Know Your Customer Type

Both The Home Depot and Lowe’s continue to focus on the “Pro” customer as the key growth driver for sales. In the case of The Home Depot, there are some interesting store attributes available to vendors, which describe store characteristics from the The Home Depot's perspective. Last week, I was working with one of our customers  who sells product at The Home Depot, and I had an opportunity to help them prioritize where to focus their efforts in 2017. I recommended that they spend time identifying, analyzing, and creating specific sales plans for all Pro stores. 

Figure 1To get the conversation started, I showed the vendor a simple summary of dollars per week, per store by customer store type. There are three customer store types: Pro, DIY and Core.  Figure 1 shows the average weekly sales by the customer store type. The Pro stores are clearly leading the group in average weekly sales per store by a substantial amount (Figure1).  Among their 2,200 stores in North America, about 300 Home Depot stores have the Pro customer type attribute.  This subset of stores is easily analyzed on a deep dive basis, and results can have a substantial impact on your total sales if you create the correct strategies and execute them well.

To help my customer understand the importance of the store customer type attribute, I pulled 2016 sales for The Home Depot stores in the Anaheim, CA market. If you simply type Anaheim into the homedepot.com store finder you will get back a list of 16 stores. Then, I looked at the total sales by store for each store, and segmented them based on customer type. In the Anaheim market, 12 stores are tagged as Pro stores, 4 stores are tagged as Core, and zero stores are tagged as DIY.  Figure 2 identifies the Pro stores with a yellow tag and the Core stores using a white tag. The Pro stores averaged an additional 21% in sales compared to the Core stores. 

Figure 2

As we discussed how to leverage this information, I asked the VP of Marketing to pull a list of display promotions for 2016 in the Anaheim market. They ran two displays last year in the market – one in the spring and one in the fall. Each display was a pallet display in the aisle, at the front of their department, with 48 units of product. The average sell-thru time at the Pro stores was 3.75 weeks. The average sell-thru time at the Core stores was 5.35 weeks. The Pro stores are clearly superior when it comes to a high sell thru on a display, and we concluded it would not make sense to ship a display to the 4 Core stores in 2017.  Instead, they are allocating those displays to four Pro stores in the Sacramento market. Based on 2016 sales we would expect those displays to perform at similar sell-thru to the Pro stores in Anaheim. Those Sacramento stores did not have a display last year so the sales will represent net new dollars for 2017.

Working to gain an in-depth understanding of stores and their attributes can seem like an overwhelming task when you first tackle the project. With thousands of stores and about three dozen attributes, there are a lot of variables to consider. I find it’s helpful to start with the attributes you hear Home Depot executives focusing on, and then move along to other attributes as you gain efficiency in your analysis. The Home Depot (and Lowe’s) are both very focused on the Pro, which means you should be as well.

What You Can Learn From Your Average Retail Selling Price

Last week, I had the opportunity to work with two different customers analyzing their sales at The Home Depot.  One sells products in the paint department and the other sells into the building materials department.  The analysis goal for both customer projects was to deconstruct their YTD sales and identify the factors contributing to higher than expected comp sales increases.  Both customer’s sales for a set of key SKU’s were up about 2.5% YoY and the question they wanted answered was, “What is driving the higher sales, and will it continue?”

As we deconstructed their respective sales into its component parts of distribution, price, and rate of sale, we uncovered interesting data regarding average retail selling price.  The first customer’s average retail price was pretty consistent across Home Depot stores at the expected $22.95 retail price.  There were some fluctuations, but the data was pretty clustered, as expected.

In contrast, the second customer’s average retail price was very inconsistent.  Customer #2 believed that The Home Depot was pricing their core SKU at $59.95 or $65.95, depending on the market.  However, as you can see in Figure 2, the pricing was very inconsistent across stores.  In fact, we identified stores in the same Home Depot market with a selling price variance of $28.35 per unit. 

