We are going to hear from top ranked Shop.org speaker Sucharita Mulpuru from Forrester Research as she shares some recent data on consumer views and adaptation of mobile technologies and how retailers are responding.   Andrew Koven the President of Ecommerce for Steve Madden Shoes is someone who is a self-described mobile evangelist and has the experience and best practices to back it up.   He is going to show us what he has been doing with mobile over the past few years, what has succeeded, and share a few ways for retailers to get started with a limited budget.

Register now and join us for a Shop.org members only webinar as we examine the three important markets for mobile and the obstacles and enablers of mobile commerce, including the technology, the consumer interface, and the need for marketers to adopt realistic expectations of what mobile can do for them.  Remember the new 3:00 PM EST start time.  If you are unable to make it, all Shop.org members can replay all of our webinars  for the next year and this is one where everyone will get good use of this member benefit.  Share it with your entire team! 

Thanks everyone and as always, please contact me if you have any questions.  Mobile is here and Shop.org is also here to help our members make the most of it!

Larry Joseloff
VP, Content
joseloffl@Shop.org

As I mused recently when we released our Easter survey results online shoppers are a generous lot and this Mother’s Day is no different:

• More than four out of five online Mother’s Day shoppers will shop specifically for their moms and stepmoms this year, compared with three out of five general Mother’s Day shoppers. One in five online shoppers will also buy for their wife, in line with general shoppers. Interestingly, online shoppers are also twice as likely as others to buy for their grandmothers this year, possibly something else to call out your marketing message for this holiday.
• Online Mother’s Day shoppers expect to spend a combined net average of almost $201, or 58% more than all Mother’s Day shoppers.
• One quarter of online Mother’s Day shoppers expect to spend more for the occasion this year than last (vs. just 11% of all shoppers).
• Among other gifts, online Mother’s Day shoppers will concentrate their spending on jewelry ($38.12), a special outing such as dinner or brunch ($28.57), and flowers ($25.21).
• Certainly, online Mother’s Day shoppers won’t make all of their purchases solely online – among other venues, one quarter will also shop in discount stores and one third will shop in department stores.

Shop.org Members can download the full results here. For further details on the overall survey results, please see also the NRF press release on the subject. As always, do let us know your thoughts. Parting words of advice from this mom: you have just 12 days left to reserve that brunch and buy your Mother’s Day gifts…

A couple of highlights specific to online channels:

2009 areas of focus 

• The majority of retailers surveyed focused heavily last year on growing their online sales (in retrospect, little surprise there – remember all the discussion this time last year of how resilient Web sales were compared to offline sales?).
• Over half dedicated more resources to integrating the company’s online and offline presence (55%).
• For many retailers, online and in-store promotions, as well as direct mail, overshadowed more traditional (and costly) advertising vehicles such as sponsorships, TV and print.

2010 outlook

• This year, over half of retailers surveyed will be focusing on Web site personalization.
• Social networks are by now an integral part of any marketing toolset in the retail world. Over two-thirds of retailers say they’d like to develop a specialized widget that would facilitate increased customer interaction via social networking sites. (Will be interesting to see the creativity in executing these!)

The full Retail Horizons Report is available for purchase, and further details are also available in the NRF press release. As always, we welcome your comments.

Why do we believe the 2010 SORO study has the potential to be the best yet? On the one hand, this is a survey that focuses on key areas that retailers increasingly see developing from experiment to core functionality, so developing benchmarks for those is an important Shop.org initiative. Secondly, to make this research truly relevant to you, we want to report the aggregated results at a fairly granular segmentation level, especially by category / sector. To achieve this goal, we’re challenging retailers to participate this year as never before. We need a minimum of 10 (preferably more!) retailers in each category to participate so we can break out segmented results and benchmarks. So, if you ever thought your participation was optional, no more!

If you haven’t received your survey participation email this week, please let me know ASAP. The deadline to participate is end of day Wednesday, March 31. Look for results published over the coming months, including the May 5 Shop.org Webinar that is part of Shop.org’s Marketing Month series of events.

Thank you so much for participating in SORO 2010!

If you have never been to the NRF Annual Big Show I recommend going.  It is quite an experience to see literally thousands of retail industry experts invade New York City.  From someone whose career has been almost 100% in eCommerce, going to a “traditional” retail show and hearing about the important topics that are facing both online and offline retail was enlightening.   It provided a fresh perspective of where eCommerce fits in the entire retail world, where we are succeeding, where we are falling short, and what opportunity lies ahead.   This year is going to be the best one yet.  I am especially excited to the Sir Terry Leahy the CEO of TESCO to provide a true global view of cross-channel retail.

One session Shop.org is managing involves our Board Member Brett Hurt interviewing three leading venture capitalists (VCs) on the current state of the economy and the opportunities for retail to grow in the future.   Brett wanted me to reach out to the community for suggestions for questions.  So, if you were sitting down with leading VCs and could ask them any questions regarding retail or the economy what would you ask them?  Simply respond to this blog or send me an email and I will forward them on to Brett.  

Thanks everyone and I hope to see the Shop.org community out in full force taking a bite out of the big apple at the NRF Annual Big Show.

Larry Joseloff
VP, Content — Shop.org
joseloffl@shop.org

Click here for pictures from the event.

Kate Terry, EVP Global Ecommerce, Tommy Hilfiger USA. Kate, who has deep e-commerce experience from companies such as Coach, Polo and Kate Spade is in a newly created position, EVP, Global E-Commerce, based in Amsterdam.  This new role combines global e-commerce and marketing for the direct  business, which had been separate prior to Kate joining.  The goal is to grow the e-commerce business to 20-25% of the store business.

Kate has overseen the creation of a new structure, which adjusts the mixture of functions being centralized vs. de-centralized.  The object is to centralize areas to gain efficiency and brand consistency, but to keep the local flavor where it’s most important.  And, to separate ego-authorship from local expertise.  I love the term, ”ego-authorship,” which is meant to describe situations where people are given decision-making authority as a way to give them a voice, which Kate believes is not the right reason to give someone decision-making authority.  Below is how some of the functions at Tommy are distributed:

• E-Commerce Platform – de-centralized, there is a different platform in the US than Europe
• Merchandising – 65% overlap / 35% local
• Service – 65% overlap / 35% local
• Marketing – 55% overlap / 45% local
• UI – 100% overlap

Cyriac Roeding, co-founder of MOBshop, made a bold statement about mobile that captured the audience.  “The future of online, is offline.”  He first made the case for the massive growth of mobile Web usage – particularly in the U.S. and primarily due to the iPhone.  He then discussed how the mobile Internet will change the in-store experience forever including the ability to drive foot-traffic to the store, close sales and increase loyalty.

Hiroshi Mikitani, CEO of Rakuten. He is the founder of Rakuten and built the company without any venture capital.  It was the first time most people in the audience heard the story of Rakuten, which is the #1 e-commerce company in Japan.  Amazon in Japan is 20% the size of Rakuten, a rare spot for Amazon, as it is the market leader in most other parts of the world. The Rakuten business model is to be a selling platform mainly for SMEs.  They currently have revenues of nearly $4 billion (and facilitate much higher gross merchandise revenue).  He gave an extreme example of an egg farmer on the Rakuten platform that sells $300,000 in fresh eggs per month.  The eggs he sells are fresher because selling directly to consumers is weeks faster than using the traditional distribution system, which, also addes a 70% mark-up after they pass through the various distributors. The farmer’s margins are so high that if the eggs arrive broken, he will resend them with no questions asked.  Mr. Mikitani also described how the Rakuten Eagles, the Japanese professional baseball team he purchased, supports the Rakuten business model by creating ongoing brand mentions due to the media coverage of the team.

Mr. Mikitani also spoke about the future of e-commerce.  He believes that Southeast Asia is poised to bloom and will be a bigger market than China.

If you’re interested in following global e-commerce topics, feel free to join the Global E-Commerce Summit group on LinkedIn.  You can also subscribe to the NRF Global SmartBrief free daily email newsletter.

The most interesting trend for the online folks is likely this one:

#8: When looking at store sales, consider the Internet. The web will influence one in three holiday purchases this year, and retailers are using the Internet not only as a sales channel but also as a marketing vehicle. (Those of you at the Shop.org Summit who heard Terry Lundgren’s keynote got a first-hand account of how this happens at Macy’s.) Keep an eye out for Shop.org’s eHoliday survey, which will provide more insight on how people will to shop online this holiday season as well as what online retailers are planning. Hint: hello, social media!

Other holiday-related items that might be appealing:

• A short video of how different shoppers plan to compensate for the economy this holiday season
• Audio from the briefing, if you have 45 minutes to listen to the complete Top 10 rundown
• NRF’s first holiday survey, which outlines shoppers’ holiday plans

A couple of highlights:

While many retailers would probably like to put behind them the past year as quickly as possible, fully 87% of the online retailers we surveyed noted that their eCommerce business in 2008 was, in fact, profitable – and for over half it was actually more profitable than in 2007. When we probed how retailers accomplished this feat, over half credited putting a strong focus on preserving margin. While increased promotions also played a role, retailers played up the “value” message on their Web sites, worked hard to grow market share, and targeted profitable transactions and/or customers, among other measures.

Site conversion rates actually increased for almost half of retailers surveyed; while there is still work to do for everyone when it comes to shopping cart abandonment, returns on average are still respectable. And while over half of these retailers believe the economy should improve somewhat in the next year, they’re largely sticking with or even slightly lowering their outlook for their business for the next year.

True multichannel operations are increasingly a reality, not just a goal, for many retailers. Whether sharing product or branding imagery across channels, tapping email to promote in-store events and specials, or using marketing messages to distinctly promote multiple channels, we see those old channel silos slowly starting to crumble in earnest. And it’s not just a breakthrough on the marketing side of the house – executives in numerous functions are increasingly responsible and rewarded for driving results across multiple channels.

Finally, social media – retailers are, it appears, a pioneering bunch (and, we found, not because senior management is pressuring them on this point). If a retailer isn’t already on Facebook or tweeting, it’s likely on the drawing board for either the remainder of this year or certainly next. Two-thirds of retailers surveyed noted that the ROI from social marketing initiatives may be as yet unclear, but almost as many agreed that the reason they are pursuing them is because “it is a great time to experiment and learn more about what they can do.”

Shop.org Members can download the full report now. Be sure also to check out Ellen Davis’ blog from the Annual Summit about Sucharita Mulpuru’s keynote presentation that referenced some of these SORO findings along with much more.

We’ll wrap up the series of posts we’ve pulled together this year on international e-commerce by highlighting some of the dialogue that the study stirred up.

One of the best comments came from a CEO-guy across the table who attended the session where Jim Okamura hit the highlights of the study and interviewed the esteemed panelists.  He had that slightly worn look one has at the last session of the last day, but he was totally into the idea of going global.

Finally he looked over at his VP of e-Commerce and said “Let’s just do this.”

The International Growth Story

Chris O’Neill, who runs Google’s retail practice, was a welcome opening host for the session.  He set that stage nicely by commenting that:

• Well over 50% of Google’s growth is from markets outside the U.S.
• In order for Google’s CEO to approve any program, it must have a global plan
• From an organizational perspective, discussions about international initiatives often revolve around the trade-offs between centralization and de-centralization

What should we watch for on the international front? According to O’Neill, innovations in payments “in a world without the financial payment infrastructure the U.S. takes for granted.”

And stay tuned for how machine translations will fulfill the vision of a border-less e-commerce landscape and where advancements in analytics will leverage data to understand international customer needs that are not being met.

A New Chapter in the Customer Experience Saga

Of the many barriers the study highlighted, the one that requires the most urgent attention is the generally poor online experience that most international shoppers encounter, an ironic similarity to the early days of e-commerce in the U.S. the study points out.

Another key finding was that an expanded range of strategic options has replaced the “all or nothing” mindset that until recently prevailed among international strategists.  Each option has its own different risk/reward profile and collectively, they provide online retailers and consumer brands greater strategic flexibility, which is critical in today’s challenging retail environment.

A “middle” stage of international e-commerce expansion is emerging, which the study calls the “Participatory” stage.  Aided in part by the emergence of “sell-and-ship” solutions providers, this stage offers online retailers a low-cost, low-risk way to dramatically improve the international customer experience while also ramping up global sales.

Global Logistical Expertise is Evolving Regionally

An interesting ancillary finding emerged on the expo floor at the Summit.  As one visited the vendors that are opening doors to international e-commerce, one found that those with logistical expertise currently tend to specialize in different regions of the world.

Not surprisingly CanadaPost/Borderfree excels in Canada while Pitney Bowes (e4x/fiftyone’s logistical partner) delivers the goods throughout Europe.

Access Technology Solutions has built a sophisticated network of trade channels and customs brokerages throughout Asia-Pacific. In fact you can ship express packages from the U.S. into Japan for about what it costs to ship from California to New York. And it can get there quicker.

Meanwhile Borderjump/Aeropost is fulfilling thousands of international orders daily throughout South America.  Look for some consolidation in this sector in the year ahead, but for now, choose your market and go with the strongest player in that region.

Social and Mobile: Hot Panel Topics

No way can we hope to pack in highlights from the report’s findings plus insights from the panel session at the Summit into this no-longer-short post.  Several quick take-aways for you.

One of the biggest challenges of going global is balancing existing brand equity/controls with the need for local relevance.  The panelists agreed that tracking and measuring brand equity is tough globally, especially in the Asia-Pacific regions.

However, social media is evolving as a means to cost-effectively tap communities and facilitate word-of-mouth ─ and by doing so, to better understand how to adapt brands to local market preferences.

Panelists also agreed that having a mobile strategy is an essential component of going global.  Depending on which international market you target, expect 20% to 40% of the traffic coming to your site to originate from mobile devices ─ and plan for women to over-index on mobile.

Organizational Catalysts?

The panelists provided advice for e-commerce professionals trying to push their leadership to go global.  After conducting initial market assessments, focus on understanding the types of payments that are locally relevant.

Accept that payment models will not be one-size-fits-all.  In China, expect to accept at least five types of payment.  In Germany, more than half your holiday orders may go out with an open invoice.

Next Stop: Monaco, October 26-28th

It’s always intriguing when you put almost a year into conducting a study and then it’s done.  But of course research is never really done, in fact, we’ve barely written the first chapter of the international e-commerce expansion story.

The next chapters will provide different viewpoints.  The Shop.org Global e-Commerce Summit will offer a diverse collection of best practices and insights from leading global e-commerce professionals outside the U.S.

And look for a quantitative study exploring international e-commerce expansion from the J.C. Williams team next spring, with a focus on how online merchants of different sizes are mastering global e-commerce.

Until then, enjoy the International E-commerce Expansion Benchmark Study, the most uncreatively-titled report out there today.

Thanks,

The J.C. Williams Group

As part of the September 2009 American Pulse survey, BIGresearch asked consumers on behalf of Shop.org how they’re using mobile devices to help them shop. As one might expect, it’s still very much an emerging tool for shoppers, but if the results are indicative of where things are heading, retailers planning a mobile commerce strategy should keep in mind what consumers told us:

Who’s using mobile devices. Of the 6,976 consumers surveyed, a little over two-thirds noted that they regularly use a mobile phone / device such as an iPhone, Blackberry, or similar. Make that closer to three-quarters for women, people making over $50K per year, and consumers aged 18 to 34.

Mobile shopping alerts. Of those consumers who said they do use a mobile phone / device regularly, the vast majority noted that they had never used that device to receive alerts about specials or coupons from retailers. When probed how they would like to sign up for these kinds of alerts, three quarters flatly said they didn’t see themselves ever signing up for them… except for consumers aged 18 to 34, where just about half thought they wouldn’t sign up (i.e., the balance — not quite half — thought they *would* do so). And among those consumers who were interested in signing up for mobile alerts, about half didn’t have a particular preference for how they would sign up, while others said they’d prefer to text a short code to get a link, more so than typing a mobile Web site address into their mobile browser.

Shopping features that resonate with mobile users. For now, it looks like consumers aged 18 to 34 are a retailer’s best bet for shopping info via mobile device. Approximately half of 18 to 34 year olds surveyed noted that they would find very or somewhat useful product and price comparison information, store information (including location and hours), price information, in-store events and specials, in-store product availability, and coupons. In other words, they are using their mobile devices to shop offline more efficiently and with better information. Less important to the 18-34 year old crowd (only about one third of this group) via their mobile device are access to online specials, consumer ratings and reviews, or gift registries and wish lists for friends and family members.

And while women overall might still be catching up to the 18-34 year old group in this area, they see many of the same shopping features / applications as useful. (For more information about mothers online specifically – many of whom are avid mobile device users – see also the RAMA research and recap on this subject released last week.)

As always, Shop.org Members can access the full results of this survey from the Research & Resources section of the Web site.

Lundgren opened his keynote by walking through the history of Macy’s. The company began when there was no electricity, let alone Internet, he said, and has grown over the last 151 years to include 810 Macy’s stores, 40 Bloomingdale’s, and a vibrant online presence. That background helped set the stage for insights on what Lundgren referred to as “Macy’s 3.0,” which brings stores and the web together to create a dynamic shopping experience.

One of the biggest takeaways from Lundgren’s keynote was his insight on how the web drives store sales. Web business is expected to surpass $1 billion this year for the first time, he said, but the Internet is as much of a marketing channel as a sales tool. (That said, as a sales channel, the web is a bright spot: as of the end of August, online sales were up 13% this year, he said.)

In fact, Macy’s believes that $5 billion in store sales is influenced by its website, he said, demonstrating that “the power of e-commerce extends far beyond the keyboard and right onto the sales floor.” In addition to buying merchandise, customers can use Macys.com to locate store information and hours, pay a bill, and access the company’s catalogs.

As further proof of his confidence in the web’s ability to drive sales, Lundgren said the company has invested more than $300 million into its website on everything from new distribution centers to technology and personnel. He talked at length about the company’s “Find it In-Store” feature as well as a new “Search and Send” functionality where store employees can locate products for customers and have them shipped for free.

With much of the buzz at this conference about social media, Lundgren illustrated how the company was jumping in with both feet onto Twitter and Facebook. “I don’t think I need to preach to this group about the power and relevancy of social media,” he said, highlighting that the company gained more than 75,000 fans after launching a Facebook page just 60 days ago.

Lundgren also hinted at a foray into mobile, saying the company was planning to launch a robust Macy’s iPhone app later this year and said it would be “one of the most advanced iPhone apps of any retailer.”

As evidence of how Macy’s is using the web as a marketing tool, Lundgren elaborated on three recent company campaigns where the web played an integral role:

• Macy’s Make Over America, a partnership with Clinton Kelly of “What Not to Wear,” chose 15 women in 15 cities for a make-over. More than 30,000 women registered for a make-over, and the company published webisodes of make-overs,  a blog about style, and streamed video of its style shows live from each city.
• While 5.5 million people watched the Macy’s Thanksgiving Parade on the streets of New York last year on Thanksgiving Day, more than 50 million watched on TV. In addition, Lundgren said, 800,000 people have visited the parade’s website, which offered parade information, games, and a site for parade viewers to upload their own photos from the event.
• Macy’s Come Together initiative, aimed at alleviating hunger in America, uses a vibrant website where people can find out more information about the campaign, plus create invitations for their own dinner parties and view sample menus (thanks to Martha Stewart). The website also features some of Macy’s advertisements about the initiative, which features celebrities like Jessica Simpson, Mariah Carey, Usher, Donald Trump and Queen Latifah.

Tweets about his keynote during and after the session suggest that attendees were captivated by his insights on everything from why he doesn’t tweet (no time) to his philosophy on product reviews (“”If you get bad reviews on a product, guess what? The product is bad! Get rid of it.”).

After his remarks, NRF President and CEO Tracy Mullin spent about a half-hour asking Lundgren questions ranging from whether consumers have fundamentally changed to his thoughts on if department stores are dying. Read more from the Q&A.

Jayne will be at the Shop.org Annual Summit on Tuesday, September 22 to sign copies of her book.

Today is the day GenBuY is published, and I know it’s been quite a project! Tell me about some of your favorite parts of the book.

I loved hearing and writing the young people’s stories about their relationship with brands and stores. It’s amazing how much what they buy – or long to buy – says about what they’re going through at the different stages of their lives. No matter what I’ve covered, I’ve always been intrigued the most by why people do what they do – whether it’s commit crimes, take driving risks or collect designer jeans.

Some of the teens’ obsessions with, umm, undergarments – one young lady had several dozen bras in every conceivable color and pattern – video games or sneakers were both mind boggling and revealing from a marketing standpoint. How to create or tap into these yearnings for various fashions or technology? We came up with some answers.

I knew we were on to something when I learned what was up with the various collections of “stuff’ – from Webkinz to flip flops – my 9-year-old was amassing in our two years of research and what was driving her fledgling passion for fashion. I’m also far more prepared for at least the shopping side of the teen and 20-something years now.

In researching for your book, what surprised you?

It was quite stunning what powerful consumers these young people are. The more we researched, the more convinced we became that this was truly the generation retailers and marketers need to target to thrive and even survive in the new economy. Their clout comes from their purchasing power (given that they have their own money, plus parents, grandparents and others shopping for them); their love of brands and shopping; and their influence over household buys.

It was also surprising how much the business relationship with them needs to mirror a personal one, including respect for their opinions and involving them in decisions. That’s what some of upstart websites such as Karmaloop and Threadless do and we think it’s going to have to be the way more established brands deal with their Gen Y customers – and employees.

It’s just so important for marketers to understand what’s makes Gen Y tick because that’s what makes them click — and buy!

I’ve heard that the inspiration behind your book came from a Shop.org conference session. True?

Indeed. A few months after I started on the retail beat in 2006, the women at Resource Interactive pitched me to do an article on findings they were going to share at that fall’s summit on Gen Y consumers. I agreed (That’s unusual right there! I probably do 1% of the stories I get pitched. See below.) I interviewed some of the teens in their study and found their digital and retail lives fascinating. When consumer psychologist and marketing professor Kit Yarrow and I decided to write a retail-related book the next year, it was the topic I most wanted to examine more deeply. She agreed it was the most compelling topic we could cover when it comes to retail.

As an outsider looking in on the industry, what do you think retail has in store for the next six months?

Well, I read the same reports everyone else does, but am probably more optimistic by nature than most. I do informal polls of USA TODAY’s 2,000-member Shopper Panel regularly and find many are starting to spend again – at least the ones who are still employed — but most say their buying habits have probably changed forever. Will luxury retail ever return to its pre-recession levels? That’s hard to imagine. But I know I have my own bad case of pent-up demand and many of the subjects of our book – to the extent they cut back at all – are dying to get back to some serious shopping. So I do think sales will start to improve.

What do you love about retail? What frustrates you?

The passion people in this industry have for their work makes retail a far more enjoyable beat than most I’ve covered, such as airlines or antitrust. I do rather love to shop so it’s fun – though expensive! – to do interviews at stores. And it’s very cool to be hearing about the latest trends in fashion and merchandising and to be able to call it “work.”

That said, it is frustrating – and perplexing – that many retail executives are so reticent about talking to the media, particularly when there is no shortage of “experts” out there ready to give their take on what retailers are doing right or wrong. I’m surprised and disappointed more don’t take the time to get to know reporters before they’ve got big news to pitch or bad news to try to spin. As it is with consumers, it helps to have a relationship with the media.

As a retail reporter for the last three years, you’ve undoubtedly spoken to a lot of retail executives. Can you tell me which interviews were the most enjoyable for you?

I loved hanging out with the loss prevention guys – at Bealls in Florida – and interviewing Target and Montgomery County police officials when I did a retail theft cover story a couple years ago. The thieves’ brazenness is horrifying, yet riveting. Unlike me, however, the LP folks aren’t exactly fascinated with why the bad guys (and women) do what they do. They just want them to stop stealing!

Farooq Kathwari of Ethan Allen has to have one of the most interesting life stories in retail and he’s a very nice person to boot. Johnny Morris of Bass Pro Shops (look for my profile on him coming this month!) has got to be the most down-to-earth CEO on the planet.

With the holiday season nearly upon us, I’m sure your email in-box will soon be overflowing with pitches from retailers and vendors. What advice do you have for companies who want to make a splash in the press this holiday season?

Keep an eye out for trends you may be a part of and pitch an “idea,” not just your company or product. For example, watch what your consumers are buying more of this year than last. Last year seemed to be the year of the practical and the comfort-giving gift. What will the theme be this year?

When you pitch your company, put it in a larger context. Newspapers, like most media, have shrinking staffs and reporters often don’t have time to connect the dots. Few of us have the time or space to report incremental developments at individual companies that don’t have a larger meaning or impact on consumers or business.

Do something that is truly different and newsworthy. Step back from your day-to-day job and think what your company might be doing that would be interesting to an outsider. Or ask new – and/or young! – employees if there’s anything going on that seems unique or newsworthy. I’m sure there will be stories about the retailer that stays open for the most days straight or puts up the first Christmas tree (which has no doubt already happened), but how about some truly new angles on the holidays this year?

And let’s try the reverse: what should companies who want to get their name in the paper never do?

Try to get reporters like me to promote their promotions. Sure, they might get lucky and a deal will get mentioned in a larger story. But PR pitches are far too often thinly-veiled (or not veiled at all) ad copy. I would have gone into advertising or marketing instead of journalism if I wanted to promote products!

It seems the Internet is playing a role in just about everything these days. Can you talk about how the web has changed the newspaper world, specifically USA Today?

Print reporters now have to think much more visually about their stories and consider things including interactive graphics and video. I even shoot my own video now. (Not very well, maybe, but it’s a start!) Our already-thin staffs feel even smaller now that many colleagues are blogging almost full-time. That can make it harder to cover the news, but helps bring new visitors to the site and the blogs give us all another forum to write in, which is exciting. And, of course, everything moves more quickly now with 24/7 news so it has sped up the news cycle. That doesn’t have as big of an impact on the retail beat, but it sure keeps the economic and political reporters on their toes.

How do you get your news, specifically retail news?

I read both SmartBriefs every day and love them. It saves a lot of time I might otherwise spend combing other print and online publications to keep up with trends. I scan the wires, read the major newspapers and get press releases on email from most major retailers or go to their websites when I’m working on a story.

You’ve made no secret about how much you love shopping. Where are some of your favorite places to shop, and what are your favorite things to buy?

I don’t want to name names, but I will confess to loving high-end department store outlets and off-price shopping. Some people say it’s too much work; I think the hunt is at least half the fun. I’m on a few of those discount designer email lists and get some great ideas that way but it’s just not the same for me as sorting through all the stuff in the store and feeling for myself whether that “buttery soft” cashmere really is. Clothes shopping is my favorite, but I’m going to have to return to furniture shopping soon. All these hours at home working on the book has reminded me it’s time to redo the living room.

If you were forced to take a three-month, paid sabbatical, what would you do?

I’m a passionate (not crazy!) cat lady. We foster homeless kittens and have a few of our own. So I’d take a tour of some spots out West I haven’t visited, do some writing and take my daughter to Best Friends Animal Sanctuary in Utah to volunteer. Lest I sound too do-gooderish, I’d also map out the closest spa and designer outlet mall and hit them as well.

Now that you’re no longer writing a book, how will you fill those extra hours?

Helping sell it, spending time with my somewhat-neglected family, and shopping — of course!

Connect with Jayne:

• Facebook
• Twitter
• LinkedIn
• Email: jodonnell@usatoday.com or Jayne@genbuy.net

This year we have expanded our “Doctors” to 14 throughout each afternoon and reservations are going fast.  I invite every retailer who is attending the Summit to take advantage of this great feature.  To learn more about each Doctor and to reserve your time in advance, plesase visit our Doctors Is In Page at the Shop.org website. 

Also, just as a reminder we are still accepting questions to ask our CEO keynote speakers in the interview portion of their program.  Simply leave a comment on the blog or write me directly at the email address below to submit your question.

Thanks!

Larry Joseloff
VP, Content
joseloffl@shop.org

As always, Shop.org members can download the complete results of how online shoppers vary from shoppers who will only make back-to-school purchases in stores.

BTC shopping to date. One fifth of all back-to-college shoppers have finished their shopping so far, though the average BTC shopper had completed less than half of their shopping. Of all BTC shoppers, fully 42% hadn’t started at all (vs. 32% for online BTC shoppers specifically). As with Back to School shoppers, retailers will find many consumers as yet very receptive to BTC shopping messages.

Where they’re shopping. At this point, one quarter of back-to-college shoppers anticipate completing this task online. Somewhat less so than for back to school shoppers, not quite half of BTC online shoppers will also visit discount stores, while approximately a third will shop in department stores and clothing stores. One quarter of online BTC shoppers will also head to electronics stores.

Influence of coupons, sales and promotions. 41% of BTC shoppers indicate that coupons, sales, and/or promotions have influenced those BTC purchases that they have already made. General BTC shoppers cited coupons (39%), advertising inserts (31%), word of mouth (31%) and in-store promotions (23.7%) as media that influence them to shop in a particular store. Among online BTC shoppers, those influences are even higher: for example, coupons were cited by almost half as influencing their choice of retailer, and TV/broadcast appears to be a somewhat more influential medium than for BTC shoppers in general.

Favorite Web sites. Finally, back to college shoppers were asked to write in the name of their favorite back-to-college retail Web site. While there were numerous mentions, Wal-Mart and Target led the pack (much as for back-to-school shoppers), followed by Amazon.com, Staples, and JCPenney, among others. Did having a favorite BTC Web site influence actual purchases? For just over a third (whether all or online specifically), there was no particular impact as they already “regularly” shopped at that Web site. For online BTC shoppers, however, over a quarter said that favorite Web site did motivate them to shop there – almost twice as many as for all BTC shoppers.

As always, tell us what you think — do post a comment below or drop us a line.

On Tuesday afternoon we will begin with a in-depth look on how retailers such as Fandango, Harrah’s Entertainment, and Moosejaw are succeeding today using mobile commerce.  This is not a session where we will look into a crystal ball, as mobile commerce and mobile marketing is happening right now and we will learn what retailers are doing today.   Right after our mobile session, “The Cutting Edge” track will continue with a session that our attendees are already talking about titled “Twitter and the Social Media All-Stars.”  We all know social media is popular and important, but now we will look in detail how retailers such as Overstock, 1-800 Flowers, and Drugstore.com are using Social Media to grow their business and share some mistakes they have made so hopefully you can avoid falling in the same trap.   On Wednesday the 23rd The Cutting Edge track will continue with a look into how retailers are using Widgets and other similar applications in creative ways followed by a exciting session featuring the new rules of relevance and innovation in email marketing.  Each day will end with a series of round tables on related topics moderated by speakers and other industry experts.

“The Cutting Edge” track is not the only place where you will find inspiration as our “Customer Experience” track is also featuring can’t miss sessions that will broaden your horizons and provide fresh perspectives on your current retail practice.   I am especially excited about our “Reinventing Online Retail: Radical Business Models That Are Paying Off Today” session that is moderated by VC Joshua Goldman and features the CEOs of two of the most innovative and successful retailers out there today:  woot! and The Gilt Groupe.  They will discuss what lessons can be learned from these companies and if multi-channel retailers can implement some of these approaches to attract new customers and stimulate loyalty from existing customers.   On Wednesday the 23rd, the Customer Experience track will continue with a unique session that recreates one of the most popular sessions of the 2006 Annual Summit.  Industry expert and top-ranked Shop.org speaker Doug Mack will sit down with three senior level retailers to discuss whether the predictions they made three years ago about online and multi-channel retail came true and what this same group will be talking about three years from now at the Summit.  These industry veterans bring diverse perspectives—and will share their insights into how the online shopping experience may need to change over the next few years to keep up with growing consumer expectations and to win the increasingly fierce battle for existing shoppers. 

With all of this diverse and valuable content, it has become even more important to bring a variety of members of your organization to the Summit.    I would also like to offer you a personal walk-through of the agenda at the Annual Summit to provide more details and help guide which members of your team should attend the specific sessions.   You can contact me below and we can set up a short call.

Thanks and the Summit is only a month away!!

Larry Joseloff
VP, Content
Shop.org
joseloffl@shop.org
202-661-3057

As always, Shop.org members can download the complete results of how online shoppers vary from shoppers who will only make back-to-school purchases in stores.

BTS shopping to date. On average, families have completed not quite half of their back-to-school shopping to date; almost one third has not yet begun this task at all, and only 14% can say they are fully finished. Clearly, consumers will be receptive to back-to-school offers and messages from retailers for some weeks to come. There appears to be almost no difference in completion levels between shoppers who plan to complete their back to school shopping online specifically and those doing so in other channels.

Where they’re shopping. Given the imminent start date for numerous school districts around the country, it was perhaps not surprising to see that just 12% of consumers planned to complete their remaining back-to-school purchases online. Almost two-thirds of online shoppers plan to head to discount stores for this purpose, though department stores, clothing stores and office supply stores (among others) will also see traffic in the coming weeks.

Influence of coupons, sales and promotions. Of those consumers who had done any back to school shopping so far, about half said that those purchases were influenced by coupons, sales and/or promotions. Indeed, online back to school shoppers noted that coupons (59%), word of mouth (47%), in-store promotions (46%), and advertising inserts (46%) influence them to shop at a particular store. Possibly reflecting the need to finish this task relatively quickly, one quarter of online shoppers noted that the traditional newspaper and TV/broadcast both are also important influences, beating out slightly advertisements on the Web and via email.

