Retail Traffic Trends #60: Q4 in the books

Despite having 20% less foot traffic than Q4 2020, both the furniture and mattress industries ended the year with increases in both average ticket and daily revenue.

As we start the new year, this week we dive deep into Q4 2021 and see how each industry performed during the holiday season.

DON’T FORGET: Doorcounts weekly webinars start today at 12 pm EST.  Join the Doorcounts team and learn best practices to make the most out of your time.

THIS WEEK’S HIGHLIGHTS

  • DOORCOUNTS WEBINAR TODAY: Join us today at 12 pm EST for our first weekly webinar. CLICK HERE TO JOIN WEBINAR
  • Q4 in the furniture industry: The highs and lows for the furniture industry in Q4.
  • Q4 in the mattress industry: How the mattress industry increased daily revenue by 30%.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

Week 01 Retail Foot traffic 2022

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Q4 Furniture industry

Q4 2021 furniture industry performance metrics

Q4 Mattress industry

Q4 2021 mattress industry performance metrics

Retail Snippets

Responsibility: Why corporate social responsibility matters to your business.

Must-see trends: 10 retail trends to keep an eye on in 2022.

Robot stores: Chinese e-commerce giant JD.com sets challenge to Amazon with the first ‘robotic shops’ in Europe.

Beyond the Hype: 6 defining factors for a successful business.

RANDOM IRRELEVANCE

Beyond Meat: KFC to launch plant-based fried chicken made with Beyond Meat nationwide.

Diamond rain: ‘Diamond rain‘ on Uranus and Neptune seems likely.

A small world: Chemists use DNA to build the world’s tiniest antenna.

Read More

Retail Traffic Trends #59: Overlooked and Overhyped

Happy New Year from the Doorcounts team! We hope you all start the new year off on the right foot and have a fantastic year.

2021 was filled with new trends, shopping habits, and new ways for consumers to pay for their goods.

From overhyped and overlooked trends of 2021, this week we look forward and see what trends we expect to take over in 2022.

THIS WEEK’S HIGHLIGHTS

  • Future trends: What analytics expect to see in the retail industry going forward.
  • Overhyped and overlooked: What retailers viewed as the most overhyped and overlooked trends of the year.
  • 2021 store openings: How 2021 ended the year with more physical store openings than closures.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

2022 trends

As we start the new year, it’s time to take a moment to see which trends will be influential for retailers in 2022.

Even with e-commerce nearing $1 trillion in 2021, nearly 84% of sales came from physical stores in 2021. Analysts expect 2022 to be no different, with a majority of sales coming from physical stores.

As physical stores continue to adapt to new technologies that make it easier for customers to cross the buying line, consumers will become even more likely to buy in person.

As we’ve talked about in the past, bridging the gap between online shopping and in-store experiences will continue to drive sales in 2022. Especially, because it has almost become second nature for shoppers to browse their options online before entering physical  stores. 

Click HERE to learn more about trends we expect to see in 2022.

Retailers analyze the most overlooked and overhyped retail trends of 2021

In a recent survey by Morning Brew, retailers across the country explained what they believe were the most overlooked and overhyped trends of 2021.

Coming in at the most overhyped was NFT’s. Although the blockchain-backed tokens received much media coverage in 2021, a majority of respondents say they do not own any and have never considered buying.

When it comes to overlooked trends, a majority of Morning Brew readers say that Buy Now Pay Later was greatly overlooked. For readers of Retail Traffic Trends, you would probably say it is overhyped as we have talked about it many times throughout the year. 

Buy Now Pay Later shopping accounted for over $226 billion in 2021, with nearly 30% of college students already taking interest in the offering.

Click HERE to learn more about what other retailers thought were the most overhyped and overlooked trends of 2021.

Store openings outpacing store closures in 2021

After nearly 2 years of social distancing measures and stay-at-home orders, major retailers reported 5,083 store openings compared to 5,079 store closures in 2021.

As we explained above, despite stay-at-home orders forcing the hands of many consumers to shop online, physical stores have proven their resilience in 2021.

Physical stores play a major role in ramping up sales, whether the sales are online or in-store.  A recent report found that when retailers close down a brick-and-mortar store, online sales plummet by nearly 50% on average.

