Holiday shopping splurges are not uncommon, according to a new study conducted by Prosper Insights & Analytics for the NRF. Last year, four in 10 consumers spent at least $50 more than they originally budged for, and one in eight spent more than $200 than they planned to.
Although 43% of shoppers said they’re planning to be more conservative in their spending this holiday season, 90% could be convinced to extend their spending budgets by $25 for the right reasons – 51% of which said a really good sale or promotion was the main driver. Generation X shoppers are the most likely to give into a good deal at 55%. As such, the article expects that deals and discounts will be leveraged by retailers throughout the year to drive sales.
The second-most cited reason shoppers gave as to why they’d spend an extra $25 on holiday shopping is if they found the perfect gift for someone they originally hadn’t planned to buy for (34%). Millennials are more likely than their older counterparts to do so, and one in five in this generation said they’d open their wallets for something that’s hard to come by. More than one-quarter (27%) of consumers said they’d spend more if they found something they wanted for themselves. The article suggests retailers provide gift list ideas and reminders, as well as offer “limited-time” or unique items, to capitalize on shoppers who are motivated by these reasons to bend their budgets.
Free shipping with no minimum thresholds would get 27% of consumers to spend a bit more than they planned to. In fact, women (31%) are much more likely than men (22%) to do so. An easy return policy could entice 15% of shoppers 65 years of age and older to go over their holiday budgets. Finally, 17% of consumers said they’d be willing to spend an extra $25 if they needed supplies for a last-minute holiday party.
The article also mentions the rise of personal shopping and subscription services in recent years, which points to a growing desire among consumers for extra help and advice on finding what they need. Ten percent of shoppers said they could be convinced to purchase a higher-quality product than what they initially intended to buy, and others admit that a knowledgeable sales person could influence their decision to purchase something that wasn’t originally on their list.
Read the full article here, and contact JustEnough today to learn how our Price & Markdown Planning and Promotion Management solutions help retailers maximize sales and increase traffic by making it easy to set multiple price and markdown structures with complete visibility into inventory, revenue and margin impacts.
Many retailers are looking to make omni-channel technology investments next year, according to new research from RSR. The annual benchmark on omni-channel strategies found that while the term “omni-channel” has applied to the retail industry for less than 10 years, many of the solutions that help retailers present a unified face to customers are becoming outdated. In addition, the way retailers define omni-channel and what it means for their business is evolving.
In 2017, the top three omni-channel areas retailers plan to invest in are:
- Enterprise-Wide Inventory Visibility: 37% of retailers endeavor to make a change to their system and/or process, 19% of which are planning net-new projects. RSR believes retailers have some ways to go to maintain inventory visibility – due, in part, to ship-from-store and other cross-channel efforts to save the sale at any cost. The article suggests retailers take a step back and evaluate what inventory visibility actually means to them considering that key internal stakeholders – merchandisers and store employees, for example – often have their own interpretation. In addition, the term “enterprise-wide” does little to describe what level of visibility is actually needed, how “real-time” it needs to be, or how frequent as this can vary from company to company.
- Distributed Order Management: 46% of retailers say they are planning a change to their system and/or process, 14% of which are embarking on net-new projects. Retailers may hesitate to engage in a distributed order management overhaul as the often-lengthy and complicated implementation can shine a spotlight on major process issues. However, retailers that bite the bullet and let the implementation play out as it should will be best-positioned to take advantage of newer distributed order management advancements, especially if store capabilities that drive ship-from-store and other cross-channel save-the-sale activities are included.
- Enterprise Content Management: 42% of retailers are planning to make a change to their system and/or process; 17% of which have budgeted for net-new projects. This area within the omni-channel sphere is the most digital in nature. Today’s content management systems incorporate both product and marketing needs and may continue to evolve to include capabilities like managing user-generated content.
Aside from these three omni-channel areas, retailers will also be looking to improve their Enterprise Cross-Channel Analytics. Thirty-two percent indicate they are planning a change to their current system and/or process – the majority of which at 25% have budged for net-new projects. RSR predicts this boils down to purchasing enterprise analytics that provide cross-channel visibility. The ability to tie digital insights to larger business decisions is key to succeeding with omni-channel shoppers.
Read RSR’s full omni-channel retailing analysis here, and contact us today to learn how JustEnough Software’s fully integrated suite of planning solutions help leading retailers compete in today’s ever-more complex omni-channel environment.
There’s no doubt that the retail sector has been undergoing rapid transformation – fueled by the rise of e-commerce and mobile shopping, as well as post-Great Recession changes in consumer purchasing behavior. What has emerged, according to an article published in The Huffington Post, are remarkably agile and flexible retailers that are growing and profiting despite a still-volatile marketplace.
Recent Census Bureau news shows that the change to the retail industry is not simply isolated to how and when consumers shop: In fact, there has been shift in regards to what they are purchasing. Although median incomes in the U.S. jumped an astonishing 5.2% in 2015 and core retail sales following the Great Recession had recovered by 2010, overall retail spending levels have not yet matched those pre-2008. Not unexpectedly, there has been an overall decline in sales at brick-and-mortar stores – specifically among general merchandisers (i.e., department store and discount retailers), as well as electronics and home furniture retailers. Only the food and beverage services sector (restaurants and bars) are realizing growth in this area.