Favorite Web sites. Finally, shoppers were asked to write in the name of their favorite back to school retail Web site. While there were numerous mentions, Wal-Mart and Target led the pack, followed somewhat more distantly by JCPenney, Staples and Kohl’s, among others. Whether these Web sites actually motivated shoppers to buy from those retailers, however, is more open: almost one third of all shoppers said it had no specific impact as they regularly shop there already, while just under one fifth said it did indeed motivate them to shop there. For online shoppers, however, the influence was stronger – given that these shoppers have committed to completing their back-to-school shopping online specifically, well over a third of these consumers were motivated to shop from a retailer whose back to school Web site they liked.

Watch soon for a similar update on Back to College shopping. As always, let us know your thoughts on this topic.

This week, we’re “Talking With…” Terry Lundgren, who started his career as a trainee with Bullock’s department stores in 1975 and is now the Chairman, President and CEO of Macy’s, one of the most iconic retailers in the world. Here’s what Terry had to say about Macy’s plans for the holidays, what he loves about retail, and the importance of business leaders listening to young company talent.

You’ve been in the retail industry since 1975, when you started out as a trainee with Bullock’s, a division of Federated. We know the industry has changed dramatically, but what remains the same?

When I was a buyer at Bullock’s in Los Angeles, I knew every store manager, every department manager and most of the best sales associates. I even knew the guys in the distribution center because I needed to make sure that my merchandise received priority placement on the delivery trucks, especially when I was running an ad in the newspaper, which was often. I could stay very close to the customer with all of these points of contact. But my span of control was only 20 stores and they all were within a 90-minute drive or a one-hour flight.

With our My Macy’s initiative, we are recreating a version of what we had 30 years ago – reduced span of control for district merchants and district planners to be in stores constantly, listening to the voice of the customer. This close connection to our customer was, and always will be, the key to success for any retail organization.

NRF’s back-to-college survey found that department stores remain the shopping destination of choice for 18-24 year-olds. Has Macy’s made a conscious effort to reach out to young adults?

Absolutely. We work hard every day to bring a high level of fashion and excitement to our juniors and young men’s businesses. We’ve also stepped up our assortments for young professionals just entering the workforce through brands like BCBGeneration, as well as through more premium denim and other products that appeal to this younger generation. We just launched Rachel Rachel Roy exclusively at Macy’s, which is targeted to this young customer and it is selling extremely well. We are reaching out to this customer through social networking, including Facebook and Twitter, as well as local fashion and culinary events. Our national advertising, which features design celebrities such as Sean Combs and Jessica Simpson who have product in our stores, positions Macy’s as a preferred destination for younger shoppers.

Can you share any thoughts on the upcoming holiday season?

Especially in this tough economy, we inspire customers during the holidays and encourage them to “Believe” in the spirit of the season. Last year, we asked children to bring their letters to Santa to any Macy’s store and place them in our special letter boxes. More than 1 million of them did so, and we contributed $1 million to the Make-A-Wish Foundation, making us the largest single contributor to this fantastic organization that grants wishes to children with terminal illnesses. We will have a similar focus again this year.

The holidays are a very special time in our society, and it’s a time when Macy’s really shines – beginning with the Macy’s Thanksgiving Day Parade. Millions of people around the world also watch “Miracle on 34th Street” at Christmastime. And this year, we are going to launch a new animated movie based on a true story of a little girl named Virginia who seeks to discover if there really is a Santa Claus. Macy’s is a part of the fabric of the holiday season in America and we take our role very seriously – not only as a place to shop, but also as a place to experience a magical time of the year.

When you received the Gold Medal Award at NRF’s Annual Convention several years ago, you talked about the importance of cultivating young professionals within the Macy’s organization and said you meet with a select group of young talent on a regular basis. What have you learned from those meetings and have you made any changes because of them?

I learn a lot each time I meet with a group of associates who are early in their careers with Macy’s. I work hard to devote at least 30 minutes a week to them, and it is among the most rewarding things I do. These individuals are brimming with good ideas and insights we can apply to our business, and we do take action on them. For example, the development and rollout of the BCBGeneration product for young career women, as well as the Rachel Rachel Roy launch, were directly related to a meeting of my “Breakfast Club.” The group told me we had a gap in our assortment for this younger working customer, which included our own trainees and assistant buyers, and we moved very quickly to fill it.

Even in the midst of a challenging economy, Macy’s continues to grow. Was the decision to continue to open stores in this environment a difficult one?

I’m going to be perfectly honest with you. We planned these new stores a long time ago so they were already under construction when the great recession began to hurt the economy. Our focus today is to drive higher sales from existing locations. That’s the objective of our My Macy’s localization strategy. But we also are pursuing a few select opportunities to open new stores where Macy’s and Bloomingdale’s are under-represented. There are very few new shopping centers being built or opened today in the U.S. In the future, we have a number of potential avenues for growth, including overseas, and we are opening the first international Bloomingdale’s in Dubai in spring 2010. But right now, our energy is being focused on increasing comp store sales. We believe there is a lot of opportunity to take market share and to grow Macy’s and Bloomingdale’s in the locations where they already do business.

To whom do you look for inspiration?

Internally, I look to our own people. There is so much energy and enthusiasm within our company today, in spite of the economic environment. I truly believe that we have the best and the most talented team in the entire retail industry at both Macy’s and Bloomingdale’s. We have always had a good team but today we have a spectacular team and they have a great deal of respect for one another. Our people have great ideas and a tremendous amount of passion for the business. I get excited and inspired every time I visit a store or talk to a group of our people.

Externally, I take whatever time I can to talk and listen to the senior leaders of other great American companies, especially those in consumer-driven industries. I am involved with a couple of outside organizations and have developed friendships with some of the most respected CEOs in the country. They always have a lot of great insights and I consider myself a student of business, so I just eat it up. I would like to think that they get a little something from my own insights and experiences at Macy’s and Bloomingdale’s.

Tell me something that’s especially vivid from your first days at the company.

I was recruited to Bullock’s in Los Angeles as I was graduating college at the University of Arizona. I had several other job offers, but what struck me about Bullock’s was the unbelievably talented people I met in the interview process and potentially would be working with and for. That’s what attracted me to retailing and what has kept me in this industry.

Retailing thrives on smart, aggressive, fast-moving people who know how to spot and capitalize on opportunity. You are responsible for your own P&L statement early in your career as a buyer or a store manager. I am very proud of the fact that Macy’s, Inc. is known for having the very best training programs, which in turn has attracted the best people in retailing.

Give us a snapshot of something attendees might hear during your keynote next month at the Shop.org Annual Summit. [Shop.org retail members, remember to claim your company's free pass to the Summit by August 14.]

I’ll be talking about the power of multichannel retailing – the convergence of stores and online. It’s something we’re doing very well at Macy’s. Our multichannel strategy mirrors the strengths of Macy’s – fashion, brands and excitement. I plan to talk about the opportunity to capture more of your customer’s open-to-spend.

