Despite a tough year, the latest data indicates the US retail sector overall has just enjoyed its fourth straight month of year-on-year gains, with the apparel sector leading the charge in September.

The news comes after a barrage of doom and gloom headlines, and as retailers ready for a holiday season like no other.

So, what’s really going on in retail, and what does it mean for the coming months? Let’s take a quick look at the current retail state of play.

Sales figures

According to data from the US Census Bureau retail sales have been steadily rebounding both month-over-month and year-over-year since June after record declines in spring courtesy of the COVID-19 pandemic.

In May, sales returned to month-on-month growth, making a jump of 18.2 per cent but remained below sales the year prior.

In June, sales returned to modest year-on-year growth of 1.1 per cent and month-on-month growth of 7.5 per cent.

July and August saw the growth trend continue, with July’s figures indicating month-on-month increases of 1.2 per cent and year-on-year growth of 2.7 per cent, while August sales grew a further 0.6 per cent on July and 2.6 per cent year-on-year.

Now, the most recent data indicates September sales figures have spiked 1.9 per cent compared to August and are 5.4 per cent higher than last year.

Noting the impressive September gains, National Retail Federation (NRF) president Matthew Shay said consumers were continuing to prove their resilience and strength despite a challenging year.

“Retailers and consumers are adapting to the current environment, embracing shopping in different ways and focusing on specific categories,” Mr Shay reflected.

Some sectors better than others

A breakdown of the statistics by the NRF indicates some sectors are performing better than others, with apparel leading the charge when it came to month-on-month gains in September.

The NRF noted in September:

• Clothing and clothing accessory stores were up 11 per cent month-over-month seasonally adjusted but down 12 per cent unadjusted year-over-year.

• Sporting goods stores were up 5.7 per cent month-over-month seasonally adjusted and up 18.3 per cent unadjusted year-over-year.

• General merchandise stores were up 1.8 per cent month-over-month seasonally adjusted and up 4.1 per cent unadjusted year-over-year. Department stores, a subset of the category, were up 9.7 per cent month-over-month.

• Health and personal care stores were up 1.7 per cent month-over-month seasonally adjusted and up 7.8 per cent unadjusted year-over-year.

• Building materials and garden supply stores were up 0.6 per cent month-over-month seasonally adjusted and up 23.4 per cent unadjusted year-over-year.

• Online and other non-store sales were up 0.5 month-over-month seasonally adjusted and up 27 per cent unadjusted year-over-year.

• Furniture and home furnishings stores were up 0.5 per cent month-over-month seasonally adjusted and up 7.5 per cent unadjusted year-over-year.

• Grocery and beverage stores were unchanged month-over-month seasonally adjusted but up 11.5 per cent unadjusted year-over-year.

• Electronics and appliance stores were down 1.6 per cent month-over-month seasonally adjusted and down 6.1 per cent unadjusted year-over-year.

Retail winners

While some retailers have undeniably been hit hard by the drop in foot traffic earlier in 2020, other US retailers have either pivoted to adapt or played to their strengths to enjoy a welcome boost in sales.

Retail Dive recently highlighted five of these, with some surprising verticals represented.

They noted pet retailer Chewy benefitted from operating exclusively online as consumers turned their attention to their four-legged friends during a crisis.

Clothing retailer Lululemon enjoyed surprising success in the apparel retailer, which was hit hardest during the initial period of COVID restrictions. Their success lay in the shift to casual attire as more people worked from home.

Critically Lululemon noted physical stores remained integral to their success.

“Our stores are our local hub and communities across the globe, gathering spots for our ambassadors and our connection to local studios, facilitate e-commerce transactions via our ship-from-store and buy online, pick up in-store capabilities and are a portal to bring new guests into our brand, particularly men,” their CEO told Retail Dive.

Dicks Sporting Goods also performed well in the most recent quarter, despite taking an initial hit. Their rebound was largely due to the increase in people working out at home.

Meanwhile, BJ’s wholesale enjoyed growth in sales due to consumers stocking up for the pandemic, and this was accelerated by their introduction of curbside pickup.

Finally, Target was another winner in a vertical where an increase in sales was expected. Their success was above and beyond competitors however, due to e-commerce and services like same-day fulfilment and PickUp, DriveUp.

