PERSPECTIVES

👀 New Respect for Brick-n-Mortar Retailers

Retail IS detail. And some of those pesky details are increasingly cropping up to torment online sellers. 

For example, there's the matter of managing returns. As Chris Jarvis wrote in DMM/ShoppingCenters.com*:

• "We return roughly 30% of all online purchases compared to only 10% from brick-and-mortar."
• "In 2021 retail returns jumped to an average of 16.6% versus 10.6% a year ago."
• "Research suggests that a single online return can cost two-thirds the original price to handle when we include labor, transportation, and warehousing costs." 

Meanwhile, the pure-play online retailers are confronting the ever-demanding customer expectations. 

Just this morning we saw yet another article speculating about the staying power of online shopping, in this instance, grocery shopping. 

• "Right now, the direction is … unclear," admitted the reporter.* "I have been scouring data on online grocery shopping in the U.S., and I will be humble and say that I don’t have a clear picture."
• "My wishy-washy analysis is that Americans haven’t fallen head over heels for buying bananas over the internet, but we aren’t rejecting it, either."

Of course, it's not just media pundits who are looking for answers to this question about online versus in-store shopping. Retailers are living with this issue, and they have to make decisions. 

As the second quarter of the year begins, many of us are experiencing what that fellow in the cartoon is feeling. We are not where we expected to be (and maybe not even where we thought we were!) 

Ahh yes, yet another flexibility test. The first quarter of 2022 was full of some major events, nationally and internationally, that disrupted many plans.

As you contemplate where you are now, compared to where you thought you were, and especially, where you intended to be, don't despair! Even more important, just like you do with the GPS system in your car, disregard"returning to the prescribed route."

ICYMI. You know, that's the shorthand for In Case You Missed It. And in fact, we had missed this.

"Consumer confidence rises for first time this year." 

As reported by Chain Store Age*, "The Conference Board’s Consumer Confidence Index rose slightly to 107.2 in March, up from 105.7 in February. It was the first time the metric has increased in three months."

Wow! Is that ever a stray ray of sunshine! We always look to Consumer Confidence levels as a leading indicator for retailers.

"Retail is a mirror of society."

"And the award goes to..."

No, Not About People This Time 
While we typically think of people as recipients of recognition – and we trust you already are doing that, right? –  this is a different challenge.

Ready? Here we go! Of your merchandise, which products are Award Winners?! 

Ready to add a bit more fun to your store, AND generate incremental sales? Consider this friendly Tortoise, a "tap to pay mobile smart store."

Here's how it works. You choose items to sell that can be boxed, and held at room temperature. Maybe it's a dozen cookies. Or a book. Coffee mugs? Mobile phone rechargers. Whatever makes sense for your store. (And apparently, higher priced goods do especially well.)

Place the boxes into a Tortoise container that has colorful graphics of what's inside and the price per box, and send the Tortoise on its way.

Spring is in the air.  More places are lifting Covid restrictions. Daylight savings time starts this coming Sunday, extending the evening hours. 

And, for the first time in years, we can expect to celebrate Easter, Mother's Day, Father's Day, graduations, weddings with few restrictions. All promise a renewed air of celebration! 

There is widespread anticipation that consumer spending will be very strong. But...spending on what? Before you place all those merchandise orders, consider this.

• We expect that the second quarter burst of consumer spending will be weighted towards services more than consumer goods. A big surprise for many.