While there can be good reasons to price a product differently by market due to shipping costs or competitive pressures, it seems irregular to have different prices within the same market.  Take a look at the average retail price of your products. It’s an important exercise that can yield some interesting insights.  It presents an opportunity to have a conversation with your merchant about pricing strategies.  And, It also provides an opportunity to identify markets with similar demographic profiles, but different selling prices, thus providing insight into what price point drives the highest sales. 

Does your average selling price match your expectations?  The answer may not be as simple as you think and could reveal some interesting insights.

The Home Depot Q4 and Full Year 2016 Results

The Home Depot continued its strong performance in Q4 2016.  The Home Depot achieved the highest sales and net earnings in company history.  Fiscal 2016 sales grew $6.1 billion to $94.6 billion, an increase of 6.9% from fiscal 2015.

Comp Store Performance

• Comp sales were up 5.8% from last year.
• 5.7% in November, 7.1% in December and 4.7% in January
• U.S. stores had positive comps of 6.3%.  6% in November, 8% in December and 5.1% in January 

HomeDepot.Com Performance

• The online business grew over 19% versus the prior year, and now represents 5.9% of total sales.
• About 45% of online U.S. orders are picked up in our stores

Merchandise departments (Q4 performance)

• Flooring and tools had double-digit comps in the quarter.
• Lumber, Outdoor Garden, Appliances, Decor, Indoor Garden, Lighting and Plumbing were above the company's average comp.
• Hardware, Millwork, Electrical, Kitchen-Bath, Building Materials and Paint were all positive, but below the company average.

Transaction Summary (Q4 Performance)

• Total comp transactions increased 2.8%
• Comp average ticket grew by 2.9%.
• Looking at big ticket sales in the fourth quarter, transactions over $900, which represent approximately 20% of U.S. sales, were up 11.6%. The drivers behind the increase in big ticket purchases were Flooring, Appliances, and several Pro categories.

2017 Forecast

• Forecast 2017 comp sales of approximately 4.6%

Carol Tome’s comments on forecast methodology:  U.S., GDP is projected to grow by 2.3% in 2017. We then add to that the benefits we believe we will get from rising home prices, housing turnover, and household formation. And we think housing will add another point-and-a-half growth to our overall growth next year.  To that, we have added a little bit of share shift in Appliances and certain building categories. And just to put that in perspective, in 2016, Appliances contributed 50 basis points of our comp growth.  And then we're adding something else this year that we haven't included in the past, and that's what we call the cumulative wealth effect of home price appreciation. If you look at home equity, since 2011, home equity is up 108%. On average, that equates to $50,000 per household. And we believe that's contributing – as people use the equity of their house to spend back into their house, we believe that's contributing to our growth, so we factor that into our guidance, and that's how we got to the 4.6%.

• While private fixed residential investment as a percentage of GDP now stands at 3.8%, it has a way to go before it reaches the historical mean of 4.5%.
• Home price appreciation, housing turnover, and household formation continue to be tailwinds for our business.

WHAT’S NEW IN DIGITAL AND SOCIAL MEDIA FOR BEAUTY? OVER 200 BEAUTY EXECUTIVES MEET IN NYC TO SHARE AT THE WOMEN’S WEAR DAILY (WWD) DIGITAL BEAUTY FORUM

At Accelerated Analytics, I work with over 20 beauty brands to supply key reports and analysis of how their products are performing at their retail stores. Our expertise, based on years of working with beauty retailers like Dillard’s, Ulta, Sephora and Nordstrom, help account executives, planners and sales reps to track sales to goals, store display marketing, promotional effectiveness and inventory stock levels. I joined the WWD Digital Beauty Forum in New York on Tuesday to hear where the beauty industry is going with digital marketing and social media.

It was an inspiring day! From hearing how the Estee Lauder brand Smashbox is revolutionizing how to use social media influencers to expand their brand awareness, to learning how beauty brands like NYX and Shiseido are using digital technologies to expand social experiences online and in stores to broaden their customers’ experiences was mind blowing. In the ever-important retail need to address the increasing customer desire to have an experience, and not just shop, the beauty industry is using technology in a variety of ways to personalize what they can do for their customers and make their brand fresh, exciting and fun!