Where to from here

The NRF believes the continued uptick in sales bodes well for the holiday period ahead, but they are yet to release forecast sales figures due to the uncertainty of the current economic climate.

“We’re optimistic about the prospects for a strong holiday season, as people want something to look forward to and bring joy to their lives,” Mr Shay said.

“While it’s been a challenging year for everyone, there’s been an enormous amount of innovation within the retail industry and retailers have demonstrated that we can keep the economy open and operating safely.”

You can learn more about preparing your loss prevention strategies for the holiday season here

As US retailers prepare to reopen their doors to the public, the sector is bracing for a spike in shoplifting. With that in mind, let’s go back to basics, providing the answers to five common shoplifting questions.

How much does shoplifting cost retailers?

Each year, US retailers lose over $50 billion in revenue to retail shrink. An estimated 35.7 per cent of that is attributed directly to shoplifting. That means about $17.55 billion worth of products simply walks out the door in the hands of individual thieves or Organized Retail Crime.

To put that in perspective, on average every retailer loses 1.38 per cent of their sales to shrink.

What are the most common items stolen?

Items that are easily concealed or are high in re-sale value are often the most commonly targeted products for theft.

Across the verticals, the latest Global Retail Theft Barometer indicates the following products are most often stolen:

• Apparel and Fashion accessories – Footwear, sports related clothing, fashion accessories, sunglasses, jewelry,

• DIY/Home improvement – Power tools, batteries, outdoor plants, screws and washers, building supplies and timber/cables.

• Electronics – Mobile devices/accessories, iPad/tablets, movies and music (DVD format), video games, laptops.

• Food and beverage – Wines and spirits, baby formula, fresh meat, cheese, coffee.

• Health and beauty – Perfumes and fragrances, makeup products, OTC drugs, razor blades, electric toothbrushes.

You can learn more about the recommended strategies for protecting each of these products here

How can you spot a shoplifter?

When it comes to shoplifter profiles, there’s no one size fits all approach. Shoplifters come from all walks of life, all nationalities and steal for a variety of reasons. For some, it’s compulsion, for others it’s organized crime, but the key indicator a shoplifter is in your store is suspicious activity.

This includes:

• Avoidance – where potential shoplifters avoid eye contact and interaction with staff, and may appear nervous, or fidget

• Excess baggage

• Excess clothing

• Regular visits with few purchases – which indicates they may be casing a store

• Distraction – where the customer asks a lot of unusual questions

• Examining, but not buying

• Exiting quickly

• Too many people in the change room

• Loose price tags on an item being purchase (which can indicate tampering)

Which are the best theft prevention methods?

Most retailers use a variety of theft prevention strategies focussing on both a product and store-wide level. These encompass staff training, bag checks, good store layout, security personnel, CCTV, and electronic article surveillance (EAS).

Of those strategies, EAS is considered one of the most effective. Comprising security tags, labels and antenna, it protects items at a product-based level, sounding an alarm when an item is stolen.

Used by over 80 per cent of US retailers, security tags and labels are found in large and small retail outlets, spanning all verticals.

Meanwhile, statistics indicate security tags and labels can reduce theft by up to 80 per cent.

Security tag or label?

In most cases, the value of the item, its size and the volume it is sold at determines whether you should be looking at tags or labels.

As a rough guide:

Tags – Are suited to clothing, apparel, fashion accessories, handbags, shoes etc  (you can learn more about selecting the right tag here)

Labels – Are suited to non-perishable groceries, pharmaceuticals, electronic accessories, perfumes, small items etc (You can learn more about selecting the right label here)

The final word

As retailers prepare to re-embrace consumers, there’s never been a better time to get back to the basics of loss prevention. You can learn more about the role EAS plays in shoplifting mitigation here, or contact our friendly team to order your tags and labels here.

Retailers and consumers aren’t the only ones looking forward to a restart of the US economy. As shops begin to reopen their doors, Loss Prevention Magazine is predicting a rise in both Organized Retail Crime and general shoplifting.

They note a slump in employment may see crime on the up at a time when retailers are also navigating a revenue downturn and restricted supply line.

So how can retailers best prepare to welcome back shoppers yet ward off crime?

Desperate times, desperate measures

According to statistics, economic downturns often result in a spike in retail crime. LP Magazine notes after both September 11 and the Global Financial Crisis there was a “significant increase in theft and ORC activity”.

