Retail Trend

COVID, retail, retail security, loss prevention, EAS

SIX WAYS COVID-19 MADE RETAILERS THINK OUTSIDE THE BOX

COVID-19 brought hardship to the retail space. As lockdowns and unemployment rampaged on, going out to spend money was just not in the picture for the majority of people. Luckily a few advancements along with the drive to reach customers, retail stores were able to bounce back. 

 Expanding your offering 

One thing a lot of retail spaces did was expand the product line that they offered. Stores like Target, which already had a large selection of items, to begin with, reached even further by supplying essential goods in multiple ways, which is something we will touch on later in this post. 

Get Online 

Prior to COVID-19, people started to see the power of giving the customer the option to buy products online. Companies looked up to for things like this would be Amazon, Walmart, and Target, which played a role in growth in what we touched on a little bit ago. With people spending more time indoors and not wanting to go out and shop, why not bring the store right to their fingertips. Online shopping will only get more and more popular as time goes on and technology grows around it. The convenience factor will always be there and it gives people the time that would have been spent shopping, to pursue other things on the weekly to-do list. 

Be Informative 

This can be done in a number of ways. Using clothing retailers as the primary example, have ways to show off your product in more ways than just on a single model. Implementing things like size guides, models in all shapes and sizes, and even ways to mix and match multiple products. Lululemon is the best example here to give as not only did online shopping become easier for their shoppers, but with this also came an all-time high in sales and a huge increase in company stock.

Communication is key 

As seen time and time again during the height of the pandemic, being open and communicating with your customers makes things easier for everyone. Use the platforms all around you in things like social media and email flyers to get the word out. People want to know what’s going on, so coming out with plans for your retail space and products gives people the insight they have been looking for.  

Reach out 

Hitting on the point above, using things like social media platforms to start a dialogue with your customers. Be engaging, open, and informative when talking to customers, doing so will not only lead to more returning shoppers but by word of mouth, a great lump sum of newer customers. Ensuring you have a loyal customer base is one of the greatest building blocks used to example your retail space. 

 What about the In-Store Experience 

 Let’s not forget, even with all the rambling on about all the advancements made through online shopping, what about the people, especially as time goes on and things get closer to what we would call “normal”, that still want to go to an actual store? Let’s hit on a few points that have been updated over the last couple of years. Since consumers have the “get in and out quickly” mentality, retailers have reconfigured their stores to facilitate faster, more streamlined shopping trips. COVID-19 has also accelerated the need for retailers to shift to more experiential showrooms instead of traditional stores. A store that hits on both these points very well would be IKEA.

https://business.fiu.edu/graduate/insights/why-retailers-will-bounce-back-to-a-new-reality-after-the-pandemic.cfm 

 

https://www.thinkmax.com/en/insights/why-enhancing-the-post-covid-in-store-experience-should-be-top-of-mind-for-every-retailer/ 

 

https://www.retaildive.com/news/5-retailers-winning-despite-the-pandemic/586602/ 

Google shows faith in physical retail

https://www.cnbc.com/2020/12/15/lululemon-ceo-expects-digital-growth-momentum-to-continue-post-pandemic.html 

 

https://www.forbes.com/sites/rohitarora/2020/06/30/which-companies-did-well-during-the-coronavirus-pandemic/?sh=669a34287409 

Google shows faith in physical retail-header

Google shows faith in physical retail

A recent announcement by tech giant Google shows faith in the strength of bricks and mortar retail, with the company unveiling plans to open its first physical shopfront in the United States.

Due to open to the public this summer, the store will be located in Chelsea, New York, and comes after a turbulent year of shutdowns that heavily impacted retail in the United States.

Yet, as the tech company notes, physical retail is all about the customer experience and they believe a retail outlet will offer significant benefits when it comes to showcasing their products and services.

Immersion, advice and experience

Immersion, advice, and experience are set to be the key features of the new Google retail outlet, with the company explaining the store will provide a place for customers to browse and buy an extensive line-up of products made by the company.

From Nest products to Fitbits and Pixel phones, the full line-up of Google tech will be on offer.

“Throughout the store, visitors will be able to experience how our products and services work together in a variety of immersive ways, which we’re excited to share more about when the doors open,” Google explained.

Customers will be able to interact with these products, buy them directly or purchase them online and pick up instore.

Staff will also be on hand to help visitors get the most out of their device, whether that’s through troubleshooting, screen repairs, or assistance with installation.

