Target: A Case Study in Customer Loyalty

By now most of us have bid our farewells to Target Canada. The big box giant, after attempting to make waves on the Canadian retail scene (and arguably it did, although in the end these were no more than ripples), fell quite short of expectations and as a result is no more. Target has really proven to be a perfect case study in customer loyalty.

Target Canada faltered, almost from the very beginning, for a number of reasons. One of the biggest was the empty shelves that seemed to constantly loom large for shoppers looking for a deal. Another was the prices; Canadian shoppers entered Target Canada for the first time expecting an American equivalent and were usually disappointed. Those Canadian shoppers who fell in love with the discount superstore from the U.S. continued to have their customer loyalty tested.

By the end of the road, Target Canada seemed to give up, but refused to go out without a bang. Check out this great article from The Huffington Post, “The Unbearable Lameness Of Target Canada's Liquidation Sale”: http://www.huffingtonpost.ca/2015/02/07/target-canada-liquidation-sale_n_6633616.html. After building up the hype about the liquidation sales Target would host in order to get rid of stock, customers again found themselves wondering why they’d even bothered.

The article features of number of Twitter images of customer’s experiences, from empty shelves, to higher prices masquerading as sales, to aisles that were almost impossible to navigate due to the mess. In the end, people did turn up for what they assumed would be great deals, but many just left after a largely lackluster event.

If Target Canada can teach us anything after only 2 years here, it is that customers need to feel as though their needs and wants matter. Customer loyalty is becoming increasingly difficult to retain, and even the slightest hitch in today’s retail sphere can have major impacts.

Storesupport has the tools and tips to help you boost your customer loyalty. Call us today at 1-877-421-5081.

In The News: StatsCan on Retail Trade

Late last month StatsCan released their numbers for December 2014, and they were not great. According to the report, “Retail sales fell 2.0% to $42.1 billion in December. This was the largest decline since April 2010.” This isn’t so startling when gas is removed from the equation - that brings the number to 1. 3%, but it is still a fair drop, especially since holiday shopping should have kept numbers at least what they were for the previous month.

Here is a graph displaying the growth and subsequent decline of sales - December’s drop is undeniably drastic.

Following gains in the fall, sales at food and beverage stores declined 0.5% in November. The decrease was largely attributed to lower sales at supermarkets and other grocery stores (-0.4%) and beer, wine and liquor stores (-1.0%). This was tempered by an increase in December: up 1% at food and beverage stores, 4% at beer, wine and liquor stores, and 3.1% at specialty food stores.

Retail sales in the clothing and accessories, electronics and appliances, and the sporting goods sectors also saw a drop, a hard fact to swallow considering holiday sales should have been up, at least in these sectors.

Ontario wasn’t alone either; retail sales were down in every province for the month of December, although Ontario did the see the largest drop (-2.3%) dollar wise.

We are hoping that these sales are not a sign of what is to come - but if they are, you need to be ready. Getting a leg up on the competition means a number of different things, whether you are a brand or a retailer - but keeping up brand loyalty and ensuring a positive customer experience are two important places to start. These two things go hand-in-hand with your merchandising strategy and your people support.

For more about boosting sales by increasing loyalty and the customer experience, Storesupport can help. We’ve got the tools you need to beat the competition and banish falling sales. Call us today at 1-877-421-5081.

You can review the full StatsCan report for December 2015 here: http://www.statcan.gc.ca/daily-quotidien/150220/dq150220a-eng.htm. 

Merchandising and Retail Trends: Retailing 2015

We are well into the New Year now, and PricewaterhouseCoopers has released their report on the retail industry for the coming months, “Retailing 2015: New Frontiers.”

If you are at all up-to-date with what is going on in the retail world, you will likely recognize that this title is quite apropos. With the vast and major changes within the retail sphere, it can often feel as though we are entering the unknown.

According to the report, big changes are in store for the retail industry: “the retail industry is becoming more complex and changing at an ever-increasing speed.  Shifting demographics, household downsizing, more educated consumers, new channel formats—among other trends—require that the industry quickly adjust and modify existent models, approaches and processes to satisfy the needs of future customers in order to be successful and profitable.”

Here are some of the key take-aways:

Targeting - Baby Boomers have almost completely upset the balance of things. Ok, not really, but they have had a serious impact. The generation gap now makes tailoring offerings to customers’ specific wants/needs imperative, rather than the mass appeal approach of the 1980s.

Strategic Outsourcing - adapting to the ever evolving demands of customers has led several companies in the industry to outsource everything from talent (people support) to software development. And, according to the article, cost efficiency isn’t the only benefit; outsourcing can help keep management’s attention focussed on key business issues.

Importance of Technology - technology has become important on so many levels in the retailing world, this is not new - but the way that it is used is. Operational efficiency will come to rely heavily on technology, including real-time data delivery and management.

Want more on retailing in 2015? You can download the full PDF here: https://www.pwc.com/es_CL/cl/publicaciones/assets/retailing2015.pdf. 

Stay in-the-know. Don’t let major shifts in the industry leave you at the back of the pack. Storesupport can help keep you up-to-date and current. Call us today at 1-877-421-5081.

Effective Brand Management – Are Empty Shelves Impacting Your Bottom Line?

With the continuous growth of competition in the CPG industry, effective brand management has become even more important. With the knowledge that retailer behaviour can impact your bottom line, the trend seems to be that brands are attempting to take far more control when it comes to their merchandise on the store floor. Managing your brand has never been more important.

Don’t just take our word for it; check out this recent article from Business Wire: http://www.businesswire.com/news/home/20141104006475/en/Displaydata-Research-85-U.S.-Shoppers-Research-Online#.VI8OW-8tCM9.

Reporting on a Displaydata consumer survey, the articles notes that, although 83% of consumers report that most of their shopping takes place in bricks and mortar locations, they do report several disconnects between the online and offline experience. These include different prices being offered online versus in-store, issues with stock and availability and poorly trained staff. These issues are contributing to the competition felt by bricks and mortar locations on behalf of online retailers.

Consumers tend to use various methods for information, and according to the article, omni-channel marketing seems to be gaining ground. Unfamiliar with this growing trend? Check out last week’s post!

Effective brand management means being aware of exactly what is going on in-store. If customers are not happy, can’t find your product, or are getting frustrated by poor service, they may just turn to the computer to solve the problem.

Storesupport can help you ensure that your brand is being managed correctly, all the time, and help you fix any problems if it isn’t! Call us today at 1-877-421-5081.