Survey: Retailers see need for innovation spending
Retailers are feeling confident about their overall financial situations, but less so about omnichannel investment.
This is a main finding from the 7th annual CIT Group Retail Outlook study conducted among 250 senior middle-market retail executives by Harris Poll. Although respondents are generally projecting growing sales and revenue, many feel significant investment toward innovation in an omnichannel strategy -- including website, mobile and social media channels -- will be needed to remain competitive.
Most retailers report feeling optimistic about their prospects for sales and revenue growth. About 70% predict good results from sales in all channels when looking toward the near-term future, with about six in 10 (58%) projecting that holiday sales increases will reach 6% or more.
As a result, around half or more of retailers surveyed indicate they plan to increase hourly employees (62%), in-store exempt employees (49%) and employees dedicated to Internet/mobile sales (62%) during the upcoming holiday season.
However, retailers must invest in innovation to remain competitive. Most respondents characterize revenue as growing from website (71%), in-store (59%) and mobile (57%) sales. Retailers are placing an emphasis on tech when setting their priorities for the coming year, although 63% believe that it has been challenging to implement an omnichannel strategy that provides a seamless experience to consumers.
This hasn’t stopped them from focusing on mobile. A large majority of retailers (72%) see having a mobile app as a competitive edge, with more than half (57%) believing revenue is growing from mobile. As a result, 62% expect an increase in the number of staff they devote to Internet/mobile sales channels for both the holiday season and upcoming New Year.
Other key findings include:
• Pop-ups and One-Stop Shops: More than four in 10 (45%) retailers are reporting a continued downward spiral in the relevance of the American mall as inevitable. In its wake, more than six in 10 (62%) believe pop-up retailers are creating greater competition for larger, more established retailers and “one-stop shop” retailers, such as Walmart or Target, will become the stores of the future (61%).
• Web Presence More Important than Brick-and-Mortar: More retailers feel that revenue is growing from website/web stores (71%) than from physical stores (59%). And 58% say that brick-and-mortar-only stores will not survive in the future.
• Top Trends for 2016: At least 60% of retailers surveyed indicated the following as trends for 2016: new products; creating a web presence; better use of data analytics; incorporation of chip-enabled credit and debit cards; free shipping, returns and in-store returns; and movement of business functions in-house.
• Confidence in Data Security Planning: More than three-quarters (79%) report having effective plans to deal with risks in cybersecurity and data breaches at point-of-sale. Nearly three in four (74%) feel that chip-enabled credit and debit cards provide protection for consumers.
• Bolstering Supply Chains: Half (50%) of the retailers surveyed feel concerned about their supply chain. Sixty-one percent report expanding supplier partnerships, more than half (57%) are increasing utilization of technology for logistics planning and 54% are building inventory early to prepare for potential unexpected changes in their supply chain.
This is a main finding from the 7th annual CIT Group Retail Outlook study conducted among 250 senior middle-market retail executives by Harris Poll. Although respondents are generally projecting growing sales and revenue, many feel significant investment toward innovation in an omnichannel strategy -- including website, mobile and social media channels -- will be needed to remain competitive.
Most retailers report feeling optimistic about their prospects for sales and revenue growth. About 70% predict good results from sales in all channels when looking toward the near-term future, with about six in 10 (58%) projecting that holiday sales increases will reach 6% or more.
As a result, around half or more of retailers surveyed indicate they plan to increase hourly employees (62%), in-store exempt employees (49%) and employees dedicated to Internet/mobile sales (62%) during the upcoming holiday season.
However, retailers must invest in innovation to remain competitive. Most respondents characterize revenue as growing from website (71%), in-store (59%) and mobile (57%) sales. Retailers are placing an emphasis on tech when setting their priorities for the coming year, although 63% believe that it has been challenging to implement an omnichannel strategy that provides a seamless experience to consumers.
This hasn’t stopped them from focusing on mobile. A large majority of retailers (72%) see having a mobile app as a competitive edge, with more than half (57%) believing revenue is growing from mobile. As a result, 62% expect an increase in the number of staff they devote to Internet/mobile sales channels for both the holiday season and upcoming New Year.
Other key findings include:
• Pop-ups and One-Stop Shops: More than four in 10 (45%) retailers are reporting a continued downward spiral in the relevance of the American mall as inevitable. In its wake, more than six in 10 (62%) believe pop-up retailers are creating greater competition for larger, more established retailers and “one-stop shop” retailers, such as Walmart or Target, will become the stores of the future (61%).
• Web Presence More Important than Brick-and-Mortar: More retailers feel that revenue is growing from website/web stores (71%) than from physical stores (59%). And 58% say that brick-and-mortar-only stores will not survive in the future.
• Top Trends for 2016: At least 60% of retailers surveyed indicated the following as trends for 2016: new products; creating a web presence; better use of data analytics; incorporation of chip-enabled credit and debit cards; free shipping, returns and in-store returns; and movement of business functions in-house.
• Confidence in Data Security Planning: More than three-quarters (79%) report having effective plans to deal with risks in cybersecurity and data breaches at point-of-sale. Nearly three in four (74%) feel that chip-enabled credit and debit cards provide protection for consumers.
• Bolstering Supply Chains: Half (50%) of the retailers surveyed feel concerned about their supply chain. Sixty-one percent report expanding supplier partnerships, more than half (57%) are increasing utilization of technology for logistics planning and 54% are building inventory early to prepare for potential unexpected changes in their supply chain.
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