“It doesn’t matter whether you’re a long time Pixel user, are curious about our Nest displays or want to participate in one of the how-to workshops we’ll offer throughout the year — our team will be able to provide you with help that’s specific and personalised to your needs,” Google said.

A commitment to New York

A commitment to New York

Google explained Chelsea, New York had been chosen as the location as this is where Google’s urban campus of more than 11,000 employees is situated.

“Google has been in New York for the last 20 years, and we view the store as a natural extension of our long-time commitment to the city,” they said.

“The new Google Store is an important next step in our hardware journey of providing the most helpful experience of Google, wherever and whenever people need it.

“We look forward to meeting many of our customers and hearing their feedback on the store, so we can continue to explore and experiment with the possibilities of a physical retail space and build upon the experience.”

The takeaways for retailers

Google’s foray into physical retail offers some positive takeaways for retailers.

It shows one of the largest companies in the world is keen to embrace the strengths of bricks and mortar, in the knowledge customers want to touch, feel, and experience products prior to making a purchase.

It also follows the lead of other tech-cos like Apple who have set up experiential retail stores across the globe.

Personalisation is key to Google’s approach, along with offering the knowledge and wisdom of the Google staff who are on hand to guide people through their purchasing decisions and equipment set-up.

And one thing is for sure, if a major company like Google has faith in physical retail and the concept of the customer experience it bodes well for the future of retail.

You can read more about emerging trends in retail here. Or if you’re looking to protect your store against theft, see our security tags and security labels.

Where is your retail theft occurring

Where is your retail theft occurring?

As US retail gears up and gets back to business, theft prevention is set to again become a major priority.

Although statistics indicate theft events were down throughout 2020 due to store closures, of the events that did occur, the value of the amount stolen was higher, and stores deemed essential actually experienced a shoplifting increase.

Which begs the question, where is your retail theft occurring?

Because once you know where your risk is, you can devise the best strategies to mitigate loss.

The four major types of retail theft

When it comes to analysing retail theft, there are four major areas to look at shoplifting, employee theft, fraud, and organized retail crime (ORC).

Each has an impact on retail’s bottom line, with the current statistics available here.

However, to put it plainly, theft is part of a wider retail loss problem that cost the industry $61.7 billion in 2019 or 1.62 per cent of retail’s annual bottom line.

Shoplifting

Shoplifting is often the theft issue that gets the most attention, and there’s good reason this is the case.

Shoplifting continues to be the number one cause of retail loss, with both amateurs and professional thieves contributing to the problem.

On the flipside, shoplifting is also one of the easiest problems to address, but it is imperative to have a multi-pronged approach that protects the store overall and items at a product-based level.

The top shoplifting prevention strategies include:

  • Good store layout and lighting.
  • Staff education and training.
  • CCTV.
  • Loss prevention staff

Employee theft

Employee theft

Employee theft is a bit of a hidden epidemic, but the reality is each incident of employee theft costs a retailer more than general shoplifting.

That’s because employee theft often takes longer to identify and can take the form of false returns, gift card fraud, skimming or false reconciliation of inventory.

In fact, the 33rd Annual Retail Theft Survey by Jack L Hayes International found each incident involving a dishonest employee averaged $1219.61, which was up 3.8 per cent in 2020.

The top employee theft prevention strategies include:

  • Screening of all prospective employees.
  • Staff training.
  • A good work environment with fair remuneration.
  • Staff monitoring through CCTV and POS analytics.

Fraud

Fraud is becoming an increasing problem in retail theft, with perpetrators becoming more elaborate in their scams.

Some of the most common ways that fraud is committed to involve return fraud, credit card fraud, and gift card fraud.

Meanwhile, fraud is also an issue behind the scenes in terms of supplier fraud.

The best ways to mitigate the risk of fraud include:

  • Returns and gift card policies and procedures.
  • Staff training.
  • POS analytics.
  • Payment’s security.
  • Inventory reconciliation upon receipt of goods.

Organized retail crime

Organized retail crime

One of the biggest scourges of the modern retail landscape is organized retail crime, which sees a group of thieves deliberately target a retailer to steal items in volume.

Organized retail crime is incredibly costly to retailers. The National Retail Federation notes Organized Retail Crime cost retailers an average of $719,548 per $1 billion in sales in 2020.

