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63% customers say they’re willing to use mobile app from retailers when it is available, according to Nielsen.

26 Feb. 2016

The Nielsen Global Retail Format Preferences Survey released in April 2015 showed that one-quarter of global respondents are already ordering grocery products online for home delivery and more than half (55%) are willing to use it in the future. The survey polled 30,000 online respondents in 60 countries to understand how digital technology will transform the retail landscape of the future.

The report focuses on how consumers are using new digital technology and gives vision how retailers can use various retailing options to improve the shopping experience and drive increased sales across channels.

63% customers say they’re willing to use mobile app from retailers when it is available, according Nielsen

According to Nielsen Research consumers prefer to mix different channels including brick-and-mortar stores, online platforms and mobile apps for communication with retailers. „The most successful retailers and manufacturers will be at the intersection of the physical and virtual worlds, leveraging technology to satisfy shoppers however, wherever and whenever they want to shop,” - said Patrick Dodd, president, global retailer vertical, Nielsen.

Some prospective ways for retailers' growth lie in in-store digital enablement options, such as coupons, shopping lists, mobile apps, and in-store Wi-Fi connection. «Use of online or mobile coupons (18%) and mobile shopping lists (15%) are the most cited forms of in-store digital engagement in use today among global respondents, with about two-thirds willing to use them in the future (65% and 64%, respectively). Downloading a retailer/loyalty program app on a mobile phone to receive information or offers is used by 14% of global respondents, and 63% say they’re willing to use one when it is available. About one-in-10 global respondents say they log in to store Wi-Fi to receive information or offers (12%), use in-store computers to view extended product ranges (11%) or scan QR codes to access more information (11%). Roughly two-thirds, however, are willing to use these options in the future (66%, 68% and 65%), respectively.»

Willingness to use digital retailing options in the future is up to 45% in Europe.

The youngest respondents tend to more actively use six e-commerce options (home delivery, in-store pickup, drive-through pickup, curbside pickup, virtual supermarket and automatic subscription) and they state their willingness to use all of the e-commerce options in the future as well.

“Millennials are at the beginning of their careers and are starting to form households, while the oldest members of Generation Z will soon be graduating college and joining the workforce,” said Dodd. “These generations will shape our economy for decades to come. Therefore, it is critical that retailers and manufacturers understand how these consumers are using technology and include digital touch points along the entire path to purchase.”

ABOUT THE NIELSEN GLOBAL RETAIL FORMAT PREFERENCES SURVEY

The Nielsen Global Retail Format Preferences Survey was conducted between Aug. 13, 2014, and Sept. 5, 2014, and polled more than 30,000 consumers in 60 countries throughout Asia-Pacific, Europe, Latin America, the Middle East, Africa and North America. The sample has quotas based on age and sex for each country based on its Internet users and is weighted to be representative of Internet consumers. It has a margin of error of ±0.6%. This Nielsen survey is based only on the behavior of respondents with online access. Internet penetration rates vary by country. Nielsen uses a minimum reporting standard of 60% Internet penetration or an online population of 10 million for survey inclusion. The Nielsen Global Survey, which includes the Global Consumer Confidence Index, was established in 2005. To download a copy of the full report, please visit Nielsen’s website at www.nielsen.com.

ABOUT NIELSEN

Nielsen N.V. (NYSE: NLSN) is a global performance management company that provides a comprehensive understanding of what consumers Watch and Buy. Nielsen’s Watch segment provides media and advertising clients with Total Audience measurement services across all devices where content—video, audio and text—is consumed. The Buy segment offers consumer packaged goods manufacturers and retailers the industry’s only global view of retail performance measurement. By integrating information from its Watch and Buy segments and other data sources, Nielsen provides its clients with both world-class measurement as well as analytics that help improve performance. Nielsen, an S&P 500 company, has operations in over 100 countries that cover more than 90% of the world’s population.

For more information, visit www.nielsen.com.