With the US economy hit hard by Covid-19, that trend could again resurface in 2020, especially with so many people facing unemployment.

Meanwhile, after a national shutdown, the retail sector is looking to make up for lost economic ground, hoping consumers will re-embrace spending with renewed confidence.

The last thing the sector needs in the wake of Covid-19 is to lose further revenue due to preventable shrink.

Theft prevention measures

As retailers look to reopen their doors with new social distancing rules in play, attention should also be firmly focused on loss prevention.

This should include a multifaceted strategy that encompasses an audit of the store’s layout and lighting, staff training, surveillance, and implementing available technology like Electronic Article Surveillance featuring security tags and labels.

Staff training

Now is the time to re-educate staff about what to look for in terms of shoplifting and Organized Retail Crime, along with the process of dealing with a suspected incident.

This will be particularly critical in retail outlets where new staff members may be joining the team.

Store layout

As retail managers take a cold hard look at their stores to reconfigure them for better social distancing, attention should also be paid to the role that layout and lighting plays in shoplifting.

This involves considering questions like:

• Are there dimly lit areas or sections of a shop which are out of view of staff?

• Are high-value items secured or positioned within view of the POS?

• Are sales tables enticing enough to lure shoppers in, but far enough from the entry to deter incidents of snatch and grab?

• Is your stock protected at a product-based level against theft?

Electronic Article Surveillance (EAS)

Comprising fashion tags, security labels, and purpose-designed tags like liquor bottle caps, EAS remains one of the most effective theft prevention strategies within the retail sector. The reopening of stores is the ideal time to audit your system and gauge its effectiveness.

Now is the time to ensure:

• Tags are of a sufficient magnetic strength to reduce elicit removal (Superlock tags are the minimum magnetic locking strength recommended)

• The right type of tags and labels are fitted to the right products

• Tag pins are large enough to reduce the likelihood of illicit tag removal

• Your EAS system is operating properly

• Staff are educated on tag and label application, along with correct removal, and handling any alarms

You can read more about improving your EAS security in-store here.

Surveillance

In addition to EAS, many stores employ loss prevention personnel and technology like CCTV to guard against Organized Retail Crime and theft.

These strategies will be increasingly important as the retail sector opens for a number of reasons.

Security personnel will now also be largely responsible for handling social distancing in-store, in addition to their loss prevention duties.

That means they will require additional training and support in the form of technology.

The road ahead

The reopening of US retail outlets is welcome news for both the sector and the national economy. But if history is anything to go by the tough economic times could see a spike in crimes that are both organized and increasingly desperate.

For retailers, the key is to be ready, to be prepared and to leave nothing to chance when it comes to loss prevention.

You can view our range of security tags here and see our lineup of labels here.

As the US begins to ponder lifting lockdowns, retailers are being urged to prepare to get back to business, with the Retail Industry Leaders Association (RILA) and the National Retail Federation (NRF) this week releasing a blueprint of how they expect the reopening will occur.

Noting retail had been at the forefront of the COVID-19 crisis in terms of both servicing consumers’ essential needs and business shutdowns, the ‘Open For Business’ blueprint explains retailers have been learning from each other and “now is the time to prepare for the entire retail sector to safely re-open”.

“As an industry, we stand ready to assist governors and mayors with the important task of safely re-opening our main streets and storefronts again, with an underlying commitment to helping all families Shop Safe,” RILA and the NRF state.

Here’s a quick snapshot of how they propose going about it…

Step 1 – Contactless

Warehouses and distribution centres are the first places the blueprint suggests retail and government should focus on reopening in a bid to facilitate e-commerce, contactless curbside pickups and in-home delivery.

“In these operations, a limited number of employees are allowed in stores that are closed to the public to fulfil online orders and deliver purchases to customers who drive or walk up, observing appropriate social distancing,” they propose.

Step 2 – Reduced occupancy

Once the time is deemed right, the blueprint then suggests government and retailers look at reopening stores to the public with strict social distancing, hygiene, and sanitization rules in place along with customer limits.

Proposing protocols for both employees and customers, the blueprint calls on governments to issue clear guidelines and recommends the use of signage.

It also suggests practical measures like contactless payments and six-feet distancing in checkout queues, and between cashiers and customers at checkouts.