According to the Census Bureau data, there are two clear trends impacting the retail industry today:
- A significant portion of goods sold at brick-and-mortar stores have shifted online, where e-commerce comprises almost 10% and is on the rise
- Customers tend to dine out when they are in brick-and-mortar locations, which is reflective of the increase in food services sales
The article points to businesses that are exhibiting the creativity and agility needed to thrive despite this shift. Gap and Macy’s, for example, are downsizing their store counts and putting more emphasis on the online shopping experience. Barnes & Noble is capitalizing on the growth of food sales by expanding its dine-in services in an effort to drive up traffic, and Amazon is opening brick-and-mortar bookstores in select markets to add to its incredibly successful online shopping model.
Although consumer spending behaviors have changed, there will always be a need for goods and services. Retailers that focus on understanding what motivates their customers to open their wallets, make data-driven decisions and can swiftly adapt to further change will be those that succeed.
Read the full article here, and contact us to learn why the world’s leading brands rely on JustEnough’s highly scalable, flexible and easy-to-use suite of retail planning solutions to keep pace with ever-more demanding shoppers and the rise of new selling channels.
Supply chain management has come a long way over the last 20 years, according to a new whitepaper by Hatmill, a leading supply chain and logistics consultancy and JustEnough implementation partner. Before the advent of social media, online shopping and increasingly demanding and discerning customers, forecasting and replenishment activities existed but only at a very basic level. Today, very few retail, wholesale or manufacturing organizations can function without a dedicated team of supply chain professionals – and for good reason. A solid supply chain gives businesses a competitive advantage, allowing them to forecast and plan for demand, which in turn helps increase availability, reduce stock levels and markdowns and, ultimately, increase sales and profit margin.
However, as the supply chain game has changed, so too has the competitive landscape. Businesses must contend with challenges that run the gamut from higher customer availability expectations to increasingly complex supply networks to erratic demand patterns resulting from promotions and markdowns.
As such, the stakes are high to achieve supply chain optimization – companies that succeed stand to see significant gains in terms of higher turnover, lower inventory levels and reduced operational costs. This is no environment for spreadsheets and disparate planning tools – the right solutions are paramount. Advanced supply chain technology is designed to intelligently forecast for demand; strategically define service-level, product-segmentation and associated safety-stock policies; provide full modelling capabilities against complex supply networks; as well as correlate demand impacts – from weather to social media.
Choosing the right supply chain management solution is only part of the equation: the implementation itself is also a key consideration in the quest to achieve operational excellence and a quick return on investment. The Hatmill article outlines the following challenges organizations often encounter when implementing new forecasting and replenishment solutions – and how independent support can have a positive impact:
- Providing implementation balance: How much should a business bend its ways to accommodate new technology, versus how much should a supply chain solution be modified to fit the business? That's a tricky balance to strike, but a knowledgeable, experienced implementation consultant can help weigh the options and help the organization avoid costly mistakes.
- Effectively resourcing the change: An organization’s technology team should be focused on driving a successful software integration, whereas the solution’s future users – a.k.a. the forecasting, planning and replenishment teams – often struggle with being involved in the implementation while keeping up with the day-to-day needs of the supply chain operations. Qualified implementation consultants know what it’s like to be in either role – as such, they are best-positioned to drive the deployment while ensuring all parties are in full agreement, continuously engaged but with minimum disruption to the business.
- Ensuring strategic alignment: No doubt, the decision to deploy new supply chain software is often a costly endeavor that stratifies the entire organization – not just its supply chain and IT teams. Good change management practices point to the need for consistent, cross-business communication regarding the implementation. Showing how the new system aligns with the company’s overarching strategic goals is paramount to ensure buy-in. The cross-functional benefits, impacts and change in process should be identified, planned, communicated and managed throughout all phases of the project.
- Capability to succeed: The best implementations take into account the needs future users will have – well before the solution goes live. New skills and expertise may be required to manage the system, which could impact existing team structures. An experienced consultant can help organizations assess their existing teams and understand where any gaps may exist, as well as provide day-one support until new talent is on-boarded.
- Effective process adoption: The ease in which new supply chain technology is adopted varies from system to system, and from organization to organization. Having led any number of implementations, outside experts can assess existing business processes, capabilities and user behaviors, as well as identify any barriers to adoption success. Such consultants often bring to bear best-in-class process flows and training programs to help ease the transition.
- Accelerated Benefits Realization: Knowing where to begin once a new system is live is crucial. Often, the simplest approach is the right one: The Hatmill article points out that utilizing a new solution in the most basic form often drives 80% of the anticipated benefits.
- Making it stick: To underscore the point above, the first six months following deployment is the most important and can make or break the decision to invest in new technology. During this time, users are most susceptible to adopting or rejecting the solution. As such, post-implementation support should not be overlooked: It’s often much more about managing user expectations and process changes, versus the technology itself.
- Making it great: Supply chain consultants can help users become more sophisticated in their approach to using new technology as time goes by. Doing so will generate greater results and establish a culture that celebrates ongoing optimization – a clear win for the business.
For more on implementation best practices, read the full article or visit www.hatmill.co. Contact JustEnough today to learn how our end-to-end, fully integrated and easy-to-use suite of retail planning solutions are quickly and seamlessly implemented to help businesses achieve bottom-line results within months of go live.