Perhaps more concerning is that organized retail crime is often accompanied by violence, with the NRF’s Organized Retail Crime Survey 2020 finding the majority of retailers reported thefts involved more violence in 2020 than they did in 2019.

Combatting organized retail crime involves:

  • Training staff to identify the suspicious behaviour that can indicate an organized retail crime event is about to take place.
  • Storewide security such as CCTV and loss prevention personnel.
  • Electronic Article Surveillance.
  • Secure cabinets and lockable drawers.
  • Good store layout that prevents easy smash and grab events

The final word

In the coming months, retailers will be looking to make up for the lost ground of 2020, and that means the focus should return to theft prevention.

After all, increased foot traffic equals an increased risk of shoplifting, employee theft, fraud and organized retail crime.

You can find more resources for protecting your store against each here.

10 retail theft statistics in 2021

10 retail theft statistics in 2021

With retail on the rebound after the challenge of 2020, the concept of retail theft might be the furthest thing from store owners’ minds.

But, as retailers seek to embrace the return of foot traffic in-store, preventing loss should remain a major priority.

With that in mind, here are 10 retail theft statistics to keep you focussed on the battle at hand…

Retail theft at an all-time high

According to the 2020 National Retail Security Survey, theft reached an all-time high of $61.7 billion in 2019, up from $50.6 billion the year prior.

Granted, this data is from before the Coronavirus pandemic, but further research from Jack L Hayes International indicates the issue did not disappear, despite widespread shutdowns.

In fact, their data indicates theft from stores deemed ‘essential’ actually increased in 2020.

A significant portion of retail’s bottom line

The all-time high figure from 2019 equates to 1.62 per cent of retail’s annual bottom line, compared to 1.38 per cent in 2018.

Shrink rate rising

This industry’s high shrink value in 2019 was driven by an increase in the average shrink rate, with more and more retailers recording a shrink rate above 3 per cent.

The report found in 2019, 18.2 per cent of retailers reported a shrink rate of 3 per cent or higher (compared to just 10.9 per cent in 2018).

Covid saw shoplifting incidents down, but value up

Covid saw shoplifting incidents down, but value up

With Covid lockdowns seeing much of the retail sector closed temporarily during 2020, there were fewer reported thefts, according to the 33rd Annual Retail Theft Survey by Jack L Hayes International.

Last year, shoplifting apprehensions were down 43.8 per cent and recovery dollars decreased 36.5 per cent.

However, the value of each incident increased. In 2020, shoplifting averaged $310.11, which was an increase of 13 per cent the year prior.

Dishonest employees remain a major issue

Like shoplifting, events involving dishonest employees decreased during the shutdowns of 2020.

In total, 26,463 dishonest employees were apprehended, according to the 33rd Annual Retail Theft Survey, but the value of each event was higher.

Last year each employee theft averaged $1219.61 (up 3.8 per cent in 2020).

Essential retail experiences a theft increase

While shutdowns reduced the opportunity for dishonest employee theft and shoplifting, the essential retailers that were open throughout 2020 experienced an increase in theft.

In essential retail, shoplifting rose 7.9 per cent while employee theft also rose 2.7 per cent.

Theft recovery costs money

For every $1 recovered by companies surveyed by Jack L Hayes International, $33.15 was lost to retail theft.

Therefore, only 2.9 per cent of total retail theft losses resulted in recovery.

Increased theft concern

Increased theft concern

The most recent National Retail Security Survey also found retailers were increasingly concerned about a number of loss trends emerging in-store.

The report noted in the past five years:

  • 29 per cent of retailers viewed e-commerce crime as much more of a priority.
  • 5 per cent saw organized retail crime as much more of a priority.
  • 5 per cent viewed data breaches as much more of a priority.
  • 3 per cent had been increasingly focussed on internal theft.
  • 3 per cent viewed return fraud as much more of a priority.

Organized Retail Crime on the up

According to the Organized Retail Crime Survey 2020 by the National Retail Federation, Organized Retail Crime cost retailers an average of $719,548 per $1 billion in sales, which was up from $703,320 in 2019.

Greater aggression during thefts

The Organized Retail Crime Survey 2020 also noted the majority of retailers reported thefts involved more violence in 2020 than they did in 2019.

Almost a third of respondents (31 per cent) said perpetrators were much more aggressive, 26 per cent said they were somewhat more aggressive, 41 per cent reported the aggression was the same as the year prior and just two per cent said perpetrators were less aggressive.

