![\"\u2122\"](\"https://s.w.org/images/core/emoji/15.0.3/72x72/2122.png\")
shoppers, preferring shopping journeys that combine the digital and the physical.As consumers, especially younger generations, grow accustomed to having their needs met at a rapid pace, Ahold Delhaize is seeing shoppers be less loyal to specific brands.
\nIn an interview with PYMNTS, Bobby Watts, SVP executive lead at the grocery giant\u2019s AD Retail Media arm, spoke to how both the current economic climate and the rise of digital are eroding grocery shoppers\u2019 loyalty.
\n\u201cThey\u2019re not as brand loyal as they used to be. \u2026 I think it\u2019s [because of] two things. I definitely think that economic pressures are causing consumers to make choices \u2026 based on price or promotion or value,\u201d Watts said. \u201cBut we also see \u2026 the younger generation has grown up in a world where everything is instantaneous, and things are moving at such a fast pace, that they\u2019re willing now to experiment more and test different brands, whereas the other demographics may not be as apt to do so.\u201d
\nIndeed, consumers are making changes to their grocery purchasing habits in response to cost pressures. PYMNTS Intelligence data show that 36% of consumers have traded down from their go-to grocery products to cheaper versions of them in response to inflation.
\nIn fact, grocery shoppers tend to show considerably stronger affinity toward merchants than products. PYMNTS Intelligence research shows that 53% of grocery customers say that they are more loyal to merchants than products, and only 35% are more loyal to products than merchants.
\nOne of the ways that brands are looking to win consumers\u2019 loyalty is through personalization, but not all such initiatives are successful. Shoppers increasingly expect tailored offers and recommendations that align with their preferences and purchase history. However, many find themselves underwhelmed by the generic nature of the promotions they receive.
\n\u201cWe want to make sure that we\u2019re \u2026 using first-party data to create value for them, and we do that through personalized offers,\u201d Watts said. \u201cWe want to make sure [there are] things in offers that are relevant to them based on their purchase history.\u201d
\nPYMNTS Intelligence\u2019s study \u201cPersonalized Offers Are Powerful \u2014 But Too Often Off-Base\u201d finds that 83% of consumers are interested in receiving personalized offers, but only 44% find the ones that they are currently receiving to be very relevant to their needs.
\nBy analyzing consumer purchase patterns and engagement metrics, retailers can deliver more relevant and timely offers, enhancing the overall shopping experience and fostering deeper customer relationships.
\nAhold Delhaize is seeing 90% of purchases come through its brick-and-mortar stores.
\n\u201cWhat\u2019s old is new again,\u201d Watts said. \u201cWe seem to be taking things back in store.\u201d
\nWatts highlighted that the integration of retail media with physical stores is part of this resurgence of in-person, with on-site digital interfaces in these stores creating a hybrid retail media space. Retailers are combining these technologies with analog brand signage and mobile app integrations to engage consumers at multiple touchpoints within the store environment.
\nAdditionally, the omnichannel behavior of grocery shoppers has been significantly shaped by the pandemic. The rise of click-and-collect, expedited pickup windows, and third-party delivery services such as DoorDash and Instacart demonstrate the flexibility and immediacy consumers now demand.
\nWatts observed that shoppers are not confined to a single mode of shopping; instead, they seamlessly navigate between digital and physical channels based on convenience and availability.
\nThe PYMNTS Intelligence study \u201c2024 Global Digital Shopping Index: U.S. Edition,\u201d created in collaboration with\u00a0Visa Acceptance Solutions, found that roughly a third of U.S. consumers are Click-and-Mortar shoppers, preferring shopping journeys that combine the digital and the physical.
Looking ahead, as the retail media network aims to understand shoppers\u2019 behavior across digital and physical channels, Watts expects artificial intelligence (AI) and machine learning (ML) to play a key role.
\n\u201cOne of the things that we\u2019re working on is, how do we think about bringing a generative AI layer over top of media planning, so that you have all the signals coming from the multitude of channels that we offer,\u201d Watts said. \u201cLeveraging generative AI and ML to create the loop that takes the wonderful first-party data and measurement capabilities we have as a retail media network \u2026 to build a media plan based on mission objectives.\u201d
\nThe post Ahold Delhaize Exec Says Digital Convenience Can Mean Fewer Loyal Shoppers appeared first on PYMNTS.com.
