Kepler Retail Radar
A monthly publication providing information, analysis and commentary on retail trends and consumer behavior using aggregated Kepler Measures.
January 7, 2019
Kepler Analytics is in a unique and privileged position. We have our sensors in over 60 retail brands within 1,700 locations across Australia. We collect traffic and other consumer behaviour measures. Our clients provide us with their daily sales budgets, actual POS sales and often a number of other measures on which they manage their businesses. By aggregating and anonymising our information we can provide the retail industry with benchmark measures on traffic, sales, conversion and other related KPIs focussed on understanding sales and the drivers of retail sales. The Kepler Retail Radar newsletter is published every 6-8 weeks. We try to keep our analysis relevant and deliver helpful insights which assist in understand historical performance but also highlight where learnings can be implemented to deliver better retail results in future.
December 14, 2018
Black Friday 2018 is upon us, and this can only mean that retailers have offered discounts and promotions both in their online and physical stores. We therefore expect a spike in customer traffic, both in and out of the store, and also a big jump in sales for that special shopping date alone. However, what else can we understand from this shopping phenomenon? To deeper understand the consequences of such an event, we will explore and compare the metrics of Inside traffic, Outside traffic, Shopfront Conversion, Dwell Time, Returning Visits, Sales, Total Sales and Average Transaction Value against all relevant historical data (24/09/2018 – 18/11/2018) and relate to how a store is performing on Black Friday 2018 and the week (19/11/2018 – 25/11/2018) itself.
July 6, 2017
The Kepler Retail Radar attempts to use data to answer the question on many retailers’ minds: Are VIP events providing additional sales above those of a standard day and week? Over the past few years, we have observed a slow but steady decline in shoppers’ numbers in shopping centres. In this competitive climate, shopping centres are employing several strategies to increase foot traffic. One prominent strategy is to have VIP events. We have collected and analysed data on many of the major VIP events from January 2016 until June 2017 at 140 Australian shopping centres.
May 22, 2017
Mother’s Day 2017 occurred on Sunday 14 May 2017 and, after reviewing the data, we are pleased to announce that our predictions were accurate. These together will other analyses are presented in this Kepler Retail Radar. We hope that our findings can assist with your retail planning for Mother’s Day 2018. As Kepler monitors both outside store and inside store traffic and the associated conversion rates (POS data used), we are one of the few sources for such a comprehensive analysis.
May 3, 2017
While sales may only spike on the Saturday before Mother’s Day Sunday, retailers have the opportunity to engage with a large volume of shoppers starting on Thursday and Friday. Retailers should consider increasing rosters for the days leading up to Mother’s Day to increase sales conversion rate or at least try to capture prime shoppers to convert into a sale on Saturday. There is also an opportunity to design promotional activity around converting shoppers on Thursday and Friday. Capturing the unconverted shoppers on Thursday and Friday will not only help increase sales revenue, but also enhance business competitiveness in the industry. Once these shoppers are converted there is a lower likelihood of them transacting with a competitor on the Saturday where most of the final purchase decisions traditionally occur.
April 5, 2017
Unstoppable growth in online retail will spell the death of Australian bricks-and-mortar stores we were told repeatedly. But, will it? The ‘death’ of bricks-and-mortar has been predicted time and again by industry experts. A power retail article found here states mixed reviews, but the conclusion is the demise of brick and mortar. In an ABC article, here, we hear the death knell of book stores. Although many people both retail managers and shoppers concur, they couldn’t be more wrong and are severely underestimating the importance of tangible, physical stores.
January 25, 2017
Did you know that Traditional Brick and Mortar stores are still making 93% of the retail sales within Australia? This indicates that retailers should invest more into their visual merchandising, promotions and staff allocations to improve their engagement with customers thus improving ROI. You must learn more about the space you are using and how to utilise it. Traditional retailing along with Branding are the best ways to create a custom experience for your shoppers. By knowing exactly what is going on and the traffic around and within your store you are taking control and gaining power.
December 14, 2016
Many people think of big data as lots of data that is collected by large companies to spy on people. They think of it as this new technology that is slowly revolutionising the way we do business. Big data is not as simple as numbers that businesses are collecting. Big Data for Dummies states, “Big data is not a single technology but a combination of new and old technologies that help companies gain actionable insights. Therefore, big data is the capability to manage a huge volume of disparate data at the right speed, and within the right time frame to allow real-time analysis and reaction.”
October 25, 2016
As the retail landscape in both the digital and physical worlds change, the goal of business owners is to increasingly improve services for their customers. Data and analytics have become more and more important. Sometimes the numbers can be overwhelming, but we continue to ask for more. The key to improving any business is to benchmark and then continuously improve. This means that you need to set goals, do things that relate directly to your goals and then work hard to improve the numbers. A good way to think about achieving your goal, whether in a bricks and mortar store or online is – pick a number and move it in a positive direction.
August 31, 2016
Footfall counting helps you understand the volume of customers you are getting a day, the beginning of your funnel. Sales data shows you the end of your funnel; it shows what customers end up buying. If you know how long customers spend in different areas of your store, then you have more awareness of what products customers looked at first and considered buying. You can see where they go when they enter your shop and where they are stopping. Comparing this to sales data for those products helps you refine product offerings. This knowledge allows you to experiment with messaging and displays which in turn helps you find out what results in increased consideration time and browsing, ending in greater sales volume.
June 15, 2016
We keep saying it over and over and are sure some of you are sick of it… but one last time: Customer engagement is the way to increase revenue! It should be the ultimate goal of every retail business both in store and with advertisement. Give customers more of what they are looking for and go above and beyond with your in-store experience and your revenue will be above and beyond what you are currently making.
April 27, 2016
As seen in an earlier article, From Bricks and Mortar to Bricks and Mortar, consumers went through a mass phase of wanting retail online and are now heading back to bricks-and-mortar. Enter the Phygital…a new wave of retail innovation. The question is, “Are Aussie Retailers true innovators and will they be able to keep up in the rapidly changing retail arena?” There are certain instances where Australian retailers have been innovative – for example Shoes of Prey, Vinomofo, and The Iconic – but on a whole, retailers seem to struggle in this arena. Let’s explore what makes retailers innovative…
March 29, 2016
The initial touch point with a customer is the most crucial part in determining whether the experience you provide will engage customers. It starts even before a customer steps foot into the store. In order to engage consumers, brands must know what their target market wants. Their shopping patterns and behaviour should be the focus and the goal is to improve shopper experience. The floor they walk though should ultimately inspire and trigger emotions to feel apart of a brand.
March 1, 2016
At Kepler Analytics, we strongly believe in the power of data-driven decision making. The e-commerce market has had the luxury of customer behavioural data for decades when it only commands 5% of all retail spending. So it’s mind-boggling to think that, while 95% of all spending is still done at brick-and-mortar stores, there is no reliable and effective method to measure in-store customer behaviour at all!
January 12, 2016
In the 1800s retail was all about customer service and the bricks and mortar store. In the past 15 years we have seen a drastic shift in how retail and marketing are conducted. Consumers took control of the industry in the early 2000s and focus went from bricks and mortar to e-commerce and online. In 2015 and beyond the focus is going to begin to shift back to the bricks and mortar experience where bridging the gap between physical and digital will be the key. Truly knowing your customer and interacting with them on an intimate level will drive the retail experience.