You can read about strategies to combat shoplifting and retail loss here. Or, view our security tags and security labels.

how-covid-affected-retail-theft

How COVID affected retail theft

The data is in and while reported incidents of shoplifting and employee theft declined in 2020, the value of each incident increased.

According to the 33rd Annual Retail Theft Survey by Jack L Hayes International, over 184,000 shoplifters and dishonest employee were apprehended in 2020 by just 22 large retailers. In total over $81 million was recovered.

Here’s a breakdown of what the survey showed…

Fewer shoplifting incidents

With Covid lockdowns seeing much of the retail sector closed temporarily during 2020, there were fewer reported thefts.

Last year, shoplifting apprehensions were down 43.8 per cent and recovery dollars decreased 36.5 per cent.

In total, 158,158 shoplifters were apprehended by the 22 major retail chains surveyed.

Meanwhile, dishonest employee apprehensions decreased by 20.3 per cent while recovery dollars were down 17.2 per cent, and in total, 26,463 dishonest employees were apprehended.

That said, shoplifting in the retail sectors deemed ‘essential’ experienced an increase of 7.9 per cent while employee theft also rose 2.7 per cent.

Incident value increased

Incident value increased

While the number of shoplifting and theft incidents was down, the value of each event increased significantly.

In terms of total thefts, each event averaged $440.48, which was up 19.2 per cent on the year prior.

Meanwhile, shoplifting averaged $310.11, which was an increase of 13 per cent and each employee theft averaged $1,219.61 (up 3.8 per cent in 2020).

The true cost of theft

The survey also took the time to dive a little deeper into how much was lost compared to how much was recovered.

“For every $1 recovered by our surveyed companies, $33.15 was lost to retail theft. Therefore, only 2.9% of total retail theft losses resulted in recovery,” they noted.

This figure is based on the assumption that annual retail sales of the participating companies were $508 billion and the average shrink rate was 1.62 per cent of sales according to the 2020 National Retail Security Survey.

The reasons behind shoplifting increases and decreases

The reasons behind employee theft increases or decreases

Those stores which experienced a shoplifting increase cited the following reasons:

  • ORC (Organized Retail Crime) continues to be a primary factor.
  • fewer stores to choose/steal from.
  • Saw significant increase in “theft for need”.
  • Legislation increasing felony thresholds embolden thieves.
  • More ‘hit n run’/fleeing shoplifters.

Meanwhile, those that noted a decrease in incidents attributed it to the following:

  • Store closures resulted in fewer shoppers.
  • Transition to deterrence/recovery during the pandemic.
  • Closing of fitting rooms for extended periods of time.
  • Focused on better customer service.
  • Less LP/AP staff due to restructuring or transition.

The reasons behind employee theft increases or decreases

In terms of employee theft, retailers which experienced an increase attributed it to the following:

  • More focus/attention towards associate theft.
  • Improved technology/analytic tools resulted in more DE cases.
  • Fewer associates in-store created more opportunities for dishonest employees.
  • Increase in loyalty card fraud.
  • Increase in discount abuse cases.

Those who enjoyed a decrease cited the reasons listed below:

  • Store closures and furloughed associates.
  • Less focus on apprehensions and more focus on pandemic issues.
  • Better prevention with additional technology at POS.
  • Reduced travel by LP/AP staff.
  • Decrease in LP/AP staff due to restructuring or transition

You can find the full Annual Retail Theft Survey here, or see our top tips on loss prevention.

retail-costly-managing-returns-challenge

Retail’s costly returns challenge

In a retail landscape where the consumer experience is designed to be frictionless and omnichannel is par for the course, returns are emerging as a major challenge for retailers.

Not only does handling returns cost a retailer time and money, but returned merchandise also presents a fraud liability and as Retail Dive recently noted, has a very real environmental impact as well.

Here’s an insight into the challenge that retailers now face when it comes to managing returns.

The returns reality

According to the National Retail Federation, customers returned $428 billion worth of merchandise in 2020.

To put that in perspective, that equalled 10.6 per cent of total retail sales last year and equated to $106 million worth of returns per $1 billion in sales.

While the percentage of returns compared to sales was roughly in line with the year prior, the NRF did go on to note online returns had experienced a marked increase that could arguably be attributed to COVID-19 and the year which saw most people shopping over the internet.

Meanwhile, the top categories of merchandise returned included:

  • auto parts (19.4 per cent).
  • apparel (12.2 per cent).
  • home improvement (11.5 per cent).
  • housewares (11.5 per cent).