\n", "content_text": "As consumers, especially younger generations, grow accustomed to having their needs met at a rapid pace, Ahold Delhaize is seeing shoppers be less loyal to specific brands.\nIn an interview with PYMNTS, Bobby Watts, SVP executive lead at the grocery giant\u2019s AD Retail Media arm, spoke to how both the current economic climate and the rise of digital are eroding grocery shoppers\u2019 loyalty.\n\u201cThey\u2019re not as brand loyal as they used to be. \u2026 I think it\u2019s [because of] two things. I definitely think that economic pressures are causing consumers to make choices \u2026 based on price or promotion or value,\u201d Watts said. \u201cBut we also see \u2026 the younger generation has grown up in a world where everything is instantaneous, and things are moving at such a fast pace, that they\u2019re willing now to experiment more and test different brands, whereas the other demographics may not be as apt to do so.\u201d\nIndeed, consumers are making changes to their grocery purchasing habits in response to cost pressures. PYMNTS Intelligence data show that 36% of consumers have traded down from their go-to grocery products to cheaper versions of them in response to inflation.\nIn fact, grocery shoppers tend to show considerably stronger affinity toward merchants than products. PYMNTS Intelligence research shows that 53% of grocery customers say that they are more loyal to merchants than products, and only 35% are more loyal to products than merchants.\nGetting Personal\nOne of the ways that brands are looking to win consumers\u2019 loyalty is through personalization, but not all such initiatives are successful. Shoppers increasingly expect tailored offers and recommendations that align with their preferences and purchase history. However, many find themselves underwhelmed by the generic nature of the promotions they receive.\n\u201cWe want to make sure that we\u2019re \u2026 using first-party data to create value for them, and we do that through personalized offers,\u201d Watts said. \u201cWe want to make sure [there are] things in offers that are relevant to them based on their purchase history.\u201d\nPYMNTS Intelligence\u2019s study \u201cPersonalized Offers Are Powerful \u2014 But Too Often Off-Base\u201d finds that 83% of consumers are interested in receiving personalized offers, but only 44% find the ones that they are currently receiving to be very relevant to their needs.\nBy analyzing consumer purchase patterns and engagement metrics, retailers can deliver more relevant and timely offers, enhancing the overall shopping experience and fostering deeper customer relationships.\n\u2018What\u2019s Old Is New Again\u2019\nAhold Delhaize is seeing 90% of purchases come through its brick-and-mortar stores.\n\u201cWhat\u2019s old is new again,\u201d Watts said. \u201cWe seem to be taking things back in store.\u201d\nWatts highlighted that the integration of retail media with physical stores is part of this resurgence of in-person, with on-site digital interfaces in these stores creating a hybrid retail media space. Retailers are combining these technologies with analog brand signage and mobile app integrations to engage consumers at multiple touchpoints within the store environment.\nAdditionally, the omnichannel behavior of grocery shoppers has been significantly shaped by the pandemic. The rise of click-and-collect, expedited pickup windows, and third-party delivery services such as DoorDash and Instacart demonstrate the flexibility and immediacy consumers now demand.\nWatts observed that shoppers are not confined to a single mode of shopping; instead, they seamlessly navigate between digital and physical channels based on convenience and availability.\nThe PYMNTS Intelligence study \u201c2024 Global Digital Shopping Index: U.S. Edition,\u201d created in collaboration with\u00a0Visa Acceptance Solutions, found that roughly a third of U.S. consumers are Click-and-Mortar shoppers, preferring shopping journeys that combine the digital and the physical.\nLooking ahead, as the retail media network aims to understand shoppers\u2019 behavior across digital and physical channels, Watts expects artificial intelligence (AI) and machine learning (ML) to play a key role.\n\u201cOne of the things that we\u2019re working on is, how do we think about bringing a generative AI layer over top of media planning, so that you have all the signals coming from the multitude of channels that we offer,\u201d Watts said. \u201cLeveraging generative AI and ML to create the loop that takes the wonderful first-party data and measurement capabilities we have as a retail media network \u2026 to build a media plan based on mission objectives.\u201d\nThe post Ahold Delhaize Exec Says Digital Convenience Can Mean Fewer Loyal Shoppers appeared first on PYMNTS.com.", "date_published": "2024-08-13T15:03:09-04:00", "date_modified": "2024-08-13T21:43:51-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/grocery-shoppers-omnichannel.png", "tags": [ "Ahold Delhaize", "Bobby Watts", "brand loyalty", "brick and mortar", "convenience", "Featured News", "grocery", "News", "PYMNTS Intelligence", "PYMNTS News", "Retail" ] }, { "id": "https://www.pymnts.com/?p=2051710", "url": "https://www.pymnts.com/news/retail/2024/contextual-commerce-drives-omnichannel-engagement-emerging-alcohol-brands/", "title": "Contextual Commerce Drives Omnichannel Engagement for Emerging Alcohol Brands", "content_html": "As alcoholic beverage brands look for ways to capture consumers\u2019 attention and spending in the digital world, Purity Distillery sees contextual commerce help build these omnichannel connections.
