Scan & Go Will Be The New Normal Shopping Experience At Brick and Mortar

Amazon and Sams Club are not the only retailers moving forward with scan and go technology.

CBS News in Austin, Texas, reports H-E-B has recently launched new scan and go technology called H-E-B Go in 7 stores around the Austin Market!

H-E-B Go requires shoppers utilize its H-E-B Go app… while shopping, customers scan their items and bag as they go through the store.

The H-E-B Go app keeps a running total of what the items shoppers picked out and for budget conscious consumers is an excellent way to stay on budget.

Once shopping is completed the guest will save time by skipping the line by scanning their QR code on a kiosk to pay. Note estimated scan time is about 10-15 seconds.

H-E-B plans to expand the usage of the technology next year.

Enjoy - DC

Amazon's 100 Million Prime Members Are More Than Just A Number

Amazon's Prime membership of over 100 million customers is not only 11% higher than Costco's membership; Amazon's retention rate is over 90%.  The fight for the millennial shopping dollar is up for grabs with Amazon's platform being more convenient for an on-the-move / just-in-time shopping demographic.

Recently RetailDive reported 33% of millennials do not shop at a brick and mortar store during any given week.   With $200 billion in shopping power, catering to the millennial's unique demands will be the norm for marketers for years to come.

Source: Bloomberg

Enjoy -

DC

Prime Members Drive Sales Across All Categories At Amazon

Coresite Research sites in its recent study that Amazon Prime members are twice as likely to purchase vs nonmembers.  Biggest category winners with Prime members are HBC, Clothing and Electronics which all drive 50%+ of their sales through membership.

The key is to have the right mix of site merchandising, AMG and promo targeted at Prime members will lead to efficient sales and profitable growth.

Enjoy -

DC

Amazon Prime? Holiday Free Shipping Begins at Best Buy

The November and December time frame is my favorite time of the year.  I love seeing all of the planning and strategy teams have put in place with retailers during the year being executed.  Innovative merchandising, gift packs, etc. help retailers compete and differentiate from each other.  

A great retailer that offers differentiation is Best Buy and they are ready to compete head on with Amazon in November and December.  The Star Tribune reported today Best Buy is offering free shipping though December 24.

During Q4 2015, Best Buy reported that the on-line / mobile category accounted for 15.6% of sales.  Expectations are for this number to be even higher in Q42016.   Best Buy's free shipping offer removes a major barrier for consumers who purchase via Amazon Prime.  Best Buy special/value packs (which have been historically showcased) will drive higher ASP's while delivering value for consumers... which in turn will drive profits.

Enjoy -

DC

An Untapped Frontier - College Campuses - Target and Amazon Seek To Cash In On Lucrative 18-23 Demo

Did you know college students spend on average $2,000 a year on non-textbook related purchases?

As young adults transition from home to college to establish their identities and habits for adulthood, retailers Target and Amazon are forging their way across campuses throughout the US with easy on-site student access to their brands.

As discussed in Fortune's October 12 article, Amazon is using its "disruptor" business model with an aggressive plan to open same day order / pick-up kiosks across sixteen college campuses serving a population of over 500,000 students, by the end of 2016.

What's the hook Amazon is using you may be thinking?  Discounted Amazon Prime pricing of  $49.00 vs $99.00.  In addition to same day service, students receive all of the additional benefits of Amazon Prime including streaming media, unlimited reading offerings, and much much more.  

Target, on the other hand, will forge ahead with its plans to open thirteen 20,000 square foot stores with assortments focused on everyday basics to dorm room needs.  Much success has been reported from current Target campus based stores that are already open, but the race is on.

Because Amazon can be fast and flexible (not tied to investing in physical store locations) along with their disruptor mentality, the race to capture students directly on campus (quickly) seems to favor Amazon.

Enjoy - DC

$6 Billion and Growing Baby Segment On-Line Strategies Will Lead To Success

Having the right omni-channel approach is more important than ever for the Baby Category due to the explosive growth which has been occurring on-line.  According the April 20th article posted on Internet Retailer 20% of dollars (or $6.0 billion) of the $30 billion category are spent on-line.  

Three retailers own 75% of the e-comerce business according to a TABS March 2016 study:

• Amazon and its Diapers.com subsidiary lead all on-line retailers with around 43% share
• Wal Mart and Target make up roughly 32% of the remaining business

Manufacturers that have the right plan and channel strategy in place will be successful and win.  The Honest Company is a great example of hitting across the 4 P's. 

The millennial consumer continues to change the game for retailers that want to extend their brand experience into homes and mobile devices.  Having the right plan is only the start...

Enjoy - 

DC