• Weekly Retail Update: May 1, 2017

  • May 1, 2017
Weekly Retail Update

Only 61% of Customers Think Brands Understand their Needs

According to research from Talend, a provider of cloud and big data integration software, 61% of customers think that brands actually understand their needs, compared to the 88% of companies that believe their investments are helping them understand customer needs. This is a gap that costs retailers nearly $62 billion a year. The survey included 361 IT leaders and 1,094 customers in the U.S., U.K., France, and Germany. “While the majority of companies recognize the importance for data in driving company strategy, many are just scratching the surface when it comes to understanding the dramatic impact customer-360 initiatives can have on increasing their ‘share of wallet’ and inspiring lasting customer loyalty,” said Ashley Stirrup, CMO, Talend. (CSA)

Shoppers Visit Stores Before Buying Online

According the Retail Dive’s Consumer Survey, more than 55% of shoppers say they visit a store before they buy online. This number indicates that creating a seamless omnichannel experience is as critical as ever. The survey included 1,248 consumers and asked them how often they visit stores to feel, touch, and see products before they order them from a website. More so, one-third of respondents said they always visit a store to check out an item in person before buying online. Age also plays a role in the ‘see in store, buy online’ trend. A whopping 70% of consumers 65 years or older visit stores before buying online, compared to the 56% of 18-24 year old shoppers who say they buy products online without seeing them first. (RetailDIVE)

Retail Bankruptcies Hurt Under Armour in Latest Quarter

Under Armour’s North American sales saw a one percent decrease year over year, according to their latest earnings release. The company attributed the loss of nearly 300 distribution points due to bankruptcies at The Sports Authority and Sports Chalet. On top of that, MC Sports and Gander Mountain both had heavy discounts affecting their profits. While Under Armour itself had to turn to discounts to stay competitive with their customers. “Under Armour responded with more discounting, something that played a part in reducing gross margins by 70 basis points,” wrote Neil Saunders, managing director of GlobalData Retail. (MarketWatch)

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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.