\nTate Troelstrup, president and CEO of the spirits brand, explained in an interview with PYMNTS how the company originally focused more on offering product recommendations and combinations than on simply driving sales.
\n\u201cWhen we initially dipped our toe in, we were really focused on offering interesting groupings of our brands to try and find different touch points,\u201d he said. \u201c\u2026 The whole goal for us was just to create a connection with consumers. We were somewhat interested in sales, but more than anything, we were trying to figure out, as a small brand, how we could build a relationship with different consumers and what are they interested in.\u201d
\nPart of this came down to influencer marketing, working with creators to offer, for instance, cocktail recipes that would encourage consumers to try the company\u2019s gins and vodkas.
\nMany young consumers look to influencers to guide their spending decisions, per PYMNTS Intelligence research. According to the \u201cGeneration Zillennial: How They Shop\u201d report, 13% of consumers nationwide stated that social media influencers or celebrities at least partially influenced their purchasing decisions in the previous 30 days. This figure more than doubled for Generation Z, with 28% reporting such influence, while 22% of millennials indicated the same.
\nTroelstrup noted that working with creators proved less effective than tapping micro-influencers, who tended to have stronger connections with their followings.
\n\u201cFolks that had maybe a smaller follower count but a more authentic connection, and that\u2019s what we\u2019re looking for as we\u2019ve built our own [customer relationship management (CRM)] and our own account \u2014 more about how we can have these high-quality interactions with consumers who will not only potentially buy us on eComm but knowing that eComm is part of a multi-touchpoint consumer journey,\u201d he said.
\nAs Purity Distillery\u2019s digital strategy evolved, there was a shift from purely engaging consumers to incorporating a more sales-oriented approach. The company learned that directing consumers straight to an eCommerce hub was less effective than integrating them into a broader ecosystem. By providing various pathways \u2014 be it online purchases, finding local stores or ordering a cocktail at a nearby bar \u2014 Purity Distillery is creating a more flexible consumer journey.
\n\u201cAs [our omnichannel presence has] evolved, it\u2019s become a little less blocky, a lot more nuanced and focused,\u201d Troelstrup said.
\nEconomic factors also play a role in shaping digital engagement. With rising price sensitivities, consumers prefer to buy products during their regular shopping trips rather than online, where shipping costs and delivery uncertainties can deter purchases. This effect mirrors the trend seen in the restaurant industry, where economic pressures have consumers shifting away from ordering delivery toward lower-cost channels such as pickup.
\nLooking ahead, Troelstrup said he expects some of these challenges to be alleviated, but the regulatory issues with alcoholic beverage eCommerce will continue to hamper growth in the space.
\n\u201cA year from now, we\u2019ll \u2026 hopefully have moved beyond some of the economic headwinds and be talking about what the online experience can look like for the consumer,\u201d he said. \u201cThe consumer should have access to a great, wide selection of brands. eCommerce lets them do that, but of course, there are some compliance challenges, so I think that conversation will be ongoing and not something that goes anywhere anytime soon.\u201d
\nThe post Contextual Commerce Drives Omnichannel Engagement for Emerging Alcohol Brands appeared first on PYMNTS.com.
