BACK TO SCHOOL AND COLLEGE SALES HELP RETAIL SUMMER SLUMP

Back to School sales helped raise retail sales by .3% over the previous week and 2.5% over one year ago, following a four-week decline in June into July. Expectations are that Back to School sales will rise another 2.5% from July through September, which will be a successful repeat of the 2015 season.

Discounters and wholesale clubs were the strongest contributors to the rise in sales last week, with focus on electronics, clothing, shoes and books. Back to School season is highly promotional as retailers clear inventory for the upcoming holiday season. The National Retail Federation expects total spending to reach $75.8 billion, up from $68 billion in 2015. 60.5% of consumers plan to shop in discount stores, followed by 59.6% shopping in department stores. This rising trend over 2015 is significant, as 2015 was a drop from 2014’s splurge year by consumers in the Back to School/Back to College season.

Source: WWD.com, NRF

OMNI-CHANNEL SWITCHEROO: ONLINE RETAILERS GET PHYSICAL WHILE RETAIL STORE STALWARTS SHRINK

Amazon.com opened its first brick-and-mortar store in Seattle in November, and announced plans to open another store in San Diego. Macy’s announced it is shutting down almost 40 stores this year. Kohl’s plans to follow suit and close 18 stores, stating its online sales increased 30% in the fourth quarter, causing their reevaluation of its store footprint. Similar announcements of closing stores were also made by Sears, JC Penney and The Gap, as 8% of total US retail sales are now online.

Companies that began their retail lives online, such as Athleta, Fabletics and Birchbox are now adding brick-and-mortar stores. They are moving into prime real estate that was once reserved for top-performing retail stores, such as Birchbox opening its first store in Manhattan.

Is this the new evolution of retail, blending the two worlds? Experts say the trend will continue to grow. The impact will be different in each retail category, such as electronics versus clothing. "For most products, consumers actually prefer to shop in store because they want to see and touch what they're buying," said Dave Parro, vice president of the retail technology practice at Walker Sands, a PR marketing firm. "But they also shop online regularly because of the convenience and range of products available."

The winners of the switcheroo? The consumer. Those who are omni-shoppers know which retail channel and retailer is best to fit their needs.

Source: Philly.com, WSJ

Five Trends That Point to a New Era for Retail

In a new report titled “How We Shop Now: What’s Next?,” Westfield London has unveiled five key trends that they believe will shape the retail industry of tomorrow. Combined, the trends paint a picture of what the store of the future is likely to look like, and the report reveals that customers will be looking for richer shopping experiences and will expect physical retailers to go beyond the transaction. The five key trends identified are:

Pay as You Go Retail: People are increasingly interested in retailers adopting the “sharing economy” made popular by companies like Uber and Airbnb. The trend is strongest among Millennials, and exercise equipment, cars, consumer electronics, bikes and clothing top the list of items people want to rent.

Classroom Retail: Stores are not just for shopping anymore. Increasingly, shoppers view retail stores as classrooms where they can learn new skills and build their social networks. Examples include health and fitness sessions at the local sporting goods store and cooking classes at a home goods store.

Lifestyle Loyalty: There is a new consumer demand for loyalty programs that reward good lifestyle choices rather than just monetary transactions. As many as one fifth of UK consumers find lifestyle rewards appealing and would like to be rewarded for recycling, exercising, spending time with family, getting enough sleep and volunteering.

Enhanced Assistance: Consumers are interested in using new technologies, such as virtual reality, to bring in-store products closer to their everyday lives. 41% of people in the UK would like to use technology to experience how products would look in their homes and 33% would like to use technology to see how clothes would look on them.

Inside-out Retail: A sensory retail experience is becoming increasingly important to consumers. All five senses were deemed to enhance the shopper experience with vision and touch coming out on top.

Download the full report here.