More than one-fifth of returns were completed through credit cards, followed by cash (12.7 per cent) and debit cards (7 per cent).

And, while retailers may aim to make the return process simple in the interests of satisfying their customer, managing returns comes with a series of hidden and obvious costs.

A fraud liability

Managing returns - a fraud liability

Returns have always offered the potential for fraudulent activity, and as the NRF explains, last year was no different.

Of the returns made last year, they found roughly 5.9 per cent, or $25.3 billion worth, were fraudulent.

In online retail this percentage rose, with 7.7 per cent of returns to online retailers labelled fraudulent.

Ultimately that means for every $100 in returned merchandise accepted, retailers lose $5.90 to return fraud.

The hidden cost

When it comes to handling returns, it costs a retailer time and money, but often this isn’t measured.

There’s the cost of serving the customer as they make the return, then there’s the time involved with inspecting the packaging, and sending it back through the supply chain to get it back on the shelf (if indeed that’s where it is to end up).

Retail Dive recently argued measuring the cost of returns properly could improve the retailer’s bottom line.

They note most often, retailers look at their sales but do not look at returns, with the major reason being that data is often siloed throughout an organization.

Environmental issue

Environmental issue - Managing returns

In addition to costing the retailer, Retail Dive also notes returns take a very real environmental toll, and in the future that could well impact the customer’s perception of an organization’s sustainability.

Many customers believe they make a return and it’s simply placed back on the store’s shelf or repackaged and resold online.

Often, that’s not the case. The item is instead directed to a landfill or destroyed, with around five billion pounds of goods ending up in landfill annually.

Then there’s also the further environmental cost of the transportation required to handle returned goods.

So, what’s the answer?

Finding a solution to the return challenge

Handling returns properly lies in retailers having a deep understanding of the process, its cost and its impact.

There should be policies in place instore to minimize fraudulent claims, while each retailer should be mapping exactly what happens in the returns process.

Then, Retail Dive argues it could be time to investigate new models that are designed to minimize the environmental impact and improve the retail bottom line.

You can read the recent Retail Dive article on sustainable returns here, or view the strategies available to reduce return fraud here.

top 10 global retailers 2021

The top 10 global retailers 2021

The list of the top global retailers in 2021 has been released, with the impacts of COVID-19 altering the results compared to previous years.

Although big US names like Walmart and Amazon continue to reign supreme, new entrants also grace this year’s top 10 as online retailers with massive merchandise volumes make their presence felt.

Here’s an insight into the top 10 global retailers for 2021, along with changes occurring in the top player landscape.

This year’s results

Compiled by Kantar, this year’s list of top global retailers drew on slightly different criteria from previous years.

To make the cut, retailers were assessed on their direct selling in at least three countries, franchise sales where applicable, and marketplace sales and sourcing alliances.

Kantar’s Senior Vice President of Global Insights & Technology, David Marcotte, noted 2020 provided numerous challenges to retailers as they adapted to changing consumer demands and delivery methods.

“Counterintuitively for many retailers, it was the best year in their history as shoppers had a range of new needs resulting from working from home and various levels of lockdowns,” he noted.

“However, for other retailers, primarily those in malls, urban areas or in countries with strict lockdown orders, it was a year of major sales losses.”

Here’s who made the cut when it came to the top 10…

No 1 – Walmart (USA)

wallmart

Retail type: Mass/hyper
Total revenue: $519.93 billion

Walmart’s omnichannel shift continued to pay off throughout 2020, with an expansion into marketplaces and services seeing it retain pole position, despite the fact the company shed assets in several countries.

Kantar notes Walmart’s lead has shrunk this year, although the next top 50 will likely see it retain its top position.

No 2 – Amazon.com (USA)

amazon

Retail type: Ecommerce
Total revenue: $280.52 billion

Amazon’s continued expansion over the past year was evident in the company’s results, with core markets like the US, Canada and Europe also performing well.

No 3 – Schwarz Group (Germany)

Schwarz Group

Retail type: Discount grocery
Total revenue: $133.89 billion

Kantar notes Schwarz’s grocery formats dominate retail in Europe, but as a privately held retailer, it has previously missed the global list rankings.

In recent times its discount banner Lidl has seen the company enjoy growth in markets like the US, while its online operations within existing markets have also enjoyed significant growth.