Beauty products are personal. Ecommerce efforts to use digital technology to put colors and skin care effects into a virtual customer’s hands live, is amazing. When a customer is in a store, actually touching products, digital technology gives shoppers a hands-on experience to custom-tailor products. Events and contests around pop-up stores is getting more and more common.

What resonated the most with me is, with so much activity and options for shoppers, and the very fast pace of beauty sales, the ability to see what is selling organically and where inventory is at all times is critical. I’m excited that our solution helps my beauty customers, like Coty, L’Oreal, Bvlgari and Parlux, to get the insights they need, when they need it, and gives them the opportunity to expand their digital reach to customers and react quickly when these initiatives take off!

Are Omnichannel Shoppers More Valuable to Retailers?

That’s the question that the Harvard Business Review set out to answer in a recent study conducted between June 2015 and August 2016. They collaborated with a major U.S. Company which operates hundreds of retail stores across the country and studied the behavior of 46,000 shoppers. The customers were asked about “every aspect of their shopping journey with a retailer”, focusing on which channel’s they used and why. The majority of the shoppers who participated - 73% - used multiple channels during their shopping experience and were deemed “omnichannel customers” by the study. Only 7% were online-only shoppers and 20% were store-only shoppers.

In tabulating results, the study considered each app, digital tool and shopping venue provided by the retailer as a separate channel, and discovered that the more channels customers use, the more valuable they are. In fact, the study revealed that omnichannel customers are “more valuable on multiple counts.” They spent an average of 4% more on every shopping occasion in the store, and 10% more online than single-channel customers. Additionally, with every channel that an omnichannel shopper used, they spent more money in the store. For example, compared to shoppers who used just one channel, customers who used four or more channels spent an average of 9% more in the store.

In additional to spending more, omnichannel shoppers were more loyal. According to the study findings, within six months after an omnichannel shopping experience, these customers had logged 23% more repeat shopping trips to the retailer’s stores and were more likely to recommend the brand to family and friends than those who used a single channel.”

Source: Harvard Business Review

Using Sell-Thru for Decision-Making

Sell-Thru is a key performance indicator for vendors and retailers alike. It allows you to understand the rate at which inventory is being consumed as it relates to sales.  Because sell-thru is a leading indicator, it is also very useful for predictive analysis.

When calculating sell-thru, careful consideration should be given to how the formula is constructed.  As with any business metric, there is more than one possible answer, but only one is correct in terms of meeting the business user's needs.

So ask yourself: what is the difference between calculating sell-thru using all available weeks of sales and inventory data as opposed to using the most recent 4 weeks of data?  Both methods are valid, although they may produce very different results.  The first method will tend to flatten out fluctuations due to promotions.  This is useful if the item is on replenishment and operates within established min/max guidelines.  The second method of calculating sell-thru, using the most recent 4 weeks of data, tends to provide a rolling snapshot of performance.  This is very useful if an item is highly promoted and you want to understand the impact of lift within a given promotional window.

Both methods are correct, but one will be more useful than the other to the decision makers at your organization.  Here are three best practices to make sure your team arrives at the most useful method:
1)  Have simple design sessions with business users to write out on a whiteboard all calculations.
2)  Discuss if the calculation supports the intended business decision.
3)  Adjust the formula accordingly.
4)  Identify low, middle, and upper performance conditions for each metric so exception dashboards can be created.
5)  Document your work in a place all team members can access so there is no confusion on how the calculation is performed, or how the performance conditions are aligned.

Interested to know how your sell-thru percentages compare to our benchmark data? The Accelerated Analytics research team has compiled the average sell-thru percentage for eight retail categories each at 8, 13, 26 and 52 weeks and put it all together in our Sell-Thru Benchmark Data Infographic. To request the infographic simply complete the form below and it will be e-mailed to you right away!

Accelerated Analytics Customers L’Oreal and Coty Ink Big Business Deals in the New Year

The string of beauty deals continues in the new year with significant beauty acquisitions for Accelerated Analytics customers L’Oréal and Coty, all within a 48-hour period earlier this week.