\n", "content_text": "As alcoholic beverage brands look for ways to capture consumers\u2019 attention and spending in the digital world, Purity Distillery sees contextual commerce help build these omnichannel connections.\nTate Troelstrup, president and CEO of the spirits brand, explained in an interview with PYMNTS how the company originally focused more on offering product recommendations and combinations than on simply driving sales.\n\u201cWhen we initially dipped our toe in, we were really focused on offering interesting groupings of our brands to try and find different touch points,\u201d he said. \u201c\u2026 The whole goal for us was just to create a connection with consumers. We were somewhat interested in sales, but more than anything, we were trying to figure out, as a small brand, how we could build a relationship with different consumers and what are they interested in.\u201d\nPart of this came down to influencer marketing, working with creators to offer, for instance, cocktail recipes that would encourage consumers to try the company\u2019s gins and vodkas.\nMany young consumers look to influencers to guide their spending decisions, per PYMNTS Intelligence research. According to the \u201cGeneration Zillennial: How They Shop\u201d report, 13% of consumers nationwide stated that social media influencers or celebrities at least partially influenced their purchasing decisions in the previous 30 days. This figure more than doubled for Generation Z, with 28% reporting such influence, while 22% of millennials indicated the same.\nTroelstrup noted that working with creators proved less effective than tapping micro-influencers, who tended to have stronger connections with their followings.\n\u201cFolks that had maybe a smaller follower count but a more authentic connection, and that\u2019s what we\u2019re looking for as we\u2019ve built our own [customer relationship management (CRM)] and our own account \u2014 more about how we can have these high-quality interactions with consumers who will not only potentially buy us on eComm but knowing that eComm is part of a multi-touchpoint consumer journey,\u201d he said.\nAs Purity Distillery\u2019s digital strategy evolved, there was a shift from purely engaging consumers to incorporating a more sales-oriented approach. The company learned that directing consumers straight to an eCommerce hub was less effective than integrating them into a broader ecosystem. By providing various pathways \u2014 be it online purchases, finding local stores or ordering a cocktail at a nearby bar \u2014 Purity Distillery is creating a more flexible consumer journey.\n\u201cAs [our omnichannel presence has] evolved, it\u2019s become a little less blocky, a lot more nuanced and focused,\u201d Troelstrup said.\nEconomic factors also play a role in shaping digital engagement. With rising price sensitivities, consumers prefer to buy products during their regular shopping trips rather than online, where shipping costs and delivery uncertainties can deter purchases. This effect mirrors the trend seen in the restaurant industry, where economic pressures have consumers shifting away from ordering delivery toward lower-cost channels such as pickup.\nLooking ahead, Troelstrup said he expects some of these challenges to be alleviated, but the regulatory issues with alcoholic beverage eCommerce will continue to hamper growth in the space.\n\u201cA year from now, we\u2019ll \u2026 hopefully have moved beyond some of the economic headwinds and be talking about what the online experience can look like for the consumer,\u201d he said. \u201cThe consumer should have access to a great, wide selection of brands. eCommerce lets them do that, but of course, there are some compliance challenges, so I think that conversation will be ongoing and not something that goes anywhere anytime soon.\u201d\nThe post Contextual Commerce Drives Omnichannel Engagement for Emerging Alcohol Brands appeared first on PYMNTS.com.", "date_published": "2024-08-13T11:00:43-04:00", "date_modified": "2024-08-13T11:00:43-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Purity-Distillery-alcohol-brands.jpg", "tags": [ "ecommerce", "food and beverage", "Generation Z", "News", "omnichannel", "Purity Distillery", "PYMNTS News", "Retail", "social commerce", "Social Media", "Tate Troelstrup" ] }, { "id": "https://www.pymnts.com/?p=2051208", "url": "https://www.pymnts.com/news/retail/2024/beekman-1802-co-founder-ai-enables-more-compelling-retail-education/", "title": "Beekman 1802 Co-Founder: AI Enables More Compelling Retail Education", "content_html": "As beauty brands look for ways to explain their products to consumers without losing the shopper\u2019s interest, Beekman 1802 is seeing artificial intelligence and augmented reality open possibilities for more engrossing educational experiences.