Stores like eyewear retailer Warby Parker who previously only sold online, saw an increase in online sales after they opened physical stores.  As we’ve learned, the presence of a store has immense value.

Retail Snippets

Holiday 2021: Holiday season retail sales eclipse previous years.

Returns: Retailers surrender to unprecedented costs on online returns.

Small Stores, Big Changes: Small businesses expected to go more digital in 2022.

Fraud protection: Does customer age matter for fraud prevention?

RANDOM IRRELEVANCE

Best of 2021: The 10 best-reviewed films released in 2021.

Word of the year: Dictionary.com’s 2021 Word Of The Year Is …

Meteor showers, eclipses, full moons: All of the reasons to look up in 2022.

Read More

Retail Traffic Trends #58: Turn returns into returning customers

Despite predictions from analysts, holiday sales rose 8.5% from November 1st to December 24th, with a majority of sales coming from physical stores.

Of the online sales, nearly 20-30% are expected to be returned before the end of the year.

This week we dive into how to make returns profitable and turn returns into returning customers.

THIS WEEK’S HIGHLIGHTS

  • Holiday sales: A breakdown of online vs physical sales this holiday season.
  • Making returns profitable: How returns turn into return customers.
  • Furniture and the metaverse: How the metaverse could help furniture retailers show off their product.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Holiday sales rise 9%

According to data from Mastercard, holiday sales rose 8.5% from November 1st to December 24th.

U.S e-commerce sales rose 11% in the same time frame, with physical stores seeing an 8.1% increase compared to the same time last year

E-commerce accounted for 20.9% of all retail sales this year. With a majority of consumers concerned over shipping delays this year, many shoppers opted to buy online well in advance of the holidays.

Despite the predictions made by experts leading up to the holidays, sales during the holiday season blew past the expectations of many analysts.

Designing returns to be a strategy for growth

As we just learned, online sales accounted for 20.9% of all retail sales in 2021 and saw a growth of over 44% in 2020. But with more online sales comes more returns.

Nearly 20 to 30% of online sales are returned. Although online sales are not as prominent for big-ticket retailers, making returns a seamless process can be profitable for both e-commerce and brick-and-mortar retailers.

A former head at a big box retailer said “Customers who had a great seamless return experience would drive more sales than a customer who never had to return a product.” Essentially, returns can increase sales.

Personally, if I ever have a good return experience it does make me feel more comfortable shopping at that place again without the fear of buying something I can’t return.

The article goes on to explain that to enable growth, returns processes need to meet three targets: enhanced cost optimization, customer experience, and revenue preservation.

Click HERE to read the full article.

The metaverse and furniture industry

The technologies that make up the metaverse can include virtual reality—characterized by persistent virtual worlds that continue to exist even when you’re not playing—as well as augmented reality that combines aspects of the digital and physical worlds.

While it may sound a little outlandish, the metaverse could change how big-box retailers showcase their products. Some retailers have already started experimenting with digital showrooms, and the idea of the metaverse will only make digital showrooms more prominent.

Despite not being able to physically touch the furniture or test a mattress, using augmented reality, shoppers can see how the product will look in their own home and even see if it will fit in their space without measuring.

Click HERE to learn more about the possibilities of augmented reality in the furniture industry.

Retail Snippets

2021 In Review: A year for breakthrough ideas and commerce experiences.

Overlooked trends: The most overlooked retail trends of 2021.

First Look: Würth opens the first 24/7 store in Canada.

Boxing Day: UK retail foot traffic down 45% from 2019 Boxing Day.

RANDOM IRRELEVANCE

Jurassic Park: A perfectly preserved dinosaur embryo was preparing to hatch like a bird.

The Matrix: The robot workforce isn’t coming. It’s already here.

Spider-Man:  ‘No Way Home’ becomes the first pandemic-era movie to smash the  $1 billion milestone globally.

Read More

Retail Traffic Trends #57: 2022 trends to watch

As the Internet of Things and new technologies are becoming more widely adopted by consumers, 2022 could force the hand of many retailers to adopt the technologies in their stores.

With analysts expecting only a 5% increase in projected sales for 2022 after reaching nearly 30% this year, reducing any friction at checkout or during the customer journey will be essential in 2022.

This week we dive into predictions for retail in 2022 and the top trends we expect to see in the next year.