L’Oréal will almost double the size of its Active Cosmetics Division with the acquisition of CeraVe, AcneFree and Ambi for a reported $1.3 billion. Founded in 2005, CeraVe develops cleansers, moisturizers and baby products and is one of the fastest-growing active skincare brands in the United States, L’Oréal said. AcneFree provides acne treatments and skin cleansers, while Ambi makes products to treat dark spots and brighten skin. The new trio of labels generates yearly revenue of about $168 million combined, and puts L’Oréal head-to-head with Nestlé’s blockbuster brand Cetaphil.

“Although the price is very high,” said Eva Quiroga, an analyst at Deutsche Bank, “it is supported by the strong growth the business will likely achieve, initially in the U.S. and eventually on a more global basis. It is the kind of global expansion that L’Oréal has historically excelled at.”

Coty is the latest consumer-products maker to acquire an online start-up with the purchase of Younique, a Utah-based company that makes its own line of skin care, body care and makeup products that are sold via peer-to-peer social selling. Coty will acquire 60% of Younique for $600 million in cash and Younique founders Derek Maxfield and Melanie Huscroft will own the remaining 40% and stay with the company in executive roles. Younique’s sales are made mostly online through virtual parties on Facebook and other social platforms. Modeled after more traditional direct-selling models, Younique is part of a group of young companies that have adapted the model to the internet age.

Sources: Reuters, Women's Wear Daily

Stanley Black and Decker to buy Craftsman

The latest in a recent flurry of moves to raise cash, Sears Holding announced Thursday that it will sell its well-known Craftsman tools brand to Stanley Black and Decker. The value of the deal could top $1 billion.

Stanley will pay $525 million up front - the deal is expected to close later this year - and another $250 million at the end of year three. Stanley will also pay Sears a percentage of its new sales of Craftsman products for 15 years, and Sears will continue to sell Craftsman-branded products through a perpetual license deal, which will be royalty-free for the first 15 years, and royalty-bearing after that.

"This agreement represents a significant opportunity to grow the market by increasing the availability of Craftsman products to consumers in previously underpenetrated channels,” said Stanley President and CEO. “We intend to invest in the brand and rapidly increase sales through these new channels, including retail, industrial, mobile and online.”

Sears, once an icon of American retail, has reported declining sales for years. In addition to the Craftsman deal they also announced plans to close 150 more of their struggling Kmart and flagship Sears stores.

Sears CEO Eddie Lampert said that Sears “will continue to take actions to adjust our capital structure, meet our financial obligations and manage our business to better position Sears Holdings to create long-term value."

Sources: CNN, Chicago Tribune, HBS Dealer

Robert Lighthizer Named Chief Trade Negotiator; Trade Policy Changes on Horizon

Yesterday, President-elect Trump named veteran Washington trade lawyer Robert Lighthizer as his chief trade negotiator in a move that confirms Mr. Trump’s intention to get tough with China, Mexico and other trade partners.

Lighthizer, who is with the firm Skadden, Arps, Slate, Meagher and Flom and was deputy trade representative during the Reagan administration, would replace Michael Froman, the Obama administration’s representative who led negotiations on a Pacific trade pact that would have covered nearly 40 percent of the global economy and was seen as a counterpoint to China’s rising clout.

Trump, however, argues that deals such as the North American Free Trade Agreement and the Trans-Pacific Partnership kill American jobs. He has vowed to make smarter deals and has signaled a tough stance on trade with China, including levying a hefty tariff on Chinese imports.

Lighthizer has previously accused China of unfair trade policies and has long advocated protectionist trade policies. In his role during the Reagan administration, he helped to stem the tide of imports from Japan in the 1980’s with threats of quotas and punitive tariffs. In public testimony in 2001, Lighthizer argued that China has failed to live up to commitments made in 2001 when it joined the Word Trade Organization and that more aggressive tactics are needed to “force change in the system.”

