Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/513366
T H E C O M M O N A R E A TAX BREAKS DRAW SHOPPERS TO NEW HAMPSHIRE MALLS, INDIA'S BIGGEST CHAINS LINK UP 6 S C T / J U N E 2 0 1 5 More online retailers opening stores More online retailers say they plan to explore the brick-and-mor- tar channel this year, according to a survey of 1,000 respondents conducted by eBay. About 75 percent of them say their outlook for retail sales this year is positive. Nearly as many say they an- ticipate that online revenue will increase by some 17 percent. But sales in brick-and-mortar stores will be part of that growth too. Some 14 percent of the respondents said they intend to make their initial investment in the in-store experience this year. An additional 12 percent say they will pursue global brick-and- mortar expansion this year, and 11 percent will open pop-up shops to drive sales. Several online brands, including BaubleBar, Bonobos, JustFab and Warby Parker have invested in brick-and- mortar operations in recent years. Perhaps this is no wonder: In-store conversion rates continue to be four times higher than online-only conversion rates, according to an ICSC report titled Shopping Centers: America's First and Foremost Marketplace. " Consumers still prefer in-store shopping," the report reads. "Ninety-four percent of total retail spending happens within the four walls of a physical store." In 2013, online retail sales came to some $263 billion, which accounts for only 6 percent of total retail sales, accord- ing to the Commerce Department. In-store sales, meanwhile, totaled about $4.3 trillion. Big Data good for consumers The late Steve Jobs famously bragged that he knew what his customers wanted before they did. Big Data, as it is called, will enable retailers and land- lords to know a lot more about what their customers want too, several speak- ers told delegates attending ICSC's European Conference in London. An array of technology means those in the shopping center industry will have "no excuse" not to know their customers intimately, said Christopher Sanderson, co-founder of the Future Laboratory, a consulting firm. Retail- ers can build up detailed profiles of their customers through, among other things, mobile phone-payment systems, beacons that track their movements in malls, and online technology that tracks their online activities. "Know your customers better than they know themselves," urged Sanderson. Best of all, customers are going to love being tracked, Sanderson said, because they will then be targeted with the products and services they prefer. "The 21st-century consumer now val- ues experience over privacy," he said. Others concur. "Consumers love to have their privacy invaded, as long as there is a coupon to be had," said Scott Galloway, a clinical professor at New York University's Stern School of Business and a founder of L2, a business-intelligence firm. The only people concerned about their privacy are those over 50, he quipped. "I believe people are being more and more open," agreed Krzysztof Bocianowski, leasing and expansion director at LPP S.A., a Polish retail conglomerate. Put simply, Big Data is the future of retail, said Philip Mountford, CEO of women's underwear chain Hunke- möller, which he says makes extensive use of beacons and other tracking technology at its stores.