The blueprint further recommends store occupancy of no more than 50 per cent and no less than 20 per cent of the maximum capacity according to the relevant fire code, or alternatively thresholds of no more than five customers per 1,000 square feet of total store square footage excluding employees.

Customer education would be a key component of this phase along with increased sanitization of high touch areas, including technology like the Point of Sale. Strict hygiene measures should also be employed, the report notes, such as increased handwashing and the provision of hand sanitizer.

“During this phase, retailers open additional stores to the public with robust health and safety protocols in place to protect customers and employees and to mitigate the spread of the virus so COVID-19 does not revert,” the blueprint states.

Step 3 – Business as new normal

The third and final stage of the reopening plan sees social distancing measures reduced but sanitization and hygiene protocols remain in place.

The report suggests sanitizer should be readily supplied to staff, hands should frequently be washed, high touch areas should regularly be cleaned and any staff who are showing signs of illness should remain at home.

“There is no doubt that even under the most optimistic of scenarios, American families will be adjusting to a “new normal” for some time to come,” the blueprint concludes.

“The entire retail sector is prepared to meet this challenge and give consumers confidence in our ability to safely and warmly welcome them back into our stores. We appreciate the tireless efforts of America’s governors to safeguard our communities throughout this crisis, and we are ready to work together to safely re-open our economy.”

The RILA and NRF “Open for Business – A Blueprint for Shopping Safe” was released on April 27 and is available in full here.

A surge in touchless self-checkout, contactless payments and of course online retail are among the trends emerging in retail as the US sector grapples with swift change in the wake of COVID-19.

These are just one of the ways the sector is radically transforming, with experts predicting there will be further changes ahead as the retail industry evolves, pivots and adapts to become more resilient.

Here’s a snapshot of just some of the trends being accelerated in retail by COVID-19.

Touchless checkout

According to a recent survey by Shenkel, US consumers are rapidly embracing touchless self-checkouts as two-thirds of customers look to change their shopping habits in the midst of COVID-19.

Their findings indicate 87 per cent of shoppers say they would prefer to shop in stores with touchless or robust self-checkout options while more than two-thirds of consumers are now using self-checkout, touchless self-checkout or frictionless micro-markets to pay for groceries.

The findings further note:

• Exactly half of consumers are aware of touchless self-checkout options, where items are automatically scanned and recognized without needing to touch a pad or screen to enter their names.

• Self-checkout options remain popular with nearly 75 per cent of shoppers using self-checkout to pay for groceries frequently.

Contactless payments

US consumers have traditionally been distrustful of contactless payments but that’s quickly changing during COVID-19 and the increased hygiene concerns associated with cash payments and pin pads.

According to the Futurist Group contactless payment features are now considered a necessity by 38 per cent of American consumers, a jump of 8 per cent since the COVID-19 outbreak started.

Importantly this data was sourced early in the COVID-19 outbreak on March 3 but could be an indicator contactless card usage is set to spike in the US as a result of the Coronavirus outbreak.

“What it found was that, before Covid-19 began its spread, three in 10 US adults (30 per cent) reported that contactless card payments were something they needed, while a larger share of 41 per cent said they didn’t need the feature,” creditcards.com reports.

“But data from March 3 indicates a jump to 38 per cent indicating that contactless payment is a necessity to them, eclipsing those who say they don’t need it, at 33 per cent. This represents a 26 per cent increase in the number of U.S. consumers who said they require a contactless feature.”

Online retail

Online retail was already primed to boom between 2020 and 2023, with Visual Capitalist noting it was set to become worth $6.3 trillion in the next three years.

There’s no doubt COVID-19 has accelerated that trend, with Essential Retail noting in March, e-commerce transaction volumes increased by 74 per cent.

“The rise in e-commerce sales has been particularly profound in products related to staying indoors,” they reflected.

“Compared to March 2019, transaction volumes increased by 97 per cent for home products and furnishings, 136 per cent for DIY products, 163 per cent for garden essentials, 26.6 per cent for electronics, 29.7 per cent for jewellery, and 18.6 per cent for Telco.

“Additionally, there was a 97 per cent increase in online gaming. Categories which saw a decline in transaction volume in this period included ticketing by 60 per cent, travel by 44 per cent, and online dating by 8.9 per cent.”

Meanwhile, it’s tipped the e-commerce trend will continue long beyond the quarantine of COVID-19.