THIS WEEK’S HIGHLIGHTS

  • Sales forecasting: What can we expect from shoppers in 2022?
  • Physical stores: The strive for efficiency and personalization
  • The internet of things: How increased adoption has changed how people experience retail.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Retail: 2022 predictions

Predicting the future of retail has proven to be a nearly impossible task with the retail environment and trends changing every week.

Moody’s Analytics, which provides financial intelligence and analytical tools for a variety of different industries, predicts that 2022 will be a year of growth for the retail industry.

For 2022, Moodys predicts that operating income will increase by 5% year-over-year. Although 5% isn’t much, it would be quite the achievement considering that 2021 is closing in on 30% growth compared to 2020.

This year, we’ve already seen nearly 10% growth in projected sales growth, with 2022 expected to see another 5% improvement.

Even with e-commerce and online sales expected to continue gaining popularity, curbside pickup and BOPIS have proven to give people the best of both worlds.

Brick and Mortar: the strive for efficiency

As getting shoppers into your store has become increasingly difficult with online stores finding a way to compete in large-ticket industries such as furniture and mattress, stores are constantly searching for ways to personalize the shopping experience that consumers can’t find online.

As we touched on last week, scheduled shopping experiences are a new trend that many retailers are picking up on. By scheduling a shopping trip with a consumer, customers feel a level of personalization and are more likely to buy.

Some companies are taking personalization to the next level by opening smaller stores specifically to enhance the customer experience. Not only does a smaller store help retailers be able to compete with the prices of e-commerce with lower rents, but it allows you to find a location closer to customers.

Ikea recently announced they are opening “planning studios” as a way to have stores closer to consumers and give them the option to sit down with a designer and plan out their living space.

Going forward, personalization will be the name of the game to keep physical stores competitive.

Must-watch trends

As the internet of things continues to become cheaper and more widely adopted by consumers of all ages, it has become increasingly important for stores to adapt to new technologies that make it easier for shoppers to cross the buying line.

The Internet of things describes physical objects that are embedded with sensors, processing ability, software, and other technologies that connect and exchange data with other devices and systems over the Internet or other communications networks.

This includes having an up-to-date checkout process, such as having touch-less checkout and allowing for payment methods such as Apple Pay. When in doubt, give customers every option possible to avoid friction. Even my dad uses his Apple watch to pay for nearly everything these days, and he is far from a tech-guru.

As we’ve continued to see, online research before entering a store is a common practice for many shoppers. Not only is it a common practice, but consumers have come to expect online inventory to match what the inventory is in-store. While that continues to be important, it’s evident that it is easier said than done.

Lastly, data privacy has become very appealing to many shoppers. People want to know what data is collected, and what you are going to do with it. Being clear on your data privacy guidelines will help gain trust and peace of mind for customers.

Retail Snippets

Return season: Consumers could return $66.7B in holiday merchandise this year.

Relational economy: Why emotional customer connections are the new foundation.

A year of sales: A look into the monthly retail sales from the US Commerce Department.

Shopping outlook: Omnichannel, the metaverse, and creativity in marketing.

RANDOM IRRELEVANCE

A first: Humans just ‘touched’ the sun for the first time using a spacecraft.

The Matrix: Scientists force human brain cells into a Matrix-like simulation.

Watch:  12-year-old Charlie Woods’ back-to-back solo birdies at PNC Championship.

Read More

Retail Traffic Trends #56: What concerns your shoppers?

No matter how much shopping behaviors have changed over the years, one thing that hasn’t changed is the concern consumers have about delays during the holiday season.

No customer wants to be left in the dark when it comes to delays or really anything related to their purchases.

This week we take a look into the minds of consumers to see what they are thinking and what their biggest concerns are this holiday season.

THIS WEEK’S HIGHLIGHTS

  • Future shopping trends: What can we expect from shoppers in 2022?
  • Consumers’ biggest fears: How honesty and transparency can help get consumers over the buying line.
  • Buy nothing revolution: How a Facebook group is giving away goods for free to all.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

What’s on consumers’ minds?

On Intercom’s recent Holiday Shopping Experience Report, they surveyed consumers to see what their biggest concerns and feelings are when it comes to holiday shopping this year.

Of the 1000 people surveyed, Seventy-seven percent of respondents said they were concerned about having problems while shopping online this year. Despite the rise in e-commerce this year, it’s clear that people still have their doubts about online shopping.