The Wall Street Journal’s William Maudlin writes that the choice of Lighthizer as U.S. trade representative signals a sharp shift in trade strategy that “will include a move away from multilateral deals, a tougher approach to China and Mexico and the threat of duties to impose higher costs on imports”. Mainstream economists warn that protectionist policies like import taxes could impose higher prices on consumers and slow economic growth.

Sources: Wall Street Journal, Bloomberg, Rueters

THE OMNICHANNEL HOLIDAY CHALLENGE WITH STORE INVENTORY AND FORECASTING

Holiday shoppers have just a few more days to get their shopping done. Do they order online and get it shipped? Do they order online and then pick up in store? Or do they go into a store hoping to walk out with the items they want to purchase? Retailers have the challenge of meeting all of these needs, many of them using store inventories as distribution centers to handle online purchases, whether shipping it to the customer’s home or having it available so they can pick up the item in the store.

An online customer who is having their products shipped does not care which store or warehouse handles their purchase. A shopper in the store or on the way to a store does – they expect the item to be available on the shelf. Retailers are using different strategies to manage these needs. Some, such as Target, are holding inventories back from online purchasers in order to keep inventory on the shelf for their in-store shoppers. In Target’s example, an online shopper may try to go online and buy or reserve an item in store but are unable to do so. Other retailers, like Toys ‘R Us, have a “first-come, first-served” strategy. The big challenge is for retailers to determine, by product and by store, how to divvy up the store’s stock, and need to forecast in-store purchases to try to have the right amount of inventory on the shelves.

 

Tracking item-store inventories as real time as possible is the best way for these retailers to make these forecasts. Retailers without inventory systems who can keep up with purchases are having to keep extra available in the store and not online, in order to avoid the mistake of selling the same item to two customers around the same time.

Source: Chicago Tribune.com, Wall St. Journal

2016 WAS A GREAT YEAR FOR DIY RETAIL

The holiday season is upon us, and how DIY retail will fare remains to be seen, but 2016 by most accounts has been a great year for DIY retail. The North American Retail Hardware Association (NRHA) is estimating industry growth for 2016 to end at 5.8%. The Home Improvement Research Institute (HIRI) is estimating a little higher, at 6%. The US Census Bureau reports home improvement industry sales through September at 6.7% growth over 2015.

Building materials and home improvement retail sales are 3 to 1 higher than overall retail sales increases for this year.

What has led to the success, and which areas in the DIY space have seen the best results?

Most economists agree that the renewed housing market seen in 2016 will continue into 2017. Add to that higher consumer confidence rates, multi-family housing construction has led to higher sales at home centers and lumber dealers. Remodeling projects and big-ticket purchases are stronger. Big ticket items, such as appliances, have seen the biggest sales uptick in the segment.

Accelerated Analytics DIY customers, using their retailer POS data to analyze sales and inventory, are experiencing the same trends. Across the Accelerated Analytics customer index, June and July showed poor results, followed by an improving August and strong September. 20% of Accelerated Analytics customers’ sales tickets are big ticket items, over $900 per sale. These items were identified as appliances and other expensive items, along with supporting/supplemental products.

The NHRA is predicting 2017 sales to continue this trend and that home improvement product sales should continue to outpace overall retail sales in 2017, anticipating DIY industry growth in the range of 5%.

For more industry stats and observations, download the Accelerated Analytics Retail Industry Briefing Book, which is a monthly publication of key retail industry trends, published to over 7,000 subscribers per month.

Sources: Accelerated Analytics, Hardwareretailing.com

Confessions of an Amazon Prime Junkie

by Julie Stallman, Marketing Coordinator at Accelerated Analytics

I think my family set a new record yesterday. As we were pulling into the driveway last night after our daughter’s high school chorus concert, I looked at the house, admiring our holiday lights, and spied a package on our front porch. I laughed and told my husband that I think that brought the day’s total to seven - surely a record. But when I opened the front door to retrieve it, I saw that there were actually two packages on the porch, bringing the day’s grand total to eight packages delivered. And they were all from Amazon.com. 

