retail news in context, analysis with attitude

The Wall Street Journal reports that "seventy percent of more than 3,000 online shoppers surveyed in February say they prefer to shop their favorite retailer online, according to a study commissioned by United Parcel Service ... Half the smartphone owners in the group and nearly 60% of the tablet owners use those devices to make purchases. Rather than fret about privacy, a majority (60% who had the technological capability), said they wanted to receive retail deals and promotions on the phones and tablets, based on their location or transaction history."

Three other passages from the story worth noting:

• "While customer satisfaction with online shopping generally was high - 83% overall - the lowest satisfaction scores had to do with factors related to shipping and delivery. Flexibility to choose a delivery date; to choose a delivery time; to reroute a package or to choose an environmentally friendly shipping option—ranked last in satisfaction when shoppers were asked to rate different aspects of the online shopping experience. Online shoppers want more choices, according to the survey."

• "Online shopping continues to outpace growth in traditional retail, the survey confirms. Last year, e-commerce grew about 15% to $186 billion, seven times the growth rate of total U.S. retail spending, according to the study."

• "Shoppers increasingly want what's called a 'seamless omnichannel experience,' meaning one in which retailers allow them to combine online and brick and mortar browsing, shopping, ordering and returning in whatever combo they would like. In fact, that is so important that 62% said they are more likely to choose to shop with a retailer that allows them to buy an item online and return it to a store ... Forty-four percent said the opposite: They are more likely to buy online if they can pick up at the store. While this saves them shipping costs, it is good for retailers; more than one-third (38%) buy extra items while in the store, according to the survey."

Now, think about these numbers and scroll down a bit and read the story about Amazon Fresh's likely expansion. And scroll down further and read about Target Canada's plans for online.

It all is an Eye-Opener.
KC's View: