Articles By Anna Rose Welch
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Retailers Be Aware: “Über-Digital” Shoppers On The Rise
1/29/2014
Study shows retailers should be looking for ways to engage via smartphone in an Internet of everything world. Cisco recently released its fourth annual research study entitled Digital Shopping Behavior in an Internet of Everything World. According to the study’s results, consumers are connected now more than ever, with the number of customers connected to the Internet while shopping in bricks-and-mortar stores having doubled. In fact, 80 percent of U.S. consumers, or “Digital Mass Market” shoppers, are connected to the Internet while shopping. There is also a rising category of people known as “Über-Digital” shoppers who are particularly reliant on mobile phones while making shopping decisions. This number has nearly doubled to 18 percent according to the results of this study.
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Google Expands Same-Day Delivery Service Test Into Southern California
1/28/2014
Google, in partnership with bricks-and-mortar retailers, looks to challenge eBay and Amazon. Google must be seeing some success from its same-day delivery service because it has announced it will be expanding the service to the Southland. Right now, the trial run service will only be available for several hundred Google employees in Santa Monica, though should the company see success with this expansion, it could eventually be opened to the general public. Indeed, when Google launched its Shopping Express pilot in March 2013, it was only available for Google employees in Northern California. However, since September, the service has been available to all customers in San Francisco and San Jose.
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Apple Laying Groundwork For Mobile Payment Service
1/28/2014
Apple is looking to expand payment services, turning customer iPhones and iPads into credit and debit cards. Apple could be poised to take mobile payments by storm in the future, the Wall Street Journal reported last week. According to the Journal, Apple is currently gearing up to build a mobile platform that would turn customers’ iPhones or iPads into credit or debit cards and would make the tech giant a huge rival for PayPal, Google, and Square.
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American Eagle CEO Resigns After Short Tenure
1/28/2014
Robert Hanson leaves in the midst of a tough year for American Eagle and the teen retail industry. Following the close of the market last Wednesday, American Eagle announced that CEO Robert Hanson is leaving his post after a short two years with the company. This move came as a surprise to Wall Street analysts, like RBC Capital Markets’ Howard Tubin, who says, “He had been implementing meaningful and positive changes to the business. We are a fan of Mr. Hanson, and he was, generally speaking, liked by Wall Street.”
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Retailers Trim Bricks-And-Mortar, But Not Giving Up On Physical Retail
1/27/2014
Stores get creative with technology and reduce square footage to save money, keep brick-and-mortar shopping relevant. The past few weeks have been filled with news of store closings and cutbacks: JCPenney made its announcement that it will be shaving off 33 locations this year. Even Macy’s, despite its successful holiday season, announced plans to close several locations. Sears announced last week it will be closing its downtown Chicago flagship store this spring because of customer’s increasing interest in online shopping. As Sear’s CEO Edward Lempert says, “We very often need less space to serve our members better and we may need fewer locations as well.” According to some experts, Lempert’s sentiment is going to be a common truth among retailers over the next few years as stores embrace e-commerce and consumers’ shifting preferences, CNBC says.
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Target, Neiman Marcus, And Other U.S. Retailers' POS Malware Linked To Russia
1/27/2014
Security firm alters accusation, claiming a different author, not a 17-year-old Russian teen, is responsible for creating, selling malware to cybercriminals. On Jan. 17, security firm IntelCrawler linked the malware responsible for Target’s security breach to a 17-year-old Russian man, Sergey Tarasov. However, early last week, InterCrawler revised its identification, saying another author, Rinay Shibaev, was responsible for writing the code. The security firm does still believe that Tarasov was connected to the malware but that he served more as “technical support” for Shibaev with several other unidentified members.
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Meijer Offers Free Wi-Fi In Stores To Encourage App, Digital Coupon Usage
1/24/2014
Meijer currently has more than 2 million enrolled in mPerks digital coupon program. The company announced it will be rolling out free Wi-Fi in all of its stores in order to give customers easier access to its mPerks digital coupon program and mobile app. According to Michael Ross, VP of customer marketing and emerging technology, “Our customers are relying on digital tools more than ever as they shop, which why we’re constantly providing them with resources to enhance their shopping experience. Now, with free Wi-Fi in our stores, we’re offering an additional cost savings because our customers no longer have to use their data plans while shopping.”
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Amazon Patents “Anticipatory Shipping”
1/23/2014
Amazon continues seeking ways to cut down on shipping time, anticipate consumer needs, and put data to good use. E-commerce giant Amazon, which often lures shoppers towards its endless, virtual aisles and cheaper prices, continues to strategize to maintain its dominance — now by finding a way to fulfill orders more quickly. In December, Amazon patented “anticipatory shipping,” which would enable the company to start the delivery process even before customers click “buy.” “Anticipatory shipping” could cut down on delivery time and keep people choosing online over physical stores, the Wall Street Journal says. Indeed, in the patent document, Amazon says that delays between the order and shipping date “may dissuade customers from buying items from online merchants.”
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Target Tests New Express Format
1/23/2014
A new 20,000-square-foot location could help establish Targe in dense urban locations. Target is looking to shake up its image as the large, suburban retailer by launching a new, smaller-format store better suited for dense, urban markets. Last week, Target signed a lease on a 20,000-square-foot store space in Minneapolis, which will be the site for the new test store called TargetExpress. Should this prototype prove successful, the company could see a wealth of new markets opening up for them in important markets like New York City — where it is difficult to find a location as large as the retailer is currently used to.
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JCPenney Announces Cost Cutting Initiatives To Aid Turnaround
1/22/2014
After issuing a vague holiday report card, JCPenney plans to reduce expenses through job cuts and store closings. Following in the footsteps of Macy’s, JCPenney announced its plans to close 33 stores and cut 2,000 jobs in what the company is calling a “strategic initiative to advance turnaround.” The company also plans to transfer about 3,000 company sales associates in various departments back to the commission pay system this spring in the hope that it will encourage employees to secure more sales. After all is said and done, the company stands to save $65 million a year from these new initiatives. However, while the company is optimistic that this will encourage long-term growth, analysts are less certain that this new plan isn’t just another sign that JCPenney’s turn-around effort is proving unsuccessful.