Some of the top concerns of online shoppers were mostly related to shipping and delays. 45% of people are concerned their packages won’t arrive on time, 33% are concerned the items they want won’t be available, and 42% believe the price will be more expensive than anticipated.

In regards to shipping delays, nearly 95% of consumers say they expect companies to reach out about shipping delays before they have to ask. As I think we all can relate, being in the dark about when your package will come is not the best feeling.

What’s clear from the report is that keeping customers in the loop before they have to ask, whether it be about availability or shipping, will help eliminate a majority of their concerns and help get them across the buying line.

Future shopping trends

As we are sure you have all noticed, shopping trends have continued to shift and turn in different directions throughout the last year.

In a recent report by WBR Insights, they surveyed 100 leaders from B2C retail brand manufacturers and multi-brand retailers to get insights on how consumers are shopping now, and how that will change in the future.

The report found that 46% of retailers believe consumers are doing research online before shopping, unlike in the past where consumers would browse different stores as their form of research. While consumers still want the instant satisfaction of shopping in person, it is essential to keep your website up-to-date for consumers to do adequate research.

As personalized shopping experiences continue to be expected by consumers, scheduled shopping arrangements have become a popular way to give customers a special experience. About half (48%) of people claim that customers will most likely shop in their physical stores this year via pre-arranged appointments, with 66% of retailers reporting that they plan to use appointment scheduling to manage their in-store customer experiences. 

“Buy nothing” revolution

As inflation and the prices of goods continue to go up, consumers are searching for new ways to get the goods they want at a reasonable price – and now they have found a way to get products at zero cost.

The Buy Nothing revolution is a Facebook group with over 4.3 million members in 44 countries. The group exchanges goods they no longer need for free, with the motto of “what goes around, comes around”. Essentially, people give away their items for free knowing that others will do the same for them.

People are exchanging everything from furniture, to baby clothes, to appliances, and everything in-between.  Members can request or offer any item or service as long as it’s legal; although buying, selling and bartering are prohibited.

Although the idea is to help those who cannot afford to buy something new, it is also a way to emphasize zero waste and to give new life to goods that others no longer need.

Retail Snippets

November prices: Online price hikes hit a record high in November.

RFID Tech Guide: Tips for hardening supply chains, streamlining the last mile, and enabling BOPIS and curbside pickup.

Millennials pay up: Gen-Zers relied on buy now, pay later during the holidays. It’s time to pay up.

Shopping center outlook: Why open-air, mixed-use, and tech-first locations are gaining popularity.

RANDOM IRRELEVANCE

Color of the year: Pantone announces their color of the year for 2022.

World champion: Max Verstappen of Red Bull wins the F1 world championship and breaks Mercedes 7 year winning streak.

Doomsday Glacier:  Antarctica’s ‘Doomsday Glacier‘ could meet its doom within 3 years.

Read More

Retail Traffic Trends #55: November by the metrics

November data is in, and the numbers will not disappoint.

Compared to November 2020, the furniture, mattress, and footwear industry saw significant increases in nearly every performance metric.

Despite an overall drop in foot traffic, salespeople have turned a month of lackluster foot traffic into one of the most impressive months of sales thus far.

THIS WEEK’S HIGHLIGHTS

  • Mattress and furniture industry: The importance of spending an extra 3 minutes with customers.
  • Footwear industry: The biggest increase in average ticket we’ve seen thus far.
  • Cyber Monday: Sales edge down to $10.7B as consumers make a dent in their holiday shopping.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

The furniture industry takes November by storm

In November, the furniture industry overcame lower foot traffic than November 2020 and increased nearly every metric.

Compared to November 2020, foot traffic was down 20% from an average of 27 customers last year to 22 this year. Compared to last month, foot traffic stayed consistent with an average of 22 opportunities in both October and November 2021.

With Black Friday and the holiday season resulting in people shopping with more intent rather than browsing, the conversion rate increased 19% year-over-year and increased 6% compared to October 2021. 

In addition to an increase in conversion, those people who did buy ended up spending more on average than they have in years past.  The average ticket in the furniture industry increased from $2,078 in November 2020 to $2,417 in 2021, a 16% increase. The increase in both conversion rate and average ticket resulted in daily revenue seeing a 4% increase year-over-year.

