• Weekly Retail Update: April 24, 2017

  • April 24, 2017
Weekly Retail Update

Another Retail Chain Closes its doors

Retail chain Bebe announces it will close all 175 stores by the end of May. The company originally said it was planning to close around 12 percent of its brick-and-mortar locations. This comes at a time where many big brands are struggling to find their place in the current retail world. The brand is apparently rethinking its structure and organization among rumors that they may to an online-only model. Other speculation exists that Bebe could be the next brand to file for Chapter 11 bankruptcy. Many experts point to growing ecommerce giant Amazon and brands focusing on millennials like H&M and Zara on pushing some of these brands out. (CNBC)

Nike and Victoria’s Secret¬†Rank High Among Millennials

According to a report from Conde Nast Inc. and Goldman Sachs Group Inc., Nike, Sephora, and Victoria’s Secret are among the top brands currying favor among millennial shoppers. The study suggests that the companies’ online presences is a huge factor in their success among the group. “These next generation consumers were born with their phones in their hands, they’re addicted to technology and expect a level of efficiency and immediacy in everything they do,” Pamela Drucker Mann, chief marketing officer of Conde Nast said. “Looking at what they’re doing is like a preview for all shoppers.” Other brands that are top of mind for this group include Coach, Kate Spade, Michael Kors, Ulta, Lululemon, DSW, and Nordstrom. (Bloomberg)

Even Millisecond Delays Online Can Cost Your Revenue

According to a report from Akamai Technologies, the¬†“State of Online Retail Performance,” even a 100-millisecond delay in loading time on websites can cut conversion rates by seven percent. The report also states that a two-second delay in loading time increases bounce rate by 103 percent. The study looks at one month’s worth of anonymous shopper data from some of the top online brands. Half of consumers use their smartphones to browse for products, but only one in five actually complete a purchase on their smartphone due to poor website performance. “Results form our State of Online Retail Performance report have shown that user experience is critical to e-commerce success, and things aren’t getting any easier,” said Ash Kulkarni, senior VP and general manager, Web experience division, Akamai. “Customers have extremely short attention spans, and degradations in website performance – no matter how small – can cause consumers to go elsewhere in an instant.” (CSA)

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About Holly Pels

Holly Pels is the Content Strategy Manager at RICS. When she isn't planning out the awesome content you see on the RICS site, you can find her playing soccer, baking, or drinking champagne.