No 4 – Aldi (Germany)

aldi

Retail type: Discount grocery
Total revenue: $116.06 billion

Building on its success in Central Europe, Aldi is now also one of the fastest-growing retailers in the US. The retailer is also expanding into markets like China, which has seen it jump from No 8 on the global retailer list last year to No 4 in 2021.

No 5 – Alibaba (China)

Alibaba

Retail type: Ecommerce
Total revenue: $71.99 billion

Alibaba has enjoyed rapid expansion in recent years, transforming from a business-to-business retail model into an ecommerce giant who also has a foothold into physical stores, courtesy of Hema and Freshippo.

Kantar notes its purchase of Auchan RT-Mart’s operations in China “made it effectively the largest physical retailer in the market”.

No 6 – Costco (USA)

Costco

Retail type: Club
Total revenue: $163.22 billion

Offering a very different retail model to others on the list, Costco has been steadily expanding outside the US into places like Canada (where it recently became the second biggest retailer), Australia and Europe.

“Having finally moved into ecommerce, it is positioned for fast growth in existing markets with its unique value proposition,” Kantar says.

No 7 – Ahold Delhaize (Netherlands)

Ahold Delhaize

Retail type: Grocery
Total revenue: $78.17 billion

Courtesy of a strong in-store experience and best-in-class online grocery capabilities, Ahold Delhaize has recently refreshed its image and is enjoying significant growth in both Europe and the US.

No 8 – Carrefour (France)

Carrefour

Retail type: Mass/hyper
Total revenue: $82.60 billion

Carrefour’s recent growth has centred around additional franchises in regions like the Middle East and Africa.

“The Latin American ‘atacado’ format continues to be the retailer’s largest growth engine as smaller express stores expand in all of its existing markets,” Kantor explains.

No 9 – IKEA (Netherlands)

Ikea

Retail type: Furniture
Total revenue: $45.18 billion

With its highly unique model, IKEA has firmly cemented its position as the largest furniture retailer in the world.

In addition to its existing presence, it is now expanding into Latin America.

No 10 – JD.com (China)

Jd.com

Retail type: Ecommerce
Total revenue: $82.86 billion

Kantar explains “JD.com continues to surprise even the jaded Chinese market” through its rapid diversification and growth.

Its strengths lie in its operational competence and customer service, along with its strategic partnerships with retailers, including minority owner Walmart.

You can read the full list of Kantar’s top 50 global retailers here, or compare it to the results from last year.

retail-beyond-the-pandemic-where-to-from-here

Retail beyond the pandemic – where to from here?

A new report has defined five key areas bricks and mortar retailers can focus on in a bid to improve the bottom line as the COVID recovery for the retail sector increases in momentum.

Artificial Intelligence company Olvin recently released their ‘Retail Statistics, Trends, and Forecasts For 2021’, noting there is exciting opportunity for real-world retail in the years ahead, but only if they capitalise on lessons learned in 2020.

Here’s an insight into what they found…

The fallout from 2020

Olvin minced a few words when it came to outlining just how tough 2020 was on retailers.

They noted 90 per cent of consumers said their shopping habits had been impacted by COVID, while bricks and mortar shopper volume was down by a third compared to 2019 in October alone.

Of the verticals affected, fashion was among the hardest hit, with revenues in 2020 down 27 per cent to 30 per cent compared with 2019.

Still, it wasn’t all bad news.

Some areas of retail actually grew, with food and beverage sales up 8.5 per cent, general retail increasing by 7.8 per cent, and cleaning products alone seeing a spike in sales of up to 40 per cent.

Meanwhile, omnichannel retail was of course a clear winner.

“Around 15 per cent of consumers that responded to an online survey said that as of June 2020, they were using online, pickup, or in-store services more often,” Olvin reported.

“And that’s partly because of the increase in businesses that are investing in omnichannel – the use of omnichannel approaches has risen by 80 per cent since the start of 2020.

“It makes sense – retailers have to adapt, and there has probably never been a time that they have needed to adapt faster than during a global pandemic.”

The road ahead

Alibaba

The retail sector rebounded over the holiday season with record spending also extending into Valentine’s Day and Easter.

That said, Olvin notes around 40 per cent of Americans don’t expect their finances to return to normal until late 2021 or even 2022 and beyond.

Despite this, there is a widespread sense of optimism in the recovery of the economy. Forty-one per cent of people in the US said they were optimistic about the economic future.