When it came to spending an adequate amount of time with customers, salespeople in the furniture industry spent an average of 3 extra minutes with each customer.

Mattress sales in November

Similar to the furniture industry, every metric was in the green in November, except for foot traffic. Foot traffic in the mattress industry was down 7% compared to November 2020, but up 22% compared to October 2021. 

The biggest improvement since November 2020 was daily revenue increasing a staggering 40% from $2,685 in 2020 to $3,753.71 in 2021. This increase is in part due to a significant increase in both conversion rate and average ticket.

In November 2020, salespeople in the mattress industry converted 59% of their opportunities into sales. This November, that number increased to 71.5%. That level of increase alone would be enough to increase daily revenue, but with the additional increase in average ticket, we start to see where the magic happened.

Average ticket increased by 20.29% from $1,633 in November 2020, to $1,965.00 in November 2021. In comparison to the previous month, October 2021, which had an average ticket of $1,815.80, the average ticket increased 8.22%.

As we have seen in previous months, salespeople have found a way to make the most out of fewer opportunities and turn a lackluster month of foot traffic into a month of positive metrics.

November in the footwear industry

While we always give commentary on foot traffic for the footwear industry, this month is the first month we dive deep into the performance metrics of the footwear industry.

Despite other industries seeing lower foot traffic than the same time last year, the footwear industry saw average foot traffic of 5 customers a day, a 34.83% increase compared to November 2020. This increase may be a result of footwear being more in-line with holiday gifts than the other industries.

The biggest increase of all the industries comes from daily revenue in the footwear industry increasing 67.58% year-over-year from $1,157 in November 2020 to $1,938.30 in November 2021. 

Although daily revenue saw a major increase, the increase did not come from converting more sales, but instead by significantly increasing the average ticket. The conversion rate dropped -0.51% year-over-year and by -4.69% compared to October 2021. 

The average ticket went from $496 in November 2020, to $589.91 in November 2021. While $589 seems quite high for the footwear industry, a majority of Doorcounts footwear customers are in the specialty shoe and arch support business where their customers buy much more than a regular pair of shoes.

Overall, November was an impressive month for the footwear industry with the most significant increases compared to other industries.

Retail Snippets

Cyber Monday: Sales edge down to $10.7B as consumers make a dent in their holiday shopping.

Holiday sales: Sales on track to blow past record for spending, topping retail trade group’s biggest forecast.

Truth in the data: A look into physical retail’s data distortion trap.

Pay on your own time: Buy now, pay later orders up 34% this holiday.

RANDOM IRRELEVANCE

Banksy: Can pop-up Banksy and Van Gogh shows save retail?

Living the dream: Ever wanted to spend the night in Ikea? In Denmark, a snowstorm means people sleep overnight in an IKEA.

Watch:  Here’s what the only total solar eclipse of 2021 was like from a cruise ship near Antarctica.

Read More

Retail Traffic Trends #54: Black Friday by the metrics

No one knew what to expect this Black Friday, but the data shows that shoppers came in flocks with their checkbooks ready.

Compared to 2020, both the furniture and mattress industries saw an average ticket increase of over 10%, with daily revenue also seeing a notable increase.

This week we take a look at Black Friday metrics and see how shopping trends have evolved since the beginning of the pandemic.

THIS WEEK’S HIGHLIGHTS

  • Black Friday by the metrics: What can be learned from the changing shopping trends.
  • Holiday marketing: Why catalogs are still winning holiday marketing.
  • Foot traffic analysis: How has foot traffic changed on Black Friday over the past 3 years?

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Black Friday foot traffic

While we can always expect an increase in traffic on Black Friday, the last few years have proven it’s harder than usual to predict how much traffic will truly increase.

On average across all the industries, foot traffic was only down 2.69% since 2019, before the pandemic had started.  All things considered, we would consider that pretty impressive.

For the mattress and footwear industries, they saw an increase in foot traffic compared to pre-pandemic numbers. Compared to last year, every industry saw an increase in foot traffic.

The star of foot traffic this year was the footwear industry, which saw a 37% increase compared to 2109, and a 67% increase compared to 2020.

Overall, we are starting to see old shopping behaviors come back into fruition.

Black Friday in the furniture industry

Despite the furniture industry seeing a 15% drop in foot traffic in relation to Black Friday before the pandemic in 2019, key performance metrics saw a major boost in performance.