The Omnishopper Has Arrived Globally: Here's Your New Best Customer, by MasterCard

24 Feb. 2016

MasterCard #OmnishopperGuide finds consumers researching online more, shopping at fewer stores as technology becomes ubiquitous.

Technology now touches nearly every retail transaction, creating a vastly different shopping experience for retailers and consumers alike, according to a report released by MasterCard. Eight out of ten global shoppers’ purchase decisions are now informed by a digital device, with consumers saying they are smarter shoppers and getting more value than before. However, though in-store sales still account for more than nine-tenths of all retail spending, the result is a more focused in-store shopper buying from a narrower list of unique stores than in years past.

The Omnishopper Has Arrived Globally: She’s Your New Best Customer, by MasterCard

Summary:

1. The retail industry is experiencing considerable changes due to the innovations in information technology, communication services and mobile devices. These trends have been developing for the last ten to fifteen years.

Consumers’ behaviour and expectations are also changing influenced by smartphones, tablets and cloud computing. The line between the e-commerce and the brick-and-mortar retail is gradually blurring.

Customers have an easy access to product information with the touch of a smartphone and the ability to compare products and prices as they shop. Therefore, the retailers must give an opportunity to accept payments securely and in a convenient way, both, at a physical or virtual checkout.

2. Online and mobile commerce are growing at a fast pace, creating new chances and posing new challenges for retailers. New channels and new devices do not only mean that there are new ways to reach consumers, but also that the customer can mix channels on a single purchase. „Consumers can review a good online, and purchase it offline later (behaviour otherwise known as the “ROPO”-effect4), or they can window-shop in a brick-and-mortar store and then complete the purchase online (known as the showrooming-effect). By only focusing on one channel or by not integrating channels at all, retailers are at risk of disconnecting with their customers and losing revenue in an environment where a competing retailer is just a click away.“

Nowadays, successful retailers must be able to operate through various channels and also smoothly integrate all of their channels so as to offer a perfect customer experience. This kind of integration is called “omnichannel retailing”.

3. And one of the important factors is, that the retailers must have an opportunity to accept payments securely and in a convenient way, both, at a physical or virtual checkout, supporting all new ways of payment.

„The payment market is currently experiencing highly dynamic changes that lead to, and –at the same time– are consequences of, new emerging technologies in the market.

So, the question arises, why we are experiencing such a wave of innovation? "Mobile online retail payments still dominate the use of mobile phones for payment purposes, but mobile proximity payments are expected to grow at an increased rate via the leverage of payment applications such as Google Wallet, Apple Pay and mobile network operator’s wallets." 9 The answer lies in a combination of market drivers of which the main ones are: 1. Rise of smartphones: Since 2007, with the launch of the first iPhone and Android based devices, the mobile phone has been transformed into an ever-connected portable pocket-sized computer. Together with the increase in data connectivity by transaction standards like UMTS, LTE and 4G, smartphones have enabled an ever present e-commerce-like opportunity on a small screen device. 2. Rise of millennials: Millennials, or Digital Natives born in 1980 or later, grew up with connectivity, mobile interfaces and digital technology as part of their life. Digital technology seems to be omnipresent in the lives of Millennials, to the point that smartphones are often quoted as the channel of choice for any type of service, including shopping and payments. 3. Emerging new business models and industry convergence: Start-ups, incumbent layers from the financial services industry and technology providers have been monitoring technology innovations to develop new services, as well as to evolve existing services. Payment, data and user interfaces have converged into a multitude of value propositions but ultimately the size and the brand value of companies such as MasterCard, Apple and Google are not only influencing and shaping consumer preferences but reshaping the retail environment through the development of new payment solutions as well as evolving their established products. These drivers of change are highly interconnected.”

Overall, physical-digital convergence is altering the retail experience all over the world. The focus on e-commerce and digital connectivity will help retailers to capitalize on the opportunities in this sphere.

Read more at MasterCard.com.

Walmart is making improvements in its stores and trying to simplify the online shopping experience.

