Retail Stores

The impersonal and often anonymous nature of the internet puts e-commerce stores at a disadvantage when compared to connecting with customers and reaching a level of  engagement like that of the perfect in-store experience. In general, online retailers rely on photography and merchandising to provide consumers with choices and convenience. However, as the e-commerce channel evolves, it's becoming possible for online retailers to leverage the piles of data available to personalize their digital stores  in a way that creates unique and personalized experiences for every customer. This is an advantage that brick-and-mortar retail doesn't have; physical stores can't be rearranged and customized for every customer, but a website can.

Express announced the opening of its first factory outlet store at the Tanger Outlets National Harbor in Washington, D.C. The U.S. specialty retail apparel chain plans to open approximately 30 additional factory outlet locations throughout the U.S. in 2014. "We're particularly excited about our outlet initiative, which represents a new format for Express," said Michael Weiss, the chairman and chief executive officer of Express. The factory outlet concept supports the retailer's growth strategy of becoming more accessible to the 20-something, fashion-conscious, yet price-sensitive customer. 

The internet has upended nearly every industry, but perhaps no category has undergone a more radical transformation than retail. Near-global access to the internet and speedy adoption rates of smartphones have spawned countless changes to the way we shop and how retailers compete. In the coming years, there will be many more changes, but here are three big trends to watch for:

Google has developed a way to match the ads you view online to the purchases you make offline by developing a program that tracks you all the way to the store. The In-Store Attribution Transaction Reporting in AdWorks’ pilot program lets Google tell online advertisers — which spend the majority of their budgets on Google — which digital ad views convert to direct in-store sales. "Clicks are just the beginning, and everyone knows that there's more value to tying ads to purchases," advertising technology company myThings CEO Benny Arbel said in a Wall Street Journal report. 

Wal-Mart's brand value is waning, as competitors like Amazon.com have dulled its low-price edge. By contrast, the savvy use of big data to customize shoppers’ wants and needs has catapulted the brand equity of retailers as disparate as Whole Foods and Macy's. That's some of what Interbrand's 2014 Best Retail Brands report revealed. The annual report from the brand consultancy, released today, ranks the 50 most valuable U.S. retail brands and the leading store brands internationally.

At Nordstrom, customers drive innovation, and the retailer continues to dream up, test and execute improvements to its customers’ shopping experience. One tool at its disposal is the Customer Experience Center — a prototype space that brings salespeople, vendors and customers to one location to share feedback and thoughts on new concepts before they're introduced in Nordstrom stores. 

Whether purchasing a car, a pair of shoes or a computer, both brick-and-mortar retail and e-tail have very important roles in the world of commerce. Retail acts as the showroom, where consumers can experience a product for the first time, while e-tail allows them to build confidence in the price they pay for a product as well as research all of their options in a convenient, real-time format. Choosing one over the other forces your customers to choose, too. And in today's competitive retail world, they'll likely choose the brand that offers both options.

With retailers from Wal-Mart to Staples talking about building smaller stores, you'd think that's the direction the industry is heading. This is until you see what Restoration Hardware is doing. Restoration Hardware shares on Friday surged up to 14 percent in its biggest daily percentage gain since June after the retailer of luxury home furnishings erased fears that it would follow other retailers and report disappointing results after a shorter holiday selling season and wintry weather that led to store closings. Instead, it reported a fourth-quarter profit in line with its prior forecast.

Sales momentum is perceptibly slowing in most retail stores. This was noticeably true in 2013 when total retail sales increased by only 2.2 percent and GAFO (General Merchandise, Apparel, Furniture, and Other) sales decreased by 0.6 percent. These tepid numbers reflect consumer apathy and general economic concerns. Shopping malls no longer have surging crowds except on special event days like Black Friday. Reports indicate that the internet is making up for some of the lost store traffic. It's increasingly evident that the shift from shopping in-store to shopping online is permanent and still rising.

Nordstrom is bringing low-price fashion jewelry into its luxury department store chain with the hope that younger shoppers will follow suit. On Monday, the company will begin selling jewelry from BaubleBar, a popular online retailer. BaubleBar launched its website three years ago with the hopes of making fashion jewelry more accessible to the average shopper. With online traffic now at more than 1 million visitors per month, the founders have decided to expand the company's presence into traditional retail spaces, too.