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Western Europeans love online shopping—at least more than they did last year, says Forrester Research. They spent 68 billion euros ($92.5 billion) online in 2009, up 12% from 2008. And, Forrester projects the growth trend will continue over the next five years. For the next five years, Forrester predicts online retail sales in Western Europe to grow at a compound annual growth rate of 11% to 155 billion euros ($210.5 billion) by 2014. “As the economy gets better and given the satisfaction with the Internet, it is highly likely that consumers will continue to look to the web for purchasing because of the benefits they find in using this channel,” Forrester says in its report. Read the full article at Internet Retailer
In February, sales were up, revenue from products sold at list price was up, the rate of growth in products sold at a discount was down significantly, and the overall health of web retailing was on the rise, according to the latest MyBuys E-commerce Wellness Index. The study of 150 e-retailer clients of MyBuys shows an 11% year-over-year growth in total e-commerce revenue, while purchases of full-priced items increased 16% versus February 2009. Sales of discounted items also increased 28% versus the same period a year ago, down markedly from the more than 100% increases steadily seen through the last half of 2009. “The last 90 days demonstrates positive momentum for the e-commerce industry, with strong February results far outweighing a weaker-than-expected January,” says Robert Cell, CEO of MyBuys. Read the full article
Outdoor apparel and gear retailer L.L. Bean will launch L.L. Bean Signature, a contemporary apparel and accessories line along with a dedicated e-commerce site and catalog. The company has already launched a dedicated Facebook fan page for the brand. The retailer began making limited quantities of seven items from the line available on the L.L. Bean Signature web site on Jan. 19. All the items sold out within three days. Read the full article
The e-commerce personalization provider has announced it will sponsor a 3-city tour aimed at retailered featuring CEO David Selinger and Paco Underhill (CEO of Envirosell) called “Respect The Shopper: Harmonizing the Cross-Channel Experience.” The program is designed to “arm retailers and brands with the data, insight, and best practices they need to successfully integrate online, offline, and mobile channels and lead the brand experience in the eyes of their customers.” The event will be held in New York, San Francisco and Chicago. According to Underhill, “In 2010 the power and convenience is in the consumer’s hands. Between the web-enabled mobile phone, the Internet and world of brick and mortar, we can find the cracks and inconsistencies in the business models of our merchant community. ‘Respect the Shopper’ aims to provide retailers and brands with concrete strategies to create a streamlined and meaningful experience for the individual shopper – regardless of the channel.” Read the full article
Cart abandonment rate is one the most watched metrics in retail e-commerce, and one that most merchants could stand to improve. But before making changes to their Web sites, retailers need to understand the many factors that lead to cart abandonment – not all of which are inherently evil. Cart abandonment rates average around 70%, but they can vary widely based on industry, product category, and customer base. Some of the most obvious factors driving cart abandonment include inventory availability and unexpected shipping and tax charges. Other, less obvious, factors may also contribute to cart abandonment. To understand and impact cart abandonment, retailers should first research their customer’s “natural” behaviors, and then seek opportunities to influence those behaviors through targeted content and promotions. Even seemingly minor user interface issues can have a significant impact on cart conversion rates, so identifying and correcting these issues should be top priority. Read the full article at Multichannel Merchant
Amazon is discontinuing its affiliate program in Colorado as the state has decided to impose new taxes on large out-of-state retailers like Amazon. Colorado’s move is not unique. Fifteen other states have considered or are considering enacting laws targeting Amazon and other e-commerce companies that typically do not charge sales tax for shipments sent outside their home state. Four states (including Colorado) have already enacted them. “I see this as a trend moving along--a lot of states are considering doing it,” said Joseph Henchman, director of state projects at the non-partisan Tax Foundation. But, Henchman says, the laws “won’t solve short-term budget problems, they signal business-unfriendliness, and they’re probably unconstitutional.” The justification for the laws is a reprise of arguments that state tax collectors have made for at least a decade: they claim that Amazon, Overstock.com, Blue Nile, and other online retailers that don’t collect taxes are unreasonably depriving states of revenue, and that they enjoy an unfair competitive advantage over local retailers that must collect taxes. More to come on this issue. Read the full article at CNET
Matthew Katz of Alix Partners - who heads up the consumer insights division for the analyst firm - was interviewed by MarketWatch on the changing buying habits of the American consumer during these economically challenging times. According to Katz, the recession has led to a fundamental change in consumers’ shopping behavior. For the first time in at least 10 years, consumers are choosing products and price/value over service, experience and time-spent making a purchase in their buying decisions which is increasingly the case as flight to value is defined by Katz as the intersection of price to product. Brand loyalty and store loyalty may be a thing of the past says Katz. Still, Katz does say that retailers with the “ability to connect with their consumers at some point” will ultimately win. To hear the interview, click the link above. Read the full article at MarketWatch
Younger shoppers are likely to purchase more items in fewer, larger trips, according to research from The Nielsen Company. Todd Hale, SVP, consumer and shopping insights, Nielsen, has compiled a list of tips on devising retail marketing strategies specific to each major generation of the US population. According to Hale, the oldest consumers look first for deals but younger shoppers spend more per trip than other while Baby Boomers need to be recognized as vital and evolving even as they approach retirement age. Click the link to read more. Read the full article
The tide of technological change continues to mould the print landscape. New figures released by research firm Outsell show that, for the first time ever, businesses plan to spend more this year on digital and online advertising and marketing than on print. The companies surveyed intend to spend $119.6 billion on their online and digital efforts this year compared with just $111.5 billion on newspaper and magazine campaigns. In 2009, print spending accounted for 32% of total marketing and advertising spending compared with 30% for online and digital. This year, print will make up 30% and online 33%. “Advertisers are directing dollars toward the channels which generate the most qualified leads and most effective branding,” said Outsell vice president and lead analyst Chuck Richard. Read the full article
J.C. Penney has named Nancy Love, vp for planning and allocation for the retailer’s men’s division, as its JCP.com senior vice president. She reports to Mike Boylson, chief marketing officer. John Tighe, who previously held the position, was promoted to senior vice president and general merchandise manager of the retailer’s home division. J.C. Penney hired Tighe in 2002. Most recently, he had overseen strategy and business planning for the retailer’s web site. For two years web sales have remained flat for J.C. Penney. The retailer said results for the fourth quarter of 2009 showed a 4.3% year-over-year increase in web sales, but J.C. Penney did not release specific numbers. Read the full article