My husband and I have been members of Amazon Prime for as long as I can remember. We joined years and years ago, back before they streamed music, tv and movies and way before e-commerce and Cyber-Monday were an integral part of holiday shopping. In fact, I can’t really remember life before Amazon Prime. And if you tell me you’re not a member I’ll likely react with a stunned look of disbelief and feel kind of sorry for you. You mean you wait more than two days for your packages AND you pay for shipping?

Suffice it say we’re fans of the e-commerce giant. It’s not uncommon for me to place multiple orders in one day, because, well, I can. And as I do, I often think to myself “Gosh, the people at Amazon must hate us.” I imagine the holiday elves at the Amazon warehouses cursing our family and wondering if we’re just trying to make their lives difficult. If they had a naughty list, I feel sure we’d be on it. But . . . they make it so easy. In reality, my guess is we’re not so different from all of the other Amazon Prime members out there this holiday season and anytime for that matter.

In a blog post this fall, we reported that ecommerce in general continues to grow at a rate that outpaces retail growth. We detailed that according to eMarketer, while moderate growth of 3.3% is expected for 2016 holiday retail overall, ecommerce is expected to make its biggest jump since 2011 and post growth of 17.2% this holiday season.

With an estimated U.S. ecommerce market share reported anywhere between 40% and over 65%, Amazon.com is the biggest player in the ecommerce market. Amazon Prime was launched in 2005 for $79 a year as an unlimited express shipping membership program for about 1 million products. While Amazon doesn’t disclose the exact number of Prime members, today it’s estimated to be about 80 million worldwide and about 65 million in the US alone. According to Statista.com, that’s an increase of 10 million subscribers since December of last year and more than double the estimated 25 million subscribers in December of 2013. Clearly, Prime’s growth has ramped up over the past few years as they have added more benefits, and content, expanded to new markets and introduced new membership options. Earlier this year Amazon Prime began offering monthly Prime membership plans for $10.99 a month and a monthly Prime Video plan for $8.99 a month, giving consumers more options and attracting new subscribers.

According to Consumer Intelligence Research Partners (CIRP), just over half of Amazon customers - 52% - are Prime members, each of whom spend an average of $1200 a year. That compares to approximately $600 per year spent by non-Prime members. And if you look at the frequency with which Amazon shoppers make a purchase on Amazon.com, Prime members are far more likely to shop more frequently than non-Prime members. According to a survey reported on Statista.com, 18% of responding Amazon Prime members said that they shop on the website at least once a week and 11% of responding Amazon Prime members said that they shop on the website at least twice a week.

So while my family’s delivery record seemed extreme yesterday, it sounds like our Prime-junkie tendencies place us in good company with a boatload of U.S. consumers. Hopefully we aren’t irritating the heck out of the Amazon shipping employees, and maybe they even just smile and shake their heads when we place our third or fourth order of the day. I hope so, because I just thought of another gift I need to order.

THE HOME DEPOT’S HOMETOWN OF ATLANTA DISCUSSES THE RETAILER’S TECH EDGE

Atlanta news station 11Alive (NBC) sat down Sunday with The Home Depot’s Sr. Director of Digital Strategy & Mobile Applications, Matt Jones, about how the company uses technology to enhance in-store and online customer experiences.

Says Mr. Jones about the retailer’s mobile app, the latest strategy has been to help the customer navigate in the store while shopping. The app also gives consumers the ability to read product ratings and look up detailed product information while looking at products in the aisle, enhancing the shopping experience.

“One of the challenges is being able to visualize how the products will look in your home, “says Mr. Jones. “A door could be an example, a patio set could be an example.”  

When asked how the use of technology has impacted sales, the bottom line and overall efficiencies within the organization, Mr. Jones says the blending of the in-store and digital experiences has definitely been a driver of sales success.

Who is The Home Depot’s tech consumer? “We’ve got a very diverse customer base, from the professional customer…to the customer buying home décor…to the customer doing a DIY project at home.” This year marks the biggest wholesale change to the mobile app in years.