You’ve spent more than 30 years in retail. What do you like most about this industry?

The constant change. You can’t stand still in retailing. You must always be innovating and pushing the envelope. The competitive landscape is always changing. The customer is always changing and evolving, and so must we. I like being challenged in this way. I just love this business. It’s a privilege to come to work every day and do something I absolutely love to do, even in this very difficult economic environment. We get our performance review every day at the cash register. I love the challenge because I know our strategy and our organization structure is right and we have the talent to win.

How do you unwind?

I enjoy spending time with my family and my friends. I also have always played sports. I love the friendly competition. These days, I prefer golfing – it’s easier on my knees than basketball. I enjoy exercising in the early morning and I’m also an enthusiastic spectator when it comes to football, baseball, basketball, tennis and just about every other sport.

If you could take five people in the world to dinner – past or present – who would you take and why?

Funny you should ask. At Macy’s, we have a drive this fall that encourages people to “Come Together” over dinner to raise funds for local food pantries around the country. Our plan is to contribute at least 10 million meals for those in need. In this spirit, I plan to have dinner with a group of those well-known celebrities whose merchandise is sold at Macy’s – Jessica Simpson, Queen Latifah, Mariah Carey, Usher, Martha Stewart, Emeril Lagasse, Tommy Hilfiger and Donald Trump – so we can set the example in raising funds. They all will be appearing in the Macy’s television commercial this fall to promote “Come Together” and to help eradicate hunger in America.

Finish this sentence: “I can’t start my morning without…”

Some kind of exercise followed by a Grande Black Pike Place (Howard Schultz will know what that means) and reviewing the previous day’s sales report.

In the July 2009 American Pulse survey, conducted by BIGresearch on behalf of Shop.org, we asked consumers, “How often do you use online video when researching or buying products online?” Certainly, video for shopping purposes online appears to be as-yet nascent: just 12.1% of all adults (18+ years of age) surveyed indicated that they “regularly” use online video for shopping purposes.  That said, however, another 46% said that they use online video “occasionally” for online shopping purposes. 

When we probed a bit further, asking how they’ve used video content to date for shopping purposes, it looks like video is quickly becoming a de rigueur site feature in consumers’ eyes. Half of consumers surveyed agreed with the statements, “Online videos produced by manufacturers are helpful in explaining product features and how the product works” and “I have watched online videos for products that I purchased online”. One quarter said they had watched online videos for products that they researched (though not necessarily purchased) online. Unlike the case for customer ratings and reviews, there appears to be some caution about consumer-generated product videos – less than one fifth of consumers professed to trust those.

For anyone inclined to think that it’s mostly cool young-somethings (18 to 34 years of age) tapping online video for shopping needs – not so fast. The older the consumer, the more likely he or she is to turn to online video to understand product features and/or how the product works (perhaps the cool young somethings get some of that info from knowledgeable friends or family members). And while younger consumers are somewhat more than inclined to trust consumer-generated videos than are older users, even they don’t trust these as much as they do videos professionally produced by manufacturers or retailers themselves.

One last note: online video in some cases appears to influence purchases offline as well (i.e. in a brick and mortar store). For example, one fifth of men surveyed noted that online video had directly influenced their decision to buy a specific product offline. Multi-channel marketing and merchandising at work.

For a full summary of the survey data results, Shop.org members may download those from our site. In addition to age, the data results are also segmented by men/women and income.

Any e-commerce related video content / campaigns you’ve seen that you thought particularly effective? Which retailers or travel companies are effectively leveraging online video in offline channels?  Tell us what you think. 

You’ve had an interesting career, first with Tower Records, then Borders, and now your current employer, ForeSee Results. What are the similarities between those roles? How about the differences?

There’s actually been some nice continuity between the three positions. I was at Tower for 20 years, working my way from store associate to buyer to store manager to some IT roles and then finally, with all my retail and technology experience, to building up TowerRecords.com when e-commerce came around.

When I finally left Tower to join Borders, I saw a lot of similarities in the businesses, for sure. Tower was primarily music and video, but also sold books. Borders was basically the opposite as far as focus, but the general business was pretty similar. Tower was private (with some public debt toward the end of my time there) and Borders was public, so I did notice more short-term pressures related to public reporting at Borders than I saw at Tower. Dress code was definitely different. At Tower, the dress code was basically “Don’t wear swimsuits.” Borders was a little more conservative than that.

ForeSee Results is a departure of sorts for me in that we’re a vendor. However, my role as Vice President of Retail Strategy calls for me to very much remain a retailer, which is great because that’s what I’ve been my entire adult (and even a little pre-adult) life. I don’t want to lose that exciting retail feeling.

Since I’ve been a ForeSee customer since 2002 at Tower and again during my time at Borders, I feel very comfortable with the ForeSee way, and I really love what the company does and stands for. In fact, during my search, I told myself that I had three objectives for my new position: (1) I had to believe in what the company does; (2) I wanted to learn something new and have plenty of great challenges; and (3) My “Miss America” clause: I wanted to be in a role where I could make the world a better place. I really believe that I’ve found all of those with ForeSee Results, and I’m really excited to be part of the team.

What were the first three things you did when starting your new job?

Well, besides filling out lots of HR paperwork, one thing I always try to do when starting a new job, whether it’s a new position with the same company or a new position at a new company, is write down my first impressions. It’s the only time I’ll have them, so I want to make a record of them because I find that over time I’ll start to hear and ingest all the reasons things are the way they are and I’ll forget how I felt about things that might not seem right to a new employee or a new customer.

I have this theory I call the Tree Stump Theory. It goes something like this…If we were to stick a big tree stump in the middle of one of our conference rooms, everyone who walked in would notice it and ask about it. Someone would give us a compelling reason why it was there, and then we would move on with our meeting. The next time we met in that room, we would notice the stump but not ask about it. Eventually, someone might stick a tablecloth on it, and we would start to adjust our seating to work around the stump. Before long, most people might not even remember why it was there to begin with. It would be hard to miss for anyone new to the room, though. So, it’s nice to reference my first impressions list from time to time to help me see things freshly again, even when they’ve become ingrained.

And by the way, there are both positive and negative tree stumps. I’ve found many times that there are great things at companies and on sites that have been undervalued over time, and it’s just as easy to lose sight of those as it is the negative things.

I also definitely like to spend time meeting everyone on the team and really listening to their perspectives and sharing some of my stories from the world of retail. Last and certainly not least, I’ve been talking to customers to get their perspectives and really try to understand their needs and expectations.

What are you most proud of from your tenure at Borders?

I’m really proud that we brought Borders.com back home to Borders. I love the site and some of its innovations, including the Magic Shelf and some of the excellent video content. I am unbelievably proud of the team of people who worked day and night to bring the site back. It was a tough, tough project that had to be done in a very short period of time. People sacrificed major portions of their lives and time with family for the cause, and I could never thank them all enough for what they did.

