In a recent post, I examined luxury retail in the digital age. Specifically, I discussed strategies for luxury retailers to differentiate themselves as the segment moves from brick-and-mortar to e-commerce. What’s clear is that though luxury retail tends to be viewed as a more traditional segment of the industry, e-commerce is what’s keeping it alive. As the consumer trends digitally, so do retailers.
Getting into the consumer mindset has often challenged retailers, and this has proven to be of even greater difficulty with the rise of the millennial shopper, or those aged 16 to 34. By 2025, millennials are projected to make up 44 percent of the workforce and spend a combined $10 trillion in their lifetime, and will soon be majority spenders in the retail market.
Oracle confirmed a malware attack on its MICROS point-of-sale business via its customer support portal. Hackers with ties to the Carbanak Gang, a Russian cybercrime syndicate, used malicious code to steal MICROS customer login credentials when customers accessed the support web portal.
Last week, Amazon revealed a stellar fifth straight quarter of growth. The e-commerce giant’s earnings per share increased to $1.78 from $1.07 and beat the consensus forecast by a whopping $0.64/share. According to the company, it closed Q2 earning a record-setting $857 million or $30.4 billion in total revenue and overtaking Exxon as the fourth most valuable US company.
Just this week, the National Retail Federation raised its 2016 retail sales forecast to a year-over-year increase of 3.4 percent from the previous forecast of 3.1 percent growth, influenced by expectations that consumer spending will remain solid throughout the end of the year. Additionally, the NRF expects online and other non-store sales to increase between 7 percent and 10 percent year-over-year, up from the previous forecast increase of 6 percent to 9 percent. Will this positive sentiment also bleed into the retail IPO market?
The luxury goods market is at an interesting juncture within the retail industry. The luxury sector not only faces all of the challenges the retail industry is enduring but it is also dealing with its own unique set of obstacles. Currently, the retail space is lagging in brick-and-mortar sales while the sectors’ e-commerce presence has weathered the storm. According to Walker Sands, 27 percent of consumers have purchased a luxury item online in the past year– up 17 percentage points from last year and 21 percentage points from 2014.
With the emergence of Pokémon GO, the latest craze in augmented reality (AR) has found its way into unsuspecting brick-and-mortar stores. Pokémon GO, produced jointly by Nintendo and Niantic, allows smartphone users to seek out and collect virtual Pokémon characters around real world locations – some of which reside in retail stores. And, savvy retailers are embracing the trend by offering themed deals and specials to entice game-playing customers into their stores.
Major news and groundbreaking regulatory and financial moves have been making waves in the retail industry. Here’s our take on a few of the latest headlines:
The customer-retailer relationship is a tale as old as time. But as consumer preferences evolve, so too must the in-store experience. So, how are brick-and-mortar retailers responding to changing consumer preferences and the emphasis on all things digital?
This week, summer officially kicks off. For the retail industry, summer can mean a change in the pace of business, leading to a need for adjusted seasonal staffing. With summer on retailers’ minds, what does the industry have to look forward to in the coming months?