[May 22, 2018] |
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New Research from Displaydata and Planet Retail RNG Estimates That Global Retailers Spent $104 Billion on Manually Changing Price Labels in 2017
New research launched today by Displaydata
and Planet
Retail RNG reveals that inaccurate, inconsistent pricing - and a
lack of digital technology in-store - is costing retailers in lost sales
and consumer trust, as price-conscious shoppers seek out the best deal
and better experiences online.
This press release features multimedia. View the full release here:
https://www.businesswire.com/news/home/20180522005419/en/
According to a new report from Displaydata and Planet Retail RNG, over two thirds of shoppers want technologies that enhance their experiences in stores. 33% want promotions sent direct to their mobile devices; 31% want Electronic Shelf Labels (ESLs) to show accurate, real-time prices, promotions, and detailed product information; and 27% want to be identified as a loyal customer. (Photo: Business Wire)
The research report, Analogue to Automated: Retail in the
Connected Age - which surveyed 5000 consumers and 1000 retailers - sought
to understand what consumers want from physical stores, and how
retailers are responding. The findings clearly show that retailers are
failing to keep up with shifting consumer attitudes towards price and
promotion and are unable to engage with shoppers digitally, in
real-time, when they are on the shop floor.
Consumers welcome agile pricing
The positive news for retailers struggling with rising rents, squeezed
margins and online competition, is that shoppers are decidedly tolerant
of 'agile' or 'dynamic' pricing if it saves them money and reduces
waste. In fact, contrary to recent speculation, the research found:
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Nearly two thirds (65%) of consumers would welcome price changes
throughout the day if a product is approaching its sell-by date.
However, a quarter of retailers are not convinced of customer
acceptance if they were to change prices more frequently, highlighting
a barrier to agile pricing that doesn't exist in consumers' minds.
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With price and promotion labelling still managed manually, 65% of
retailers are unable to make the amount of changes they want to. The
process is expensive, too: 67% of retailers spend up to 4.99% of
average monthly store turnover making price and promo changes. That's
equivalent to approximately $104 billion in sales - based on 2017
retail sales - across the 10 markets surveyed.1 This
emphasises how compromied physical stores are when it comes to agile
pricing compared to online stores that can update millions of prices
throughout the day.
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The majority of retailers (84%) agree that the ability to price with
speed and agility can help improve margins and store efficiencies; 78%
of retailers want the ability to make more changes to offer customers
better prices and deals.
Shoppers' desire for digital technologies
The research also strongly points to increased consumer desire for a
more digital and connected shopping experience that meets their
expectations around pricing, promotions and availability, and matches
the information shoppers can get online, such as competitors' prices,
stock levels and more:
-
Over two thirds of shoppers want technologies that enhance their
experiences in stores. 33% want promotions sent direct to their mobile
devices; 31% want Electronic Shelf Labels (ESLs) to show accurate,
real-time prices, promotions, and detailed product information; and
27% want to be identified as a loyal customer.
-
The desire for digital services correlates with the poor experiences
that almost half of shoppers (42%) claim to have had in store due to a
lack of Wi-Fi, a lack of information at the shelf edge, and
differences in product availability in store and online.
"Our research shows that despite the huge changes retail has undergone
in recent years, a fair and accurate price, consistent across channels,
remains the key purchasing factor for the vast majority of shoppers,"
said Andrew Dark, CEO, Displaydata. "However, to effectively harness the
power of price, thrive against online competitors and retain shoppers'
trust, retailers must create a digitally connected environment to meet
the high customer expectations that are being shaped by online
experiences."
"Consumers today are digitally empowered with access to real time
information on products, and they are more price sensitive than ever,"
said Sarah Herrlein, senior retail analyst, Planet Retail. "Our research
shows they expect a more consistent, automated experience, but their
trust and faith in the store is lessening due to basic technological
inefficiencies. With retailers spending billions on things like manual
price changes, the case for deploying digital technologies that optimise
efficiencies, deliver the customer a better experience AND better value
in-store, has never been greater."
To download a copy of the full report, go to: www.displaydata.com
Methodology
Displaydata commissioned PlanetRetail RNG to survey 1,000 retailers and
4,811 consumers, across 10 countries. Every respondent had a senior
management level of job designation or higher and worked for a retail
organisation that operated stores and online or stores only, generating
more than USD100 million in annual revenue. Every consumer, aged 18-65,
had completed a purchase within a store within the week prior to taking
the survey. The countries included in the survey were: Austria, Belgium,
Bulgaria, Germany, Hungary, Netherlands, Poland, Switzerland, the UK and
the US**.
**n=100 retailer and n=350 consumer respondents per market, except for
the UK and the US, where n=1,000 consumers per market.
About Displaydata
Displaydata is the leader in the design and supply of fully graphic
electronic shelf labels (ESLs). We were first to market with three-color
ESLs and continue to lead this category, having shipped millions of
labels. We work in close partnership with many of the world's largest
retail brands and have operations in the US, Europe, LATAM, and Asia. We
help retailers optimise revenues and margins by improving the customer
experience at the shelf edge, where most purchasing decisions are made.
Displaydata's ESLs, with the option of integrated Bluetooth Low Energy
beacons and NFC, enable retailers to control and drive instore pricing
and promotions with speed, agility, and consistency. Fully graphic and
available in three colours, the ESLs can display product, price,
promotion, stock levels, social reviews, currency details, and much
more. Displaydata's ESLs are part of an architecture designed in
partnership with retailers to be enterprise ready. The trusted platform
is simple to install and needs the least amount of instore hardware of
any vendor. The wireless network is secure, and the robust software
enables the centralised management of any number of ESLs, across any
number of stores. For more information, please visit: www.displaydata.com
About Planet Retail RNG
Planet Retail RNG is a global intelligence and advisory business
exclusively focused on retail. We track over 2,000 leading retailers and
have built a proprietary and globally comparable macro-economic model,
with over 4.5 million data points. Through applying our STEIP
methodology, we identify winning strategies that give our
clients competitive advantage in understanding where to play and how to
win. 18 of the top 20 global retailers and hundreds of global brands
work with us to identify and drive the future of
retail and consumer purchase. For more information, visit www.planetretailnetgroup.com
1 Over two thirds of retailers surveyed, confirmed that they
spent between 1-4.99% of annual turnover on manually changing labels.
PlanetRetail RNG calculated the median percentage of sales in each
country to work out the comparative cost in sales of these manual
changes, based on its database of total banner sales.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180522005419/en/
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