\nPhysician (and reality television star) Dr. Brent Ridge, co-founder of the skincare brand, discussed with PYMNTS in an interview how the company\u2019s My Skin Biome tool, using Perfect Corp.\u2019s AI and AR, is helping it teach shoppers about its offerings.
\n\u201cWe really use it as an entertaining way to educate our consumer about our product,\u201d Ridge said. \u201cOur product is very clinical and very science-based, and we talk a lot about the skin microbiome and skin sensitivity, and so we use it to get our consumer engaged with the science.\u201d
\nThe company has seen a 35% increase in conversion rates with the technology and a 13% boost in average order value, Ridge said. Moreover, users who engage with the AI tool are 150% more likely to explore additional pages on the website and exhibit a 50% lower bounce rate. These consumers are also 35% more likely to make repeat purchases and have a 40% higher lifetime value if they have used the AI technology.
\nConsumers are engaging less with the AI tool on their own devices in the aftermath of the pandemic, with less free time sitting around at home.
\n\u201cGetting people to naturally spend time on our website, if they\u2019re not prompted to do it in a very specific way, is more challenging now than it was during the pandemic,\u201d Ridge said.
\nConversely, he noted that the company has seen strong results from having associates in Ulta locations use the tool to educate consumers in stores.
\nOverall, many consumers are open to mixed-reality technologies that can help them make shopping decisions. For instance, per PYMNTS Intelligence\u2019s \u201cHow We Will Pay Report: How Connected Devices Enable Multitasking Among Digital-First Consumers,\u201d 38% of connected device owners expressed strong interest in using virtual technology to visualize items in their space before purchasing. Additionally, 39% were interested in using an app on their phone to see how a piece of clothing would look on them before buying it.
\nLooking ahead, Ridge said he envisions AI playing an increasingly central role in personalizing skincare solutions.
\n\u201cI think we are going to see more and more personalization when it comes to product recommendation,\u201d he explained.
\nThe ability to collect more data from consumers through AI tools will enable brands such as Beekman 1802 to offer more tailored product solutions for specific skincare concerns, as opposed to a more \u201cone-product-fits-all\u201d approach that has been common in the industry, he said.
\nAs AI technology evolves, it will allow brands to create highly customized experiences that cater to the unique needs of each consumer. This not only enhances the customer experience but also builds brand loyalty by offering more effective solutions.
\n\u201cWe think that there is a big future in the use of AI and AR in the beauty industry,\u201d Ridge said. \u201c\u2026 When you can use a compelling image, like what we get from the AI tool, it helps the consumer go deeper, and once you can get them to go deeper, then you can educate them more efficiently.\u201d
\nFor all PYMNTS AI coverage, subscribe to the daily AI Newsletter.
\nThe post Beekman 1802 Co-Founder: AI Enables More Compelling Retail Education appeared first on PYMNTS.com.