Daily revenue was up 6% over last year, which was up 11% over 2019. An increase like this would usually point to an increase in conversion rate, but this year the increase was mostly in part due to the average ticket seeing a substantial increase.

Although we’ve seen fewer opportunities convert into sales over the last two years, those who do convert are spending more than they did in previous years.

In 2020, the average ticket was up 44% year-over-year, and this year it increased by 15%.

Mattress industry sees Black Friday gains

Similar to the furniture industry, the mattress industry saw an increase in nearly every metric except conversion rate.

The furniture industry had a daily revenue of $10,404, a 6% increase over Black Friday 2020, and a 16% increase over 2019.

Average ticket in 2019 was $1,635.48, which decreased by 2.30% to $1,597.90 in 2020, then increased by 13% in 2021 to $1,811. As it turns out, the less consistently people shop, the more they spend when they do make their way to a store.

Although a conversion rate of 79% is almost 10% higher than the yearly average for the mattress industry, it is not at the same level we usually see on Black Friday for the furniture industry.

All in all, this year’s Black Friday gives the retail industry a glimmer of hope for what is to come for the rest of the holiday season.

Retail Snippets

Holiday marketing: Why catalogs are still winning holiday marketing.

The grinch: Organized retail thefts continue over Thanksgiving weekend.

Resale retailers Why shoppers are buying from resale retailers more than ever.

Customer-first: Top five trends retailers need to embrace in 2022 to transform into shopper-first organizations.

RANDOM IRRELEVANCE

Syrup shortage: Facing major shortages, Canada taps its strategic reserves of maple syrup.

Unearthed Archaeologists unearth mummy in Peru estimated to be over 800 years old.

Virgil Abloh:  The path-blazing designer dies from cancer at 41.

Read More

Retail Traffic Trends #53: Thanksgiving weekend predictions

From everyone on the DC team, we want to wish you a happy early Thanksgiving and the best of luck for a successful sales weekend. Although many Thanksgiving shoppers have already begun snagging Black Friday deals as they come, the tradition of shopping over Thanksgiving day and through the weekend is still alive and well in many consumers.

This week we look at predictions and analyses of what shopping trends to expect over Thanksgiving weekend.

THIS WEEK’S HIGHLIGHTS

  • Thanksgiving week predictions: What lies ahead?
  • Independent retailers: How independent retailers are boycotting Black Friday.
  • The Fam: Mega-Importers like Walmart and Target pay less for containers.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

This week in data

Earlier this week, ICSC released their Thanksgiving weekend Intentions Survey. It detailed how consumers plan to tackle their Thanksgiving week shopping.

The survey expects that Thanksgiving shoppers will spend $491 on average between Thanksgiving and Cyber Monday. That’s a total of over $108 billion for the weekend. 49% of consumers plan at shopping at brick-and-mortar stores on Thanksgiving. 36% of Thanksgiving shoppers will decide where they shop based on discounts rather than brand loyalty.

For those who work in malls, the survey suggests that 59% of consumers will go there to shop, 47% will eat at a restaurant,  and 24% will see a movie.

In regards to Black Friday specifically, 73% of shoppers plan to shop in-store or online depending on where the deals take them. Even with sales being spread out over the past month, the tradition of shopping in-store with your friends and loved ones over Thanksgiving weekend is still not going away any time soon.

Independent retailers boycott Black Friday

This year, 85% of independent retailers plan on boycotting Black Friday by closing their website and donating a portion of sales to non-profits.

The boycott is in part because small independent retailers are not able to compete with the deals that large retailers can offer.  Small businesses tend to keep their prices fair all year round and therefore can’t afford to discount heavily just before the busiest time of the year.

 On Facebook, a group called “Not on Amazon” was started last November and now has more than 157,000 members. The group is a place where owners of independent creative and artisan businesses can freely advertise the products they have made to others in the group.

The Fam

No Easy Fix: Mega-Importers Like Walmart and Target Pay Less for Containers

If there’s one thing almost everyone in the furniture industry is talking about these days, it’s container prices. 

While the average price for a 40-foot container in the home furnishings industry ranges between $4,000-$5,000, they’ve skyrocketed over the last year and a half to $20,000 or higher.