I’m also really proud of Borders Rewards. Before building Borders.com, I first led the team that created and launched Borders Rewards. It has since become one of the largest loyalty programs in specialty retail, and it far exceeded any of our early expectations. It was very cool to work on that effort.

As someone who recently transitioned into a new position with a new company, what advice do you have for online retail employees who may be in between jobs?

I think the first thing I would say is stay positive. I’ve been impressed with how many companies seem to be hiring e-commerce roles, even in this economy. While it may not seem like it at times, this can be a great opportunity.

I suggest communicating with everyone you know to let them know your status and what you’re looking to do. My first week after leaving Borders, I spent a LOT of time sending emails and making phone calls. I went through my contact lists, LinkedIn, Facebook, etc. and tried to find everyone I could think of that might be connected to someone who knew something about a job. I talked to former co-workers, vendors, friends, neighbors, friends of friends, people at the gym, etc.

All of that initial outreach definitely generated opportunities, and I pursued them all with vigor. Even though there were some positions that didn’t seem right, I still chased them down. I figured if nothing else, the effort would help me refine my story and my interviewing skills — and it did. I got very good at telling my story and hitting all the right points.

I also “interviewed” myself. I wrote down all of the interview questions I could think of, and then I took some time to write down my answers to each. As I heard new questions during my process, I added them to the list. I regularly studied this sheet before each interview as part of my preparation.

Of course, I also did lots of research on each company and each interviewer and created a set of questions to ask during the interview. In addition to questions, I found it was helpful to come up with some ideas for how to improve the business. I found that even if interviewers weren’t ready to take on each of my ideas, they really appreciated the thought that went into them.

You’ve been in this business, in varying roles, for a long time. For someone who is just getting started in retail or e-commerce, what advice would you give them?

I think it’s really important to listen and learn as much as possible. Read blogs (the Shop.org blog, grokdotcom.com and Six Pixels of Separation are really good ones), subscribe to newsletters like SmartBrief and Internet Retailer, and more than anything talk to customers. If you’re working for a multichannel retailer, find time to work in some physical stores. Multichannel or not, find time to take some customer service calls.

I’m also a big fan of business books, so I would recommend reading lots of them. You may not believe everything you read, but it will help expand your thinking, and I think that’s always a good thing. One I read this year that really got me thinking was “Fooled By Randomness” by Nassim Nicholas Taleb and one of my all-time favorites is “Moneyball” by Michael Lewis.

Optimists, myself included, are fond of saying that retailers who make it through this recession will be stronger for it. Do you agree with that? Can you think of anything specifically in e-commerce that will have benefited in the long-term from the current economy?

I definitely believe businesses that make it through this storm will be stronger for it. The recession has caused us all to find those elements of our businesses that are most critical to our success and relentlessly focus on those elements, not on the peripherals. Costs are more in line with sales today, and as revenues start to return the bottom line should benefit. The key will be to maintain that focus even when better revenues tempt us to take our eyes off the ball.

I think e-commerce is benefiting from the realization at many retailers that the website is about much more than the buy button. Online marketing vehicles are more efficient, for the most part, than their traditional counterparts, and retailers are starting to see that those vehicles can drive traffic to brands overall, online and offline, and the web plays a central role in both acquisition and retention of valuable customers.

You recently blogged about a quote you read, that “defending the status quo is what kills companies.” The e-commerce crowd is generally a pretty forward-thinking bunch, but how can smart retailers ensure that progress is not hindered because they’ve “never done it that way”?

Ha! Thanks for reading. I think everyone is susceptible to defending the status quo, especially when things are going well. E-commerce is generally going well, even in these times, and its future is bright. But good times are exactly when it’s important to start thinking about changing for the future. The world is constantly changing, and in e-commerce it’s changing faster than anywhere else, so we have to be even more ready to change directions. The barrier to entry at a global level in e-commerce is obviously significantly lower than in the physical world, so innovative new business models have a much better chance at success than in the past. In the blog post, I talked about how quickly Zappos went from an idea to a billion-dollar company on the strength of a new model. Amazon and iTunes are other obvious examples. As e-commerce continues to mature, we will become more susceptible to resting on our laurels, at least to some degree. We cannot rest.

You mentioned the Shop.org blog as a resource for people looking to learn more about e-commerce. Tell me about your history with Shop.org.

I’ve been involved with Shop.org since my days with TowerRecords.com. I find the organization overall to be incredibly valuable. The content at the shows is always top-notch, and I’ve learned so much by attending. Even more than learning, I’m always inspired by what I see and hear. Sometimes, I’ll see a presentation that wouldn’t seem relevant to my business, but I’ll hear something that will spark an idea. I also really love the round tables. I’ve hosted lots of them over the years, and I’ve never been disappointed in the conversations. I like that they provide a comfortable but somewhat structured point for conversation of particular topics. Of course, the absolute best conversations take place at the conference bars. I’ve had some doozies in there!

I also really appreciate Shop.org’s advocacy for the industry. I’ve been lucky enough to be involved with the Policy Advisory Group, and I’ve been impressed with how the Shop.org team is working on behalf of its members to deal with some thorny issues in Congress.

What’s the best part about working in retail?

To me, bar none, the best part about working in retail is finding ways to help customers. I always loved making customers happy when I was working in stores, and I’ve never lost that feeling. I think retail is really a service industry, and when we do things that truly delight customers we actually make the world a better place.

Connect to Kevin:

• Twitter
• Blog
• LinkedIn
• Email: Kevin.Ertell@ForeSeeResults.com

59 retailers participated in the Q2 Online Sales Flash Survey, conducted from July 1 to 7, 2009.  Respondents represented a mix of business type (variations on multichannel, branded manufacturers, pure plays) and annual Web business size.  As usual, we asked simply, “How did your gross online sales (top line) for the period April 1, 2009 through June 30, 2009 perform relative to the same period last year (April 1 through June 30, 2008)?” 

Shop.org Members can download the full data and PowerPoint summary results from the Web site; following are a few highlights:   

• Fully 59% of retailers surveyed reported that their gross online sales had indeed grown for the quarter compared to the same quarter in 2008.  9% reported flat sales (in this economy, nothing to sneeze at), and one third (32%) reported sales decreases. 
• Average YOY quarterly growth across all retailers surveyed was 11.8%
• Close to two thirds of large retailers ($100+ million in annual Web sales) reported revenue increases for Q2 2009 vs. Q2 2008.  Ditto for mid-sized retailers (defined as between $10 million and $100 million in annual Web sales).  Smaller retailers (under $10 million) struggled somewhat more, but half of those surveyed in this segment did in fact realize sales growth. 

Thanks to all retailers who participated in this quarterly (and entirely anonymous) survey!  We look forward to your participation in our next quarterly results survey the first week of October, shortly after the Shop.org Annual Summit.  And, as always, we welcome your comments and thoughts.