Continuing a two-year slide in retail spending momentum, American consumers will generate only a lackluster 2.9% year-over-year increase in holiday sales, the slowest pace since the recession, according to Customer Growth Partners’ 13th Annual Holiday Forecast.
In the face of an e-commerce take-over, brick-and-mortar retailers are flailing to attract Millennials into stores and industry experts are issuing the same old humdrum advice. Marketing gurus instruct retailers to make retail experiences for Millennials feel “personal” and “convenient.”
According to a recent report from Gleanster Research, 62% of retail marketers feel that changing consumer preferences and channel proliferation are the top two challenges they face when it comes to improving their customer’s online experience.
Sure, the Internet plays an aggressive game. It’s looking like the Internet business is trouncing the retail business. However vast an assortment or low the prices a retailer offers, the Internet does it better and cheaper.
Back in March, Bloomberg ran a story headlined, “Private Equity’s $36 Billion Retail Bet Not Going So Well.” In a nutshell, this piece catalogued how investment firms like Bain Capital had poured large amounts of money into brick-and-mortar chains in the run-up to the recession, only to be met with lackluster results.
Amid weaker-than-expected August retail sales, leading retailers are kick-starting their holiday shopping season by wooing existing shoppers through their customer loyalty programs. Retailers are increasing their investment in the traditional transaction-based loyalty efforts because of the proven success of rewarding customers for their purchases.