There are a few things Home Depot is focused on for 2017 according to Mr. Jones: giving customers a way to personalize their app and online shopping to focus on their interests. He feels that the faster you can get a consumer to the information they want and will find most valuable is the key to success.

Source: 11Alive.com 

ACCELERATED ANALYTICS CUSTOMER STONER CAR CARE STEPS ON THE GAS

Exciting customer news: Stoner Car Care unveiled their NEW Aston Martin Race Car at AAPEX 2016 earlier this month!       

 

HOME DEPOT SEES BIG GAINS IN 3RD QUARTER GOING INTO HOLIDAY SALES

The Home Depot posted one of the biggest retail jumps post-Halloween among US retailers, seeing online visits increase 17.4% and daily visits to HomeDepot.com over 20 million in the first week of November. The Home Depot is also poised to increase mobile traffic to 53% over the 2015 holiday season.

Online sales increased 17% during the third quarter and US same-store comps grew 5.9%. Significantly, over 40% of online orders placed were items picked up in the store, driving their omnichannel success.

For the first 9 months of the year, sales were $72.39 billion, up 7.2% from last year. The Home Depot attributes the growth to an increase in the number of people who made purchases in its stores and the amount of spend per customer transaction. The company expects its 2016 year to end with increases of 6.3%.

One thing to watch as the holiday season continues – last year Q4 numbers were very high due to prolonged warm weather, up 8.9% over 2014, making it harder for Home Depot to beat same store sales this year.

Sources: Internet Retailer, CNBC

Retail Value Chain Federation Annual Fall Conference Kicks Off Sunday, Nov. 6th

RVCF's Annual Fall Conference is just a few days away! We're working on dozens of last minute details and are looking forward to seeing our customers and partners as well as make new connections.

Attendees can find us in the exhibit hall at booth #30. You'll ahve the opportunity to learn more about us and what we do and will have two opportunities to win one of our grand prizes - two Merge VR Virtual Reality headsets! Entering to win is easy. Stop by the booth and spin our prize wheel to earn an entry into the drawing for the first headset. To earn an entry for the second headset, post a picture from our booth on Twitter, tag us (@AccelAnalytics) and include the hashtag #ToolstoWinatRetail.

On Tuesday, November 8th, Director of Sales and Marketing Jennifer Freyer will present our session "The SOP of POS" at 1:30 pm. Join us in Salon C,D,E to find out how retailers and vendors can FLIP the usual process of managing point of sale data around to get results. Whether you're a retailer or a vendor we'll help you understand the value of POS data and how it can help your business.

If you have questions or would like to meet with us at the conference, please click here to set up an appointment.

ACCELERATED ANALYTICS LUXURY FRAGRANCE VENDORS POISED TO GROW 5.9% BY 2026

Future Market Insights released a report today that estimates the global perfume market is estimated to reach $39.67 billion by the end of this year, and expects growth of this segment of 5.9% over the next ten years. The firm looked at several Accelerated Analytics beauty and fragrance companies for its report, including Estee Lauder Companies, LVMH, Coty Inc., L’Oreal International, Elizabeth Arden Inc., Shiseido Co. Ltd., Puig and Parlux/Perfumania Holdings Inc.

The reports found that demand is being bolstered by the millennial consumer segment, as well as increased online retail strategies from these companies. Female fragrances are leading the increase, with year-over-year increases from 4-5.2% over 2015 to 2026. While online retailing is the most attractive shopping means to this segment of consumers, in-store remains 80.5% of the market share, due to the personal and olfactory nature of fragrance marketing.

Millennials are drawn to products that have natural ingredients. Fragrance vendors are offering more “Eau Fraiche” (alcohol free) products.

The Western Europe market is the largest consumer, and expected growth consumer, of fragrance products, followed by North America.

To get more retail insights from the Accelerated Analytics team, register for our (free) monthly Retail Industry Briefing Book here.

