Link: Subscription businesses, McKinsey

“The subscription e-commerce market has grown by more than 100 percent a year over the past five years. The largest such retailers generated more than $2.6 billion in sales in 2016, up from a mere $57.0 million in 2011.1 Fueled by venture-capital investments, start-ups have launched these businesses in a wide range of categories, including beer and wine, child and baby items, contact lenses, cosmetics, feminine products, meal kits, pet food, razors, underwear, women’s and men’s apparel, video games, and vitamins.”
Original source: Subscription businesses, McKinsey

Link: ‘Amazon-proof’ Home Depot builds on its DIY digital foundations

“Versus prior year, our online sales grew 21% in the fourth quarter and 21.5% in fiscal 2017, now representing 6.7% of our total sales. While we are seeing significant growth in our online sales, these online shoppers see the relevance of our stores as approximately 46% of our online U.S. orders are picked up in our stores”
Original source: ‘Amazon-proof’ Home Depot builds on its DIY digital foundations

Omni-channel at Target: 14% of 2016 sales were “digital,” with 68% fulfilled in-store

In 2014, more than 93% of our transactions took place in stores, less than 7% digital. That season we had just started shipping from a small number of stores. In 2015, that same timeframe, digital sales reached almost 10% of our total sales. We more than doubled our ship-from store-capability to nearly 500 stores. We fulfilled 41% of all our digital orders inside of a store.

For 2016, just a few months ago, just last year, digital sales climbed to 14%, more than twice what we did two years earlier. We double ship-from-stores again, more than 1,000 stores. Our stores were fulfilling 68% of our digital orders. We finished December with record digital growth, including record-breaking days on both Thanksgiving and Cyber Monday.

Always nice to see multi-year numbers.

Link

Retail: tech slow to enable omni-channel, Amazon is far ahead as a threat

…a survey of the top retailers in the US and Europe. About 75 percent of them said that despite all the unprecedented investments they’ve made in retail over the last several years, they feel ill-prepared to handle and provide omni-channel capabilities.

Meanwhile, it’s clear that you need so look at online as the starting point of most purchases: “60 percent or more of in-store purchases start online ‘through digital engagement.’”

Amazon is quick to enter new retail markets:

Amazon reports e-commerce growth of 30 percent, whereas core retail is growing at only 2 percent. Amazon Fashion launched in a “very nascent way” in 2002 – it’s now the biggest fashion player in the U.S. Amazon has spent about $17 billion dollars on R&D around e-commerce. Walmart has spent under a billion. If Walmart cannot spend the money necessary to stay with Amazon, how will other retailers keep pace?

All of this was from a SFDC retail-focused person, no details on the survey.

Source: Salesforce Commerce Cloud CEO at NRF – 75 percent of retailers are “ill-prepared” for the omni-channel

Go to where the customers are. True story.

By making it easy for people to buy movie tickets online or through a smartphone app, Fandango has experienced breakneck growth over the last two years. A couple of taps and presto! The seats are yours.

And on the “omni-channel,” even cyberspace has lots of omni:

“Consumers, particularly young ones, find it inconvenient to hop into different silos to get something done,” she said. “They want it all in one place. That sounds obnoxious, I know — the definition of a ‘first-world problem’ — but it’s true, and Fandango is solving it for them.”

Source:
Buy Movie Tickets on Facebook? Fandango Makes It Possible

Digital transformation progress report – Home Depot builds a digital future

“Last year [2014], about 40% of all the orders generated on homedepot.com actually finished in one of our orange box stores. Customers find it incredibly convenient to be able to pick up a product when they wanted to. They didn’t have to worry about whether or not it was on their doorstep. And so that is a great opportunity not only to sell more product, but to drive traffic to our stores, sell them additional product when they come in and pick that product up.”

Digital transformation progress report – Home Depot builds a digital future

Competing in the Age of Omnichannel Retailing

The retail industry is shifting toward a concierge model geared toward helping consumers, rather than focusing only on transactions and deliveries. For example, physical retail spaces will be augmented by virtual content accessible from smartphones and other devices such as Google Glass, Google’s wearable computer. As the multichannel retailing experience breaks down old barriers such as geography and consumer ignorance, it will become critical for retailers and their supply-chain partners in other industries to rethink their competitive strategies.

Also, some good stuff on in-store analytics and user tracking: tracking smartphone MAC addresses, genius!

Competing in the Age of Omnichannel Retailing