22 Feb. 2016

Walmart is also closing 269 stores worldwide, including 154 in the U.S, as it shifts focus to supercenter stores and e-commerce

Walmart, headquartered in Bentonville, Ark., reported net income of $4.57 billion for the three month period ended Jan. 31, compared to $4.97 billion in the year-ago period. McMillon says the chain is making improvements in its stores and trying to simplify the online shopping experience.

Walmart CEO Doug McMillon said in a statement. "We are pleased with fundamental trends that are allowing us to improve our stores."

With heightened competition from online retailers, Walmart has been working to improve customer experience in stores and developing ways to better integrate online and in-store shopping, such as curbside pickup of online grocery orders. It also redesigned shelf layout at some stores and is working to move goods faster from suppliers.

Grocery has been a point of emphasis for Walmart as the market has become more competitive. In addition to being the largest retailer, Walmart is also the largest grocer in the U.S. The company is employing more department managers and seeking to ensure that popular fresh produce and organic products are consistently stocked. The online grocery order service is now available in 20 markets in the U.S. and will be expanded, said Neil Ashe, Walmart's CEO of global e-commerce, in a conference call Thursday. "We're going to focus on developing digital relationships with customers," he said.

Walmart is also closing 269 stores worldwide, including 154 in the U.S, as it shifts focus to supercenter stores and e-commerce.

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Ahold N.V.: Strong and trusted omni-channel retailer, with net consumer online sales €1.8 billion

20 Feb. 2016
Ahold in its Annual Report 2015 states the following:

Our online business is a true success story, growing at a continued high place in the Netherlands and Belgium, with consumer sales up over 30% in the last quarter of the year.

Today, we have evolved to meet the changing preferences of shoppers through our omni-channel offering. Customers can shop whenever and however is most convenient for them – by means of our great network of stores and market-leading online businesses. In every channel, we offer them all the right choices, with great quality and value and an easy and inspiring shopping experience, making it simpler than ever for customers to bring home healthy products to their families.





Across our markets, consumer expectations continue to rise. Customers want better quality, greater value, broad choice and personalized service tailored to how they live. At the same time, shoppers have access to sophisticated information about what they buy, and are able to compare prices, quality, and ingredients across retailers with the touch of a smart phone. They want to know what is in the products they buy and where they come from. And to stay informed and simplify their choices, customers increasingly turn to the global community of shoppers who eagerly share opinions online.

Throughout our 129-year history, Ahold and its brands have a long tradition of successfully adapting to changing times with cutting-edge offerings – from some of the first self-service supermarkets in the last century to today’s tech-enabled mix of convenient, customized online shopping and exciting, value-focused stores. As part of our Reshaping Retail strategy, we have continued to enhance our in-store experience, while at the same time expanding our strong online businesses through ongoing innovation, personalization and more market-leading brands.

The continuing momentum in our online business is exciting and important. Our ongoing efforts to complement our stores and let customers shop however and whenever they want has been a great success, with 2015 online consumer sales up to €1.8 billion. The bol.com business is a true success story, growing at a continued high place in the Netherlands and Belgium, with consumer sales up over 30% in the last quarter of the year. I want to emphasize how pleased we are to have bol.com as part of our company. In addition to the tremendous growth numbers, bol.com helps to infuse our company’s DNA with a commitment to technology and data-based, rapid, customer-focused innovation. Like Albert Heijn, bol.com – offering more than 10 million products – has become one of the most loved and trusted brands in the Netherlands. Albert Heijn Online also had a great year, attracting many new customers by improving service and the overall shopping experience and expanding its assortment. The team launched innovations such as the Allerhande Box, which provides customers with all the ingredients and recipes to make tasty and varied meals in 30 minutes. We opened an online pilot store on Alibaba’s Tmall in China to learn from this online market. I am very pleased that Peapod, our leading online grocery service in the U.S., returned to double-digit sales growth in the second half of 2015. It also accelerated its positive momentum this year with the introduction of a modern new mobile app while at the same time rolling out innovative products, including new meal kits. In addition, to better serve the important New York Metro market, we improved capacity and service levels at our New Jersey warehouse.

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