\n", "content_text": "As beauty brands look for ways to explain their products to consumers without losing the shopper\u2019s interest, Beekman 1802 is seeing artificial intelligence and augmented reality open possibilities for more engrossing educational experiences.\nPhysician (and reality television star) Dr. Brent Ridge, co-founder of the skincare brand, discussed with PYMNTS in an interview how the company\u2019s My Skin Biome tool, using Perfect Corp.\u2019s AI and AR, is helping it teach shoppers about its offerings.\n\u201cWe really use it as an entertaining way to educate our consumer about our product,\u201d Ridge said. \u201cOur product is very clinical and very science-based, and we talk a lot about the skin microbiome and skin sensitivity, and so we use it to get our consumer engaged with the science.\u201d\nThe company has seen a 35% increase in conversion rates with the technology and a 13% boost in average order value, Ridge said. Moreover, users who engage with the AI tool are 150% more likely to explore additional pages on the website and exhibit a 50% lower bounce rate. These consumers are also 35% more likely to make repeat purchases and have a 40% higher lifetime value if they have used the AI technology.\nConsumers are engaging less with the AI tool on their own devices in the aftermath of the pandemic, with less free time sitting around at home.\n\u201cGetting people to naturally spend time on our website, if they\u2019re not prompted to do it in a very specific way, is more challenging now than it was during the pandemic,\u201d Ridge said.\nConversely, he noted that the company has seen strong results from having associates in Ulta locations use the tool to educate consumers in stores.\nOverall, many consumers are open to mixed-reality technologies that can help them make shopping decisions. For instance, per PYMNTS Intelligence\u2019s \u201cHow We Will Pay Report: How Connected Devices Enable Multitasking Among Digital-First Consumers,\u201d 38% of connected device owners expressed strong interest in using virtual technology to visualize items in their space before purchasing. Additionally, 39% were interested in using an app on their phone to see how a piece of clothing would look on them before buying it.\nLooking ahead, Ridge said he envisions AI playing an increasingly central role in personalizing skincare solutions.\n\u201cI think we are going to see more and more personalization when it comes to product recommendation,\u201d he explained.\nThe ability to collect more data from consumers through AI tools will enable brands such as Beekman 1802 to offer more tailored product solutions for specific skincare concerns, as opposed to a more \u201cone-product-fits-all\u201d approach that has been common in the industry, he said.\nAs AI technology evolves, it will allow brands to create highly customized experiences that cater to the unique needs of each consumer. This not only enhances the customer experience but also builds brand loyalty by offering more effective solutions.\n\u201cWe think that there is a big future in the use of AI and AR in the beauty industry,\u201d Ridge said. \u201c\u2026 When you can use a compelling image, like what we get from the AI tool, it helps the consumer go deeper, and once you can get them to go deeper, then you can educate them more efficiently.\u201d\nFor all PYMNTS AI coverage, subscribe to the daily AI Newsletter.\nThe post Beekman 1802 Co-Founder: AI Enables More Compelling Retail Education appeared first on PYMNTS.com.", "date_published": "2024-08-12T15:26:50-04:00", "date_modified": "2024-08-12T15:26:50-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/beauty-AI-augmented-reality.jpg", "tags": [ "artificial intelligence", "Augmented Reality", "beauty", "Beekman 1802", "checkout conversion", "connected commerce", "Connected Economy", "digital transformation", "Dr. Brent Ridge", "ecommerce", "GenAI", "Innovation", "My Skin Biome", "News", "PYMNTS News", "Retail", "Technology", "Ulta" ] }, { "id": "https://www.pymnts.com/?p=2051145", "url": "https://www.pymnts.com/news/retail/2024/national-consumers-league-ceo-drip-pricing-leaves-consumers-in-the-dark/", "title": "National Consumers League CEO: Drip Pricing Leaves Consumers in the Dark", "content_html": "Drip pricing, or added fees consumers only learn about at checkout, are coming under fire from consumer groups as proposed rules make their way through Congress.
\nIn the context of live event ticketing, the practice of drip pricing is \u201cproblematic because it can lead to significant consumer deception and frustration,\u201d Sally Greenberg, CEO of the National Consumers League (NCL), told PYMNTS in an interview.
\nGreenberg said drip pricing is a sales tactic in which a company advertises only part of a product\u2019s price upfront and reveals additional mandatory fees incrementally as the customer proceeds through the purchasing process.
\n\u201cCustomers may initially be attracted by a seemingly low-ticket price,\u201d she said, \u201conly to discover various fees and charges added on at later stages, making the final cost much higher than anticipated. This lack of transparency can hinder consumers\u2019 ability to make informed purchasing decisions, distort price competition among ticket sellers, and ultimately undermine consumer trust in the market.\u201d
\nGreenberg said drip pricing has been a concern for consumers for many years, particularly since the rise of online commerce in the late 1990s and early 2000s.
\n\u201cThe practice has become more prevalent with the increased use of digital platforms for purchasing tickets and other goods, as companies have found new ways to layer additional costs into the final price,\u201d Greenberg added.
\nThe NCL, along with a coalition of 18 other organizations, are backing HR 3950 \u2013 TICKET Act, a bill that would mandate all-in pricing across the ticket industry. Introduced in June 2023, the proposed legislation passed the House of Representatives 388-24 on May 15. The U.S. Senate has since referred the bill to the Committee on Commerce, Science, and Transportation.