Source: Luxury Daily

HOLIDAY SHOPPING IS HERE …..ARE CONSUMERS WAITING UNTIL AFTER ELECTION RESULTS?

The National Retail Federation (NRF) conducted a survey last week, and found that more than 25% of shoppers say the election will affect their spending.  43% of consumers also state they are being more cautious with their spending because of election uncertainty.

Retailers are seeing this effect and are making adjustments. Target and Wal-Mart are adjusting their holiday season marketing ahead of November 8.

In addition, retailers are challenged to get their marketing messages out amid all of the election noise. “Everywhere you turn — whether you’re picking up a newspaper or watching television — political advertisements are taking up ad space that retailers typically use to get holiday shopping on the minds of consumers across the country,” NRF President and CEO Matthew Shay said.

Once November 9 rolls around, the NRF predicts the holiday shopping season will kick up. The NRF is still predicting a 3.6% increase in retail spending in November and December, which would make 2016 the most successful holiday shopping season in years. This forecast is in alignment with other predictions from Deloitte, RetailNext and Kantar retail, reports CNBC. This spike is expected regardless of who wins the presidency.

Source: WSJ, NRF, CNBC

Retail Spending Gathering Momentum, Strong Holiday Rebound Expected

According to the Customer Growth Partners’ 16^th Annual Holiday Forecast, retail sales for the November-December holiday period will reach $632 billion. The record figure represents an accelerating 4.1% year-over-year increase in holiday sales and significantly exceeds 2015’s tepid 3.6% growth. 

Rising incomes and deflation in food prices, apparel and electronics are fueling the growth.

“Consumers remain cautious, shop close-to-need and focus on value — but retail spending is now gathering momentum, and is about to unleash years of pent-up demand,” said Craig Johnson, president, Consumer Growth Partners, a retail and consulting firm. “Holiday 2016 is poised to turn out better than many expect—and may well turn out to be a lot better.  After a long slow spell, retailers may finally have some real holiday cheer, to cheer about.”  

Key finding in this year’s survey include:

• Boosted by the ongoing housing recovery and led by the home improvement category, home-related categories will shine with growth of 5.7%.

• Health and beauty retailers, from drug stores to specialty stores, will pace all other merchandise categories with year-over-year growth of 7.4%.

• Accelerating from last year’s already strong pace, online and other direct-to-consumer sales will grow 13.9% year-over-year, and will comprise more than 17% of total holiday spending.

• Though outerwear sales are flat with this fall’s warm weather, apparel will see robust unit growth approaching 4%, though deflation will hold dollar sales growth to a weak 1.5%. Key fashion trends this year include bomber jackets, long sweaters and wraps, denim and footwear.  

• With sluggish mall traffic and a value proposition far less relevant to millennials than to their parents or grandparents, most department stores will struggle again this year. A 2% year-over-year decline is expected.

• After a poor year for luxury, “hard” luxury such as high-end jewelry may at least see a late-season rebound.

Source: Chain Store Age

HOME DEPOT FOCUSES ON THE ONLINE SHOPPER…BY FOCUSING ON THEIR STORES

The Home Depot has been on the great end of the rebounding housing market with a continued 4% increase in sales in the last quarter, while homeowners work on big remodeling projects like installing decks or remodeling kitchens. Without plans to add more new stores, Home Depot focuses on how to use their existing stores in new ways.

About 42% of Home Depot online shoppers order online, but pick up in the store. To accommodate that, Home Depot is allocating capital to build out store storage to hold those products. When the customer is in the store, the retailer is trying new displays that help the customer shop easier. For example, the spray-paint section is set up like a soft drink display, so as one can is selected, the next can pops into place. In the lumber and millwork flooring area, the displays are easier for the customer to shop off of on their own, and the signage has been improved.

For the increasing online sales where customers want the items shipped to their homes, Home Depot has opened 3 new fulfillment centers that can deliver orders to 90% of their customers within 2 business days. They are also looking into leveraging their store locations to use local economical transportation for buy-online, ship-to-store orders.

Source: Wall St. Journal, IHRC