“Long term, we and others in the industry predict that the shift in consumer behaviour – opting for online purchases – is likely to outlast the crisis,” Essential Retail stated.

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

• 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

• 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

• 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

• 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

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:

• Omnichannel
• Buy online pick-up instore (BOPIS)
• Mobile Point of Sale to reduce time spent in the queue
• Scan and Go
• Curb-side pickup and delivery
• Streamlined returns

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?

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.

The US retail sector is rubbing its hand together with collective glee with news the recent holiday season delivered the high sales that were expected.

Figures released by the National Retail Federation indicate holiday retail sales totalled $730.2 billion, putting them at the upper echelon of predictions and indicating growth of 4.1 per cent on 2018.

The welcome news arrived as a further NRF report revealed convenience is now a key factor that consumers seek.

So, let’s walk through the bumper holiday season and also examine the findings of the latest NRF Consumer View Report.

A bumper holiday

In October 2019,  the NRF released their sales predictions for the holiday season ahead, noting they anticipated holiday sales during November and December would increase between 3.8 per cent and 4.2 per cent for a total of between $727.9 billion and $730.7 billion.

The final figures were in the upper band of what was expected with actual sales growth of 4.1 per to total $730.2 billion.

This was almost twice the growth rate of 2018, with online sales leading the retail charge.

Statistics indicate:

• Online and other non-store sales were up 14.6 per cent year-over-year
• Grocery and beverage stores increased 2.9 per cent.
• Furniture and home furnishings stores were up 2.6 per
• Health and personal care stores were up 1.6 per cent
• Building materials and garden supply stores were up 1 per cent
• General merchandise stores were up 0.4 per cent

 

Areas faring less well and reporting slight reductions included:

• Sporting goods stores, which were down 0.4 per cent
• Clothing and clothing accessory stores – down 1.6 per cent
• Electronics and appliance stores – down 2 per cent

 

Noting the sales totals reflected a “healthy holiday period”, NRF Chief Economist Jack Kleinhenz said it indicated consumer confidence.

“Despite a late Thanksgiving and worries about tariffs, the consumer didn’t go away. We’ve had months of strong employment numbers, high wages and strong household balance sheets,” he said.

“There’s no doubt that gave consumers a sense of confidence about their ability to spend, and they did their part to keep the economy moving.”

In the meantime, the NRF has also released its latest Consumer View Report, looking at the role of convenience in modern retail.

Latest consumer findings

The latest Consumer View Report takes a deep dive into which factors impact purchasing decisions.

Conducted over winter and the holiday sales period, the report found quality ranks as the most important factor in most people’s purchasing decisions, with 32 per cent of survey respondents indicating it was the main reason they selected an item.

Low price was the second most important criteria at 30 per cent, while convenience ranked third (13 per cent), brand values came in fourth (12 per cent), and overall brand accounted for 11 per cent.

However, the concept of convenience proved an interesting one.

The role of convenience in retail

Although only one in 10 people indicated convenience was the main factor that prompted them to make a purchase, an astounding 97 per cent of shoppers noted they have backed out of a purchase because it was inconvenient to them.

Meanwhile, 83 per cent indicated convenience is now more important to them than it was just five years ago, and for some purchases, convenience is far more important than for others.

The report found groceries top the list of products where consumers seek convenience, with 63 per cent of survey respondents saying it was “very important” and 64 indicating they’d be willing to pay more for it.

Next was clothing. Almost half (47 per cent) said convenience was very important, while 61 per cent will pay more for it.

Third was electronics, with 42 per cent of people indicating convenience was very important, and 59 per cent noting they’d be willing to pay more for it.

Personal care products and also pet supplies were next on the list, with 41 per cent of people indicating convenience was very important when purchasing in either of these categories, and 58 per cent were willing to pay more for it when buying products.

When convenience counts

Finally, the report noted convenience matters more at some points of the purchasing journey than others.

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 store, 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).

The final takeaway

As consumers feel more pressed for time, convenience now counts more than ever, and that’s only likely to increase in the coming years. As a result, consumers have welcomed initiatives like Buy Online Pickup Instore, but for many retailers there’s room for improvement, and the rewards will be worth the effort.

If retailers can offer a more convenience shopping experience, chances are consumers will pay more for the privilege.