What Australian Retailers can expect from November and December 2019 Kepler Analytics is in a unique and privileged position. We have our sensors in over 3000 locations globally, collecting traffic…
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.
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.
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.
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.
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.
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.
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.
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."
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.