And, as a result, 12,200 stores have revised their plans to close.

But how can retailers maximise that optimism and translate it to the opportunity ahead?

Bricks and mortar potential

Olvin said despite a tough 2020, there is hope for the future of real-world retail based on the recent resurgence in both sales and optimism.

But they note it will centre around four key trends emerging post-COVID.

A focus on the consumer

More than ever before, the customer experience will be critical in the months ahead.

“Knowing your customers might be one of the first rules of retail, but after setting up, many businesses lose sight of what their customers want…,” Olvin said.

Ethical activity

The conscious consumer has steadily been shaping retail in recent years. The period ahead sees this trend likely to strengthen.

“The increase in the amount of information that is available about companies means that consumers are also becoming increasingly conscious of the power their purchases have,” Olvin said.

“Customers are not only choosing the products they buy much more consciously, but they are also deciding which businesses they are prepared to buy from much more carefully too.”

Cost-cutting

The retail bottom line is increasingly becoming the differentiator between the stores that thrive and those who fail to survive. And shoring up this bottom line through cost-cutting is essential.

“To remain competitive, retailers are likely to be cutting their costs significantly in 2021 – and will need to do so while keeping the right balance with their ethical credentials,” Olvin noted.

Creative use of space

The traditional bricks and mortar could well be a thing of the past, with retailers reconsidering exactly how they utilise their physical real estate.

That’s seeing an increase in alternative uses of retail space, whether it’s a dispatch outlet, an immersive experience, coffee outlets, or in-store recycling facilities.

The final word

When it comes to where people intend to purchase their Easter-related items, discount stores are the most popular choice, with 43 per cent of survey respondents noting they intended to shop there.

Discount stores are followed by:

  • Department stores – 35 per cent.
  • Online – 35 per cent (the highest percentage in the survey’s history and up from 28 per cent last year).
  • Specialty stores – 23 per cent.
  • Small businesses or local stores – 23 per cent.

Meanwhile, as vaccination rates increase, celebrations are also on the rise.

easter-tipped-to-see-highest-retail-spending-on-record

Easter tipped to see highest retail spending on record

A year after COVID plunged the US retail sector into chaos, Easter 2021 is expected to see the highest spending on record, according to the National Retail Federation.

On March 24, the NRF released the findings of their annual Easter survey, noting consumers are predicted to spend $21.6 billion collectively.

Here’s what else they anticipate will occur in retail this Easter…

Many to celebrate

After a tough 12 months, the majority of Americans are tipped to celebrate Easter this year, with 79 per cent of survey respondents indicating they are looking to mark the holiday.

On average they are predicted to spend $179.70 each, with the total likely to be in the vicinity of $21.6 billion.

The NRF notes this is down slightly on the $21.7 billion consumers were expected to outlay in 2020, but these predictions missed the mark slightly after COVID-19 emerged as a major threat.

“With new stimulus funds from the President’s American Rescue Plan, positive trends in vaccinations and growing consumer confidence, there is a lot of momentum heading into the Spring and holiday events like Easter,” NRF President and CEO Matthew Shay said.

“Many have figured out how to celebrate holidays safely with family and that is reflected in consumer spending this Easter.”

Higher than previous years

If the forecast turns out to be accurate, this year’s Easter spending will be the highest on record.

The NRF’s data indicates, while lower than predicted, consumers last year spent $175.85 each, and this year’s spending is tipped to see each fork out $3.95 more.

Prior to last year, the previous record was $151.90 in 2017, and before that, it was $145.28 in 2012.

What people will buy

What people will buy in easter

The NRF notes Easter gifts, food and candy are the biggest drivers of growth this year.

Their data indicates consumers plan to spend an average of:

  • $31.06 on gifts (up from $27.91 in 2020).
  • $52.50 on food (up from $51.76).
  • $25.22 on candy (up from $23.30).

Where people will shop

When it comes to where people intend to purchase their Easter-related items, discount stores are the most popular choice, with 43 per cent of survey respondents noting they intended to shop there.

Discount stores are followed by:

  • Department stores – 35 per cent.
  • Online – 35 per cent (the highest percentage in the survey’s history and up from 28 per cent last year).
  • Specialty stores – 23 per cent.
  • Small businesses or local stores – 23 per cent.

Meanwhile, as vaccination rates increase, celebrations are also on the rise.