While larger importers like Wal-Mart and Home Depot are still paying fairly low prices for containers—according to Jason Miller, associate professor of supply chain management at Michigan State’s Eli Broad College of Business, smaller businesses like those in the home furnishings industry are taking the brunt of the blow.

Read the full article HERE and learn more about when we might see the price return to normal.

NOTEWORTHY NEWS

October sales: Retail sales rise faster than expected in October.

Report: 30% of Online customer reviews in 2020 are deemed fake.

A new home: Has the pandemic changed living patterns and home design?

Data privacy: Big box retailers sell shoppers’ data for online ads.

RANDOM IRRELEVANCE

Planetary defense?: NASA’s Dart spacecraft will crash into an asteroid in the first planetary defense test.

Must see: Hilarious winners of this year’s Comedy Wildlife Photography Awards.

Rare sightings: The ‘rarest mammal in North America‘ wanders into Colorado garage.

Read More

Retail Traffic Trends #52: E-commerce – from threat to complement

This year we celebrate one year of reporting on retail traffic trends!

While we once considered e-commerce and your online stores to take away from your foot traffic, this year has shown us that your online presence can be a major complement to your physical store.

By keeping updated inventory levels of your physical store online, customers can fast-track their visit to your store by finding options that give them the instant satisfaction of buying in-store that we all know and love.

THIS WEEK’S HIGHLIGHTS

  • Foot traffic: What lies ahead?
  • No-code: How to get your online store to compliment your physical stores.
  • The Fam: Why You Should Carry Sleep Noise Machines In Your Store.

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

What lies ahead?

Last week, payment provider Square released its annual report on consumer trends and analysis on how people are navigating through retail in 2021.

Although Amazon has taken a major hold on retail, local brick-and-mortar stores still hold a special place in consumers’ hearts. As explained by David Rusenko, Head of eCommerce at Square, “Local shops offer many advantages over the warehouse approach of retail giants, like Amazon and Argos. Being physically close to their customers creates opportunities to shine, by understanding their wants and needs, and offering faster access to high quality selection of products” 

Despite people still finding their way into physical stores, Square’s report highlights that 97% of consumers now make monthly retail purchases online. While shopping on social platforms was seen as an experiment that wouldn’t last, now we are seeing a shocking 73% of consumers buying from social platforms at least once a month.

As I think everyone can agree with, there is a sense of joy that comes from shopping in person that cannot be matched with online shopping.  The instant satisfaction of getting your product is something that will never go away. And because of that, nearly 50% of retailers now offer next-day delivery.

Going forward, analysts are expecting online shopping to go hand and hand with physical stores as a complement to them as opposed to replacing them.

The power of no-code

As we continue to see online shopping as a complement to physical stores rather than a threat, keeping your online presence as pristine as possible is still a major benefit for your physical stores.

A common beginning for the customer journey has been for consumers to go online and check what is in stock in-store, then go shopping in-person to make the purchase and get the instant satisfaction of going home with the goods.

And with that, inventory management and ensuring your inventory online accurately reflect the products available in-store continues to be of major importance. 

While keeping your online store and physical stores in-sync sounds easier said than done, the advancement of no-code solutions has made it easier than ever to create a seamless customer journey. 

The Fam

Why You Should Carry Sleep Noise Machines In Your Store

Last week on The Fam, they discussed how selling mattresses are all about selling a better night’s sleep, rather than selling the features of the mattress.

This week, they take the importance of sleep one step forward by explaining how a good night’s sleep comes from much more than a mattress.

Noise affects the stages of sleep. While noises actually increase stage 1 sleep they decrease slow-wave and REM sleep—which are arguably the most important stages.

Read the full article HERE on how to help your customers have the best sleep of their life.

NOTEWORTHY NEWS

Thrive and survive: How adaptive retailers survived and thrived during the pandemic.

Manufacturing: Tempur Sealy ramps up US manufacturing capacity to reduce supply chain exposure

Holiday fun: Is the fun ever coming back to holiday shopping?

Tech takeover: How you can harness tech to meet consumers anywhere.

RANDOM IRRELEVANCE

World record: 105-year-old Louisiana woman sets world record in 100-meter dash.

Lost in space: Ferris wheel-size asteroid could be a lost piece of the moon.

Rare sightings: The ‘rarest mammal in North America‘ wanders into Colorado garage.

