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Business Gets Tougher for Retailers
2 CommentsMark Roberti
Dec. 6, 2011—Perhaps it's because they don't have as much money in their pockets as they did before the 2008 financial crisis, but consumers are less loyal to specific brands these days, and are abandoning retailers that don't have the items they want to buy in stock, according to some new research findings.
A nationwide survey commissioned by Galleria Retail Technology Solutions (RTS), a provider of retail and category-optimization solutions, reveals that nearly 70 percent of adults in the United States would avoid shopping at a retail store if they encountered empty shelves. Harris Interactive, on behalf of Galleria RTS, surveyed a random sample of 1,021 U.S. adults regarding retail store loyalty, from Nov. 3-6, 2011. The survey also found that women would be more likely than men to avoid shopping at a particular retail store upon encountering empty shelves during their visit (73 percent versus 62 percent, respectively).
In addition, the survey found that nearly two out of three U.S. adults would shun a retail store due to:
• Long checkout lines (64 percent)
• Desired items being out-of-stock (63 percent)
• Difficulty in finding desired products (62 percent)
According to Galleria RTS, "Statistics have shown that it costs five times more to obtain a new customer than to retain an existing customer" (see Consumers Get Cross When the Cupboard is Bare). "In the current U.S. economic climate, when consumers are more cost-conscious than ever, retailers should make every effort to ensure they have the right products, in the right place at the right time to keep their customers happy... and coming back."
The study supports the notion that retailers can use Galleria RTS' suite of retail-optimization software to determine the correct products, and the proper quantity of those items, to stock in store, based on actual consumer demand. But it also supports the idea that retailers could—and should—employ radio frequency identification to better manage inventory.
Dec. 6, 2011—Perhaps it's because they don't have as much money in their pockets as they did before the 2008 financial crisis, but consumers are less loyal to specific brands these days, and are abandoning retailers that don't have the items they want to buy in stock, according to some new research findings.
A nationwide survey commissioned by Galleria Retail Technology Solutions (RTS), a provider of retail and category-optimization solutions, reveals that nearly 70 percent of adults in the United States would avoid shopping at a retail store if they encountered empty shelves. Harris Interactive, on behalf of Galleria RTS, surveyed a random sample of 1,021 U.S. adults regarding retail store loyalty, from Nov. 3-6, 2011. The survey also found that women would be more likely than men to avoid shopping at a particular retail store upon encountering empty shelves during their visit (73 percent versus 62 percent, respectively).
In addition, the survey found that nearly two out of three U.S. adults would shun a retail store due to:
• Long checkout lines (64 percent)
• Desired items being out-of-stock (63 percent)
• Difficulty in finding desired products (62 percent)
According to Galleria RTS, "Statistics have shown that it costs five times more to obtain a new customer than to retain an existing customer" (see Consumers Get Cross When the Cupboard is Bare). "In the current U.S. economic climate, when consumers are more cost-conscious than ever, retailers should make every effort to ensure they have the right products, in the right place at the right time to keep their customers happy... and coming back."
The study supports the notion that retailers can use Galleria RTS' suite of retail-optimization software to determine the correct products, and the proper quantity of those items, to stock in store, based on actual consumer demand. But it also supports the idea that retailers could—and should—employ radio frequency identification to better manage inventory.
READERS' COMMENTS
Customer Service is Key to retaining customers
I think that the biggest issue retailers face is their own poor management. Customer service at retail outlets is often terrible-- and who can be blamed for that but the owners and managers? Better training and some sort of incentive for excellence in customer service would go a long way toward retaining those customers. Denise Gabbard Printer Ink Cartridges
Posted By: 12/29/11 at 11:35 PM
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I agree with your point of view about retailers. in business point of view that business and sales are going tougher and tougher for retailers. thanks for this informative and intellectual post. keep up the right and great work.
Posted By: Reeha smith 5/7/12 at 7:26 AM