How people will celebrate

How people will celebrate easter

After a year in which many people self-isolated, Easter sees them looking to spend time with family and friends in accordance with CDC guidelines.

The NRF notes:

  • 59 per cent of consumers plan to mark the holiday by cooking a holiday meal.
  • 43 per cent are looking to visit with family and friends.
  • 43 per cent will spend the holiday watching TV.
  • 31 per cent are planning an Easter egg hunt.
  • 28 per cent intend to go to church.

“However, not everyone is ready to resume in-person activities,” the NRF states, “with 22 per cent indicating they will attend church virtually and 24 per cent saying they will connect with their loved ones by phone or video.”

Follows a bumper Christmas

The expected record spending this Easter follows a bumper festive season. Final numbers indicate holiday spending for 2020 was well above expected, with $789.4 billion injected into the retail economy.

That figure was 8.3 per cent above the same period in 2019 and was more than double the 3.5 per cent average holiday increase over the previous five years, including 2019’s 4 per cent gain.

You can learn more about the trends emerging in retail here, or see our security tags and security labels for all the latest products to protect items in-store.

ways to empower your retail staff

Five ways to empower your retail staff

Just as the landscape of retail has shifted in a post-COVID world, so has the role of retail sales associate.

In an era where every face-to-face interaction matters more than before, the sales associate is now at the center of the customer experience, and their skills are often the difference between a sale and a lost opportunity.

So how can you empower your retail sales associates to meet that customer experience in a new era of expectation?

The value of the sales associate

In the push to go digital, it’s easy to assume the role of sales associate ranks less highly than in years gone by.

That couldn’t be further from the truth according to statistics that indicate a well-trained, well-informed sales associate is central to the real-world retail experience.

As a snapshot of just how important they are, a survey by Mindtree found:

  • Shoppers who interact with a sales associate are 43 per cent more likely to purchase a product.
  • Customers note their transactions have 81 per cent more value, compared to those who don’t interact with an associate.
  • In addition, customers who have enjoyed positive interaction with a sales associate are 12 per cent more likely to revisit the store.

Meanwhile, 91 per cent of sales associates strongly agree that positive interactions with shoppers result in higher conversions, yet 94 per cent feel this requires more advanced technology tools and training that they currently don’t have access to.

So how can the retail sector better empower their frontline staff?

Training and support

trainning retail staff

Good customer service comes down to good support and comprehensive training behind the scenes, with statistics consistently acknowledging the fact the customer experience starts with that of the employee.

In fact:

  • 71 per cent of executives note employee engagement is critical to their company’s success.
  • 69 per cent of employees say they’d work harder if they were better appreciated

That means staff should be empowered with support, career opportunities and training, allowing them to invest in the ethos of the retail brand.

And this training doesn’t have to take a traditional form. For example, Walmart recently rolled out 17,000 virtual reality headsets to its 5000 stores.

As Forbes explains: ”The goal is to offer employees the same caliber of training its managers get at the Walmart Academy facilities”.

Meanwhile, supporting the foundations of good training is a whole host of tools that can empower the employee in their day-to-day role.

mPOS

Mobile Point of Sale has transformed the role of the sales associate, allowing them to take the register to the customer while empowering that staff member with information.

Not only can the sales associate conduct a transaction anywhere on the floor of the store, but they can also access vital data such as stock levels, complimentary products, and customer loyalty on one compact, mobile, hand-held device.

Insight

retail insight analytics

It’s no secret analytics are now crucial to all retail operations, and these analytics allow sales associates to better understand and anticipate trends while offering a more informed customer experience.

Data and analytics in the hands of sales associates allow them insight into what items are trending in terms of sales, how busy a store is, what products are low on stock, and which stores might have inventory elsewhere.

Efficiency

With customers expecting more of stores than ever before, efficiency is becoming a key factor in the real-world retail process.

Tools that facilitate this efficiency, such as RFID inventory tracking, smart keys, and handheld devices, allow staff members to quickly serve the customer while alleviating the legwork of retail sales.

Security

While sales might be the focus, often store associates are tasked with additional roles above and beyond customer service. This includes keeping a watchful eye on the floor for shoplifting and identifying suspicious or threatening behavior.

Tools such as electronic article surveillance including security tags and labels protect a store at a product-based level, allowing staff to go about their job but be alerted should a retail theft be taking place.

For more insight into the new trends in retail, see here. Or head directly to our security tags or security labels pages to view our range of EAS products.