News

Study: Outdated technology holding back retailers

BY Marianne Wilson

MIAMI — Yesterday’s POS won’t cut it when it comes to providing a consistent experience across channels.
 
That’s among the findings of a study sponsored by NetSuite and conducted by RSR research, which finds that most retailers are falling short in bridging the online and in-store experience Among the main obstacles: outdated existing technology.
 
The report finds that retailers are struggling to unify their online and in-store experiences, with existing technology/infrastructure preventing them from moving forward with new omnichannel solutions. Indeed, 77% of the surveyed retailers believe their legacy point-of-sale (POS) is preventing them from providing a consistent customer experience across channels. What’s more, retailers said they face significant challenges getting new technologies rolled out to stores and in helping employees respond to informed, smartphone-enabled shoppers.
 
Key findings include:
  • 95% of retailers agree that the store and the digital experience must be brought together for a continuous, seamless experience;
  • 78% report getting new technologies rolled out to stores is a top challenge;
  • 94% of retailers say inventory insight across all channels is important; and
  • 95% of retailers say real-time visibility into customer activity across all channels is important.
Too many retailers still treat the in-store experience as completely separate from the online experience which frustrates customers and prevents retailers from capitalizing on opportunities for cross-sell, upsell and improved customer loyalty, according to the study.
 
"When it comes to how to support the convergence of digital and the full shopping journey, retailers are stuck – waiting for something better to come along than the disparate systems they have," said Steve Rowan, managing partner of RSR Research and an author of the report. "The reality is there are options out there, but even better-performing retailers are cautious in approaching them, fearing both the cost and the pain of making the change."
 
The study was sponsored by NetSuite, whose single cloud commerce platform SuiteCommerce InStore is the first system that integrates comprehensive omnichannel capabilities into an enterprise-class, mobile-first, POS solution that seamlessly unifies the online and in-store customer journey, according to the company.
 
The solution also provides visibility into inventory anywhere in the business, enabling the ability to combine different fulfillment models such as cash-and-carry and ship-to-home in a single transaction.
 
To download a complimentary benchmark report from RSR Research and NetSuite, click here.
keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Amazon adds, expands Prime Now markets in time for holidays

BY Marianne Wilson

SEATTLE — It’s not like the holidays weren’t going to be challenging enough, but now Amazon.com is expanding its free same-day delivery service to more markets.

Amazon.com said it expanded it Prime free same-day delivery to Chicago and Orlando and new locations in the greater New York, northern New Jersey and Philadelphia area. The service, which requires an annual $99 Prime membership fee, is now available in 750 cities in 16 metropolitan areas. It launched it May.

That is not good news for operators of physical stores, many of who are still looking to optimize their omnichannel strategies and fine-tune promotional strategies designed to generate traffic to stores. Meanwhile, Amazon.com is raising the bar on shoppers’ expectations by telling customers they can order from an assortment of more than one million items as late as noon and receive same day orders over $35 before bed time, seven days a week.

“We’re focused on making Prime better and better and every day members discover how Prime Free Same-Day Delivery can make their lives easier,” said Greg Greeley, vice president of Amazon Prime.

In addition to the markets mentioned above, the free same-day delivery is available in Atlanta, Baltimore, Boston, Dallas-Ft Worth, Indianapolis, the Greater Los Angeles area, Phoenix, San Diego, the San Francisco Bay area including Oakland and San Jose, Seattle-Tacoma, the Tampa Bay area and Washington, D.C.

In the new Chicago market, coverage extends from downtown north to Evanston and Arlington Heights, west to Glen Ellyn and Downers Grove, and south to Oak Lawn. Coverage in Orlando extends north to Sanford and Deltona, south to Kissimmee, as well as eastern and western suburbs such as Clermont, Winter Garden and Winter Park. New coverage also includes additional areas in Brooklyn and Queens in New York City, Northern New Jersey stretching from Newark to Paterson and beyond, and additional locations in the downtown area of Philadelphia.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Supervalu announces Q2 results

BY David Salazar

MINNEAPOLIS — Supervalu on Wednesday announced its earnings for Q2 of FY2016. The company’s net sales were $4.06 billion, up only slightly (0.5%) from $4.04 billion in the same quarter last year.

Despite slight trouble in its different segments, Supervalu’s gross profit was 14.4% of its net sales ($583 million), a slight increase over its 14.2% profit in the same quarter last year. The company attributes this increase to higher margins in each segment, lower logistical costs and fees earned under transition service agreements.

The company saw a 1.6% decrease in same-store sales among Save-A-Lot stores and its same-store sales, though corporate Save-A-Lot stores saw a 0.9% increase in same-store sales. Despite the drop in same-store sales, net sales for Save-A-Lot rose 3.2% as the result of new store openings.

In the Independent Business segment, net sales were $1.83 billion, a slight decrease from last year’s $1.84 billion, which the company attributes to lower sales and lost stores. Operating earnings in the Independent Business segment were $2.7 percent of net sales ($49 million), a decline over last year that the company attributed to employee costs from new businesses.

The company’s Retail Food segment dropped 3.3% in same-store sales and fell 1.2% in net sales. Earnings were 0.9% of sales ($10 million) — about half of the net sales in the same quarter last year. High employee-related costs and higher shrink expenses are the cause, according to Supervalu.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?