• Weekly Retail Update: May 15, 2017

  • May 15, 2017
Weekly Retail Update

Macy’s and Kohl’s are Next Big Box Retailers to Take Hits

Traditional big box retailers are facing more bad news in the retail world. Dillard’s, Macy’s, and Kohl’s are among the latest to take hits in their sales, all reporting lower sales than expected in the last three months. Even with the hit, Macy’s new CEO Jeff Gennette still sees hope in their future. The store had positive sales in women’s shoes, jewelry, and furniture. But conceded that they are struggling to keep up with the intense competition of retailers like Amazon, H&M, and Zara. “We are focused on taking actions to stabilize our brick and mortar business,” Gennette said. “At the same time, we will invest to aggressively grow our digital and mobile business.” (CNN Money)

Coupons and Discounts Make Digital Ads Most Effective 

According to a new study by Alassis, “Motivating the Dynamic Shopper: Purchase Decisions In-Progress,” coupons and discounts are the top two triggers that cause consumers to respond to a digital ad. Of those surveyed, 55% said they usually don’t notice or click on relevant, targeted ads. The study surveyed three groups: parents, millennials, and Generation X. Though nearly half weren’t prone to click on relevant ads, 39% said coupons were a reason to click an ad, and 32% cited discounts as a triggering event. According to Curtis Tingle, CMO, Valassis, “This research supports the need to start with consumers, understand their behavior and deliver an integrated campaign coupled with cross-device delivery to move them along their path to purchase. Having a greater understanding of what motivates today’s dynamic shopper helps close the awareness to activation gap.” (CSA)

Target to Pilot Next Day Delivery

According to a company blog post,Target plans to pilot a next day delivery option for loyalty members. The program, called ‘Target Restock,” will enable REDcard users to visit a website where they can fill a box with household essentials and other convenience products that will be delivered the next day. This comes at a time when retailers everywhere are scrambling to compete with the ‘Amazon Effect’ that is causing consumers to demand quicker delivery times. “We created Target Restock to save busy guest time, and make it easier than ever to get household essentials delivered quickly,” the blog states. “This is another example of how Target is connecting stores and digital to create new services for guests.” (RetailDIVE)

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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.