Stranger Things: After a long wait ‘Stranger Things’ announces season 4 release date.

Read More

Retail Traffic Trends #51: Sales team motivation

What is the key to sales team motivation when the biggest sales event of the year has transitioned from a sprint to a marathon?

With Black Friday becoming a month-long sales event rather than a day of door-buster deals, it’s difficult to keep your salespeople on their A-game when customers can come in any day of the month expecting to get big deals.

This week we discuss how using leading metrics and the Goaling Report can help keep your sales team motivated and engaged throughout the holiday season.

THIS WEEK’S HIGHLIGHTS

  • Black Friday: The transition from a sprint to a marathon.
  • Coaching: How to keep your sales team motivated using leading metrics.
  • The Fam: to be added

FOOT TRAFFIC INDEX

Here’s a look at last week’s foot traffic compared to the same time last year.

CLICK HERE to subscribe to Daily Foot Traffic Index

FOOT TRAFFIC TRENDS

Industry insights so you can convert your foot traffic into more sales.

Is Black Friday a thing of the past?

Black Friday has made the shift from a sprint, to a marathon. Waiting until Black Friday to offer deals or to do shopping of your own is quickly becoming the old way to do things.

With the combination of supply difficulties, worker shortages, and the ever-changing trends of shoppers, Black Friday is no longer symbolic of a day of crazy sales, but instead a month-long sales event.

In 2020, Black Friday sales began as early as October and did not end until early December. On average, prices were reduced by 48% for retailers in the US as many retailers had a surplus of inventory that needed to go, in contrast to 2021 where inventory has become scarce.

In 2021, the overarching message is to shop early to avoid disappointment. Thankfully for retailers, who can feel pressured to give big deals, most companies have reduced their discounts to the 5-25% range this year as supply chain issues make it increasingly hard to offer door-buster deals.

Despite the challenges, shoppers are still eager to get out of the house and start hunting for deals in person.

Sales team motivation

When you have stores that are prone to lower foot traffic than other stores due to their location or a variety of reasons, it’s difficult to directly compare their results to a store that has high traffic.

Keeping your salespeople motivated regardless of their day-end results requires finding small wins or positive behaviors that lead to desired results.

As a sales manager, John focuses on sales team motivation by looking at leading metrics, not trailing metrics. By using combined productivity rates with the data from Doorcounts, John can measure the productivity of their salespeople regardless of the level of traffic their stores have.

What are combined productivity rates?
“So if you closed your conversions at 30%, I believe you should have a combined productivity rate of 70%. And what I mean by that is you should close or get a prospect on four out of ten people to get to a combined rate of 70%.”

By using the Goaling Report on Doorcounts, John can set the exact goals he wants his teams to reach when it comes to the leading metrics that lead to desired results: sales conversion, average ticket, and prospecting.

Read the entire article HERE.

The Fam

How to Sell Mattresses Around the 4 Components of Better Sleep

This week on The Fam, they discuss how selling mattresses is all about selling a better night’s sleep, rather than selling the features of the mattress.

As they explain, there are four main parts of a better night’s sleep that retailers can use to make more sales.

first, before you even discuss mattress options, you need to find a pillow that meets the customer’s needs.

Secondly, once the perfect pillow is found, have the customer carry the pillow around with them to try out different mattresses. By doing so, they can fully envision themselves sleeping in the bed with the whole sleep system in action.

Click HERE to read the full article on how to sell a better night’s sleep.

NOTEWORTHY NEWS

Sustainability: Inside one company’s struggle to fix the “monstrosities” of the furniture industry.

Paper vs plastic:  Here are 7 tips to minimize merchant service fees.

Report: Nearly 30% of consumers haven’t paid off credit cards from last holiday season.

Robo letters: Why business owners are turning to ‘gratitude robots’ to show their appreciation for employees during the labor shortage.

RANDOM IRRELEVANCE

Must watch: How to watch the upcoming lunar eclipse – the longest partial eclipse of the century.

Space food: Heinz debuts ‘Marz’ Edition ketchup made with tomatoes grown in Mars conditions

Lunch Break: Wildlife photographer captures amazing shots – while on lunch break.

Stranger Things: After a long wait ‘Stranger Things’ announces season 4 release date.

Read More

Search Trakwell.ai (Formerly Doorcounts)