Which technology should retailers embrace?
There are conflicted views in the retail industry with reports suggesting that retailers aren’t grasping exactly how to utilise technology.
Following a decline in in-store footfall, it appears that brick and mortar retail stores are now taking steps to become showrooms in order to work in harmony with online stores rather than against them. Despite the obvious decline in consumer numbers, figures from the British Retail Consortium show that the fall is in fact slowing. In the first six months of 2013, in-store footfall fell by 1.5% on average compared with a 2.9% decline during the same period in 2012, so perhaps the balance of high street and virtual stores is nearing.
Mean while as high street stores take their new role in today’s approach to purchasing, online sales are still rising. In July the Interactive Media in Retail Group (IMRG) said sales grew 9% year on year and that sales on mobile devices show even stronger growth with a 129% year-on-year increase. While this may suggest that websites are clearly working for retailers, there is still a question of what other technology retailers should embrace.
Price comparison apps for smart phones, digital screens on trolleys and social media have all been under media scrutiny recently. Reports suggest that retailers aren’t embracing technology like digital screens on trolleys or price comparison apps although consumers would use them if they had access to them. Where as The European State of the Store study from Infosys reports that consumers don’t want to interact with brands through digital channels. The study of 2,250 consumers and 75 major retailers in the UK, France and Germany in August 2013 stated that fewer than 30% engage with retailer’s Facebook pages, Twitter profiles, websites or news feeds.
These statistics don’t necessarily mean that online space isn’t working; retailers need to consider which is the right space to be in. Perhaps consumers don’t really want to be buddies with retailers and know their every move and vice versa, but they do expect and want the convenience of being able to buy as and when they want to and at the best price.
According to The European State of the Store study for 73% of consumers the prices of products has more of an influence on their shopping habits compared to two years ago. As product pricing has become increasingly important, almost seven in ten consumers (68%) will buy from a store if it matches the best price in the market.
A useful, concise report has been created on the online presence of 36 of the UK’s leading high street retailers. The research, produced by Ann Stanley, managing director of Annica Digital, highlights whether the retailer is ecommerce enabled, has a mobile responsive website or an app as well as detailing Twitter and Google+ activity.
Co-op Food, Superdrug, Primark and Lloyds Pharmacy were among those retailers that fell short on the technology front. Of all the companies listed in the study, 20% did not have mobile optimised websites and 22% did not have a mobile application and 10% had neither.
Anicca Digital Ltd is a web development company that specialises in internet marketing and search engine optimisation.
Sources: http://www.computerweekly.com and The European State of the Store study from Infosys
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