cent), or products that have social responsibility claims (80 per cent vs 48 per cent).

So how do retailers ensure their ethos and products resonate with a conscious consumer?

Well, there are four common ways:

  • Transparency and authenticity
  • Through ethical sourcing and manufacturing
  • By taking a stand on issues that matter to consumers
  • Good treatment of staff and suppliers
  • Initiatives like recycling that minimise waste and environmental harm

The final word

The customer expectation might be changing, with new criteria added to an ever-growing list of boxes a retailer must tick. But those who recognise the shift and are at the forefront of the response, position themselves best reap the rewards of customer recognition, loyalty and purchasing.

High-shrink stores

The common denominators of high-shrink stores

Costing the US retail sector almost $50 Billion a year, shoplifting, high-shrink and loss is an issue familiar to all retailers. But as a recent article by Loss Prevention Magazine highlights, for some retailers it’s more familiar than others.

They note, while some sectors such as apparel, might be more attractive to shoplifters than others, often the real issue of shrink comes down to 10 common denominators instore.

Here’s an insight into what LP Magazine describes as the 10 common characteristics of high-shrink retail stores.

Poor customer service

Retail starts and ends with customer service, and a lack of emphasis on this critical arena has far-reaching impacts for a store, not least of which is the potential it offers possible thieves.

In an environment where staff are inattentive, where they fail to meet and greet customers or there aren’t enough staff available, shoplifting and theft have the opportunity to thrive.

The takeaway

Ensure your store is adequately staffed and employees are trained in welcoming customers, making eye contact and offering service assistance.

Poor store cleanliness

High-shrink stores

Often when retailers consider shrink, they fail to take a close look at the physical state of their store. Attention to store cleanliness sets the tone for the experience customers will enjoy instore and the level of customer service they will receive

The takeaway

Organised, clean retail outlets are a deterrent to theft, but also help retail staff identify when theft is occurring.

Lack of operational controls

Process and procedure ensure a retail outlet runs efficiently, with controls to mitigate mistakes and eliminate errors.

This control not only helps a store run more effectively, but it also improves the service of the staff and creates an environment where theft is less likely to occur.

The takeaway

Implement processes and procedures that guide every task within your retail outlet – from inventory counting to merchandising, store layout and customer service.

Inferior merchandising practices

Merchandising plays a similar role to store cleanliness. Proper merchandising and use of displays, cabinets, sales tables and fixtures makes an outlet more appealing to clientele. It draws customers to the areas a retailer wants by showcasing products, and therefore increases sales.

Proper merchandising also makes items easier to find for retail staff and acts as a deterrent to theft.

The takeaway

Consider the look, feel and lighting of your store including where high-value items are positioned and how they are showcased. Is the area warm and inviting, are customers drawn in and to popular products?

Disorganized storerooms

High-shrink stores

Front of house might be the focus for selling and customer service, but the storeroom and stock area is no less important when it comes to ensuring a store is organised and offers less potential for shrink. Disorganised storerooms create opportunity for employee theft but are also more prone to mistakes and miscellaneous loss.

The takeaway

Ensure your retail outlet has adequate storage, that there are guidelines for receiving inventory and storing it, and that the storeroom is kept clean and tidy.

Poor hiring

Retail staff are the frontline of customer service. They are ambassadors for a brand, and the first line of defence against theft. These staff can make or break the customer experience, they can also potentially be perpetrators of employee theft.

The takeaway

Have a hiring policy that adequately screens potential employees for previous experience and previous poor behaviour. Ensure references are checked and staff are adequately trained.

Insufficient attention to detail

It’s the little things that make a truly memorable customer experience. It’s also the little things that can lead to shrink, loss and shoplifting.

The takeaway

Look at your store with a critical eye while envisaging yourself in the position of the customer. Is the store welcoming? Is it well-lit? Is it organised, tidy, and is the merchandise positioned in an appealing way? Together these and other factors create the respect that customers should have for your store.

Disengaged employees

High-shrink stores

Employees who do not feel connected with the brand or well-treated by their employer are not only more likely to be perpetrators of theft, they are also less likely to care about a store’s shoplifting and loss.

The takeaway

Ensure staff feel part of a larger group and perhaps even a greater purpose that collectively they are trying to achieve. Offer ongoing raining, and above all treat staff with the respect and value that they should in turn have for your store and brand.

Closed minds

As Loss Prevention Magazine notes: Closed minds, close doors. Shoplifting and theft is always a crime of opportunity. It is also a battle that continually evolves.

The takeaway

Be willing to embrace new loss prevention methods, to consider your store critically and to understand shrink cannot be viewed in isolation, it is often the symptom of a greater issue.

To learn more about protecting your store against shoplifting see here, or view our range of security tags and security labels as part of Electronic Article Surveillance that can assist in reducing shoplifting by up to 80 per cent.