Unlocking Revenue Through Innovation
Retailers are projecting growing sales and revenue but believe greater investment in innovation in an omni-channel strategy including website, mobile and social media channels will be needed to remain competitive according to the 7th annual CIT Retail Outlook study.
Approximately 70 percent of retailers predict good results from sales in all channels when looking at the near-term future, with 58 percent projecting that holiday sales increases will reach 6 percent or more. Around half or more of retailers surveyed indicate they plan to increase hourly employees (62%), in-store exempt employees (49%) and employees dedicated to Internet/mobile sales (62%) during the upcoming holiday season.
The confluence of channels however requires retailers invest in innovation in order to remain competitive. For many, that means increasing their investment in mobile. A large majority of retailers (72%), according to the report, see having a mobile app as a competitive edge, with more than half (57%) believing revenue is growing from mobile. As a result, nearly 2 out of 3 retailers (62%) expect an increase in the number of staff they devote to Internet/mobile sales channels for both the holiday season and upcoming New Year.
“The report corroborates what we have been observing over the past few years with our clients and provides us insight into what retail executives are focusing on, both in terms of their near-term tactics and long-term strategies,” said Burt Feinberg, President of CIT Commercial & Industrial Finance. “We’re witnessing an increased fusion between brick-and-mortar, web and mobile strategies intertwined with social media to build brands and customer loyalty. The use of improved customer data is helping to achieve efficient targeted marketing using these mediums to build sales to all generations – from millennials to baby boomers.”
Additional highlights from the study includes:
+ More retailers feel that revenue is growing from website/web stores (71%) versus from physical stores (59%).
+ A large majority of retailers (72%) see having a mobile app as a competitive edge, with more than half (57%) believing revenue is growing from mobile.
+ More than three-quarters (79%) report having effective plans to deal with risks in cyber security and data breaches at point-of-sale.