Track sponsored by The Halo Effect Stephanie Cegielski, Vice - - PowerPoint PPT Presentation

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Track sponsored by The Halo Effect Stephanie Cegielski, Vice - - PowerPoint PPT Presentation

Oct 22, 2022 257 likes •535 views

Track sponsored by The Halo Effect Stephanie Cegielski, Vice President, Public Relations ICSC The Mall is Dying Can Retail Recover? Online is killing retail THE RETAIL APOCALYPSE 2 5 % Record store closings o f m a l l s t o c

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Track sponsored by

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The Halo Effect

Stephanie Cegielski, Vice President, Public Relations ICSC

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Online is killing retail

Can Retail Recover?

The Mall is Dying Record store closings

THE RETAIL APOCALYPSE

2 5 %

  • f

m a l l s t

  • c

l

  • s

e i n n e x t 5 y e a r s

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Technology Omnichannel E-Commerce Customer Engagement

Major global trends impacting our industry

Consumer Personalization Demographics Experience Value Baby Boomers Millennials Urban Density

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Physical vs Online Sales

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31% 69% Used for Store Expansion Used for Other Expenses

Omnichannel is coming to life


Nearly 75% of multi-channel retailers are more profitable than their pureplay counterparts

Stated Purpose for Most Recent VC Funding Round

Survey of 13 VC-backed “evolved pureplay” retailers Actual Stores 2016 2017 2022 5 25 100 Planned

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The Halo Effect

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Web traffic goes up in markets after retailer

  • pens a new physical store

Emerging brands (less than 10 years old) see, on average, a 32 percent climb in their share of web traffic when a new store opens, and established brands enjoy a 27 percent bump in their share

  • f web traffic.

45%

Emerging Retailers Established Retailers

36%

On average, the share

  • f web traffic

27%

within a specific market when a new store opens.

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The vast majority of the time, 86 percent, emerging brands see at least some boost after opening at least one new store in a specific market.

86%

Emerging Retailers

Increase in traffic

78%

Established Retailers

Increase in traffic

For established brands there is a lift in web traffic 78 percent of the time.

Most store openings result in higher share of web traffic

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Out of sight…out of mind

The greater the proportion of stores closed in a market, the greater the decline in the share of web traffic in the markets where the retailer operates stores.

The share of web traffic within the market goes down when a retailer closes a store

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Brand Health

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The more stores per capita in a market, the higher the awareness of that retailer

0% 25% 50% 75% 100% 2,000,000 4,000,000 6,000,000 8,000,000

Awareness of retailer Population per physical store in a market

83%

in awareness

when a retailer grows from 1 store per 3M population to 1 store per 1M

A clear trend emerges for awareness of a retailer based

  • n number of stores per
  • capita. The lower the

population count per store, the higher the awareness of that retailer.

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The Omnichannel Shopper

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In markets where stores are present, more shoppers have shopped in stores than online only

Shopping Behavior: All Tested Retailers

In markets where stores are present, 84% of respondents have shopped in the store while 16% have shopped online

  • nly.

Consumers still prefer to shop in a physical store if they are able to do

  • so. In tested markets with physical

stores present, more than half of respondents have only shopped in the physical store.

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Household Income Generations

Omni-channel Shoppers Physical Store Only Shoppers Online Only Shoppers

50% 16% 28% 6% 37% 19% 36% 8% 49% 18% 27% 6% make up half of omni- channel shoppers.

Millennials

More than half of omni-channel shoppers have an annual income of

  • ver $50,000. Of shoppers with

an annual income of at least $100,000, 89 percent shop in- store only or

  • mni-channel.

48% 22% 14% 16% 48% 22% 14% 16% 42% 23% 15% 20%

Who’s your shopper?

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Emerging Brands (Millennials) Established Brands (Millennials)

The importance of physical stores holds true for Millennials across both emerging and established retailers

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Expert Recommendations

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  • 1. Experience and engagement
  • 2. Personalization
  • 3. Best-in-class curation
  • 4. Seamless shopping
  • 5. Culture of service

1 2 3 4 5

Retailers must compete for consumers’ attention. Many are already enhancing the in-store experience to lure consumers and increase dwell time by investing in F&B offerings and ensuring the right merchandise mix, for example. Using loyalty programs for example, retailers are capturing individual shoppers’ preferences across multiple points of sale to target consumers’ desire for customization and to maximize providing what is relevant without the noise. Customers value a convenient shopping experience with curated and thoughtful product assortments, in an engaging cultural and experiential environment. Retailers must learn the individual preferences of their customers and provide the best merchandising strategies to keep them coming back. The ultimate goal for retailers is to provide a customer journey across all channels in which there are no barriers between consumers and products and the walls between

  • ffline and online shopping come down.

The core human desire for in-person connections

  • persists. The engagements between shopper and staff

should become solutions-oriented interactions where salespeople, with the assistance of in-store technological innovations, are able to provide better service and communication.

Five must-do’s for superior stores

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Global Perspective

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Visit new store Increase frequency

  • f website

visits

Global 94%

Millennials

95%

Gen X

95%

Baby Boomers

94%

33%

Millennials

39%

Gen X

34%

Baby Boomers

28%

Europe 91%

Millennials

92%

Gen X

93%

Baby Boomers

91%

35%

Millennials

42%

Gen X

35%

Baby Boomers

29%

United States 95%

Millennials

95%

Gen X

96%

Baby Boomers

94%

34%

Millennials

41%

Gen X

39%

Baby Boomers

26%

Canada 96%

Millennials

97%

Gen X

96%

Baby Boomers

96%

30%

Millennials

35%

Gen X

28%

Baby Boomers

29%

OPEN

Shopping behavior if a known retailer opens a store near a consumer’s home or workplace

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Shopping behavior if an unknown retailer opens a store near a consumer’s home or workplace

94% 95% 95% 93% 81% 80% 81% 83%

70% 75% 80% 85% 90% 95% 100% Global Average United States Canada Europe Visit Store Visit Website

OPEN

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Consumers who visited both store and website after an unknown retailer opens near home or workplace

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Methodology

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  • From February 1 to May 23, 2018, an ICSC survey, conducted by the strategy and research

firm Alexander Babbage, tracked retail web traffic and consumer brand awareness among emerging and established brands.

  • The web traffic analysis included retailers that opened or closed a total of 804 stores,

with an estimated 18.6 million square feet of gross leasable area, in 145 markets covering a population of approximately 222 million residents.

  • For each store opening, a five-week buffer was set around the opening date, and the 13

weeks before and after the buffer were analyzed. For each store closing, share of web traffic was analyzed in the 13 weeks before and after the quarter in which the store closed.

  • The analysis of consumer perceptions, including approximately 4,200 respondents,

compared results from a national benchmark (created from 21 retailers with 9,516 stores across the United States) to a subset of 923 stores in 10 markets where those retailers specifically had at least one store.

Methodology

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Track sponsored by