\nIn a July 25 letter to the committee, the NCL and 18 other organizations advocated for the bill, stating: \u201cWith the end of the current Congressional session fast approaching, now is the best chance to pass meaningful ticketing reform that will improve the lives of millions of live event fans.\u201d
\nGiven the \u201ccommon sense nature of the proposal,\u201d the letter said, \u201cHR 3950 creates strong consumer protections without the threats to marketplace competition posed by some other legislative proposals. It would improve the consumer experience no matter who they shop from when purchasing tickets.\u201d
\nThe bill requires ticket sellers (including sellers on the secondary market) for concerts, performances, sporting events and similar activities to clearly and prominently disclose at the beginning of the transaction and prior to the selection of a ticket, the total ticket price for the event and an itemized list of the base ticket price and each fee (e.g., service fee, processing fee, delivery fee, facility charge fee, tax, or other charge). The total ticket price must also be disclosed in any advertisement, marketing or price list. Currently, ticket sellers generally disclose fees at the checkout stage.
\nAdditionally, ticket sellers offering to sell a ticket that the seller does not have in their possession must clearly and prominently disclose that the ticket is not in their possession before a consumer selects a ticket to purchase. The proposed legislation also provides fans a full refund for a canceled event or, if the event is postponed, a comparable replacement ticket at the fan\u2019s approval.
\nWashington, D.C., Attorney General Brian Schwalb\u2019s recent lawsuit against StubHub underscores ongoing regulatory concerns. Filed on July 31, the suit accuses the ticket resale platform of engaging in drip pricing and failing to disclose the reasons for these fees or how they are calculated, revealing additional costs only incrementally throughout the purchasing process.
\n\u201cMany ticket sellers, including StubHub, offer the ability to view prices with fees included on the first screen of a ticket-buying process,\u201d Greenberg added. \u201cUnfortunately, this is not always easy as this option is not usually turned on by default and it\u2019s not always easy to find in the interface. For example, on StubHub, when a ticket buyer clicks into a particular event, he or she has to click the \u201cFilters\u201d button, then scroll down to the \u201cPrice Display Options\u201d drop-down, then toggle the \u201cInclude estimated fees\u201d slider to see the ticket price with fees included.\u201d
\nThe post National Consumers League CEO: Drip Pricing Leaves Consumers in the Dark appeared first on PYMNTS.com.
\n", "content_text": "Drip pricing, or added fees consumers only learn about at checkout, are coming under fire from consumer groups as proposed rules make their way through Congress.\nIn the context of live event ticketing, the practice of drip pricing is \u201cproblematic because it can lead to significant consumer deception and frustration,\u201d Sally Greenberg, CEO of the National Consumers League (NCL), told PYMNTS in an interview.\nGreenberg said drip pricing is a sales tactic in which a company advertises only part of a product\u2019s price upfront and reveals additional mandatory fees incrementally as the customer proceeds through the purchasing process.\n\u201cCustomers may initially be attracted by a seemingly low-ticket price,\u201d she said, \u201conly to discover various fees and charges added on at later stages, making the final cost much higher than anticipated. This lack of transparency can hinder consumers\u2019 ability to make informed purchasing decisions, distort price competition among ticket sellers, and ultimately undermine consumer trust in the market.\u201d\nGreenberg said drip pricing has been a concern for consumers for many years, particularly since the rise of online commerce in the late 1990s and early 2000s.\n\u201cThe practice has become more prevalent with the increased use of digital platforms for purchasing tickets and other goods, as companies have found new ways to layer additional costs into the final price,\u201d Greenberg added.\nThe NCL, along with a coalition of 18 other organizations, are backing HR 3950 \u2013 TICKET Act, a bill that would mandate all-in pricing across the ticket industry. Introduced in June 2023, the proposed legislation passed the House of Representatives 388-24 on May 15. The U.S. Senate has since referred the bill to the Committee on Commerce, Science, and Transportation.\nIn a July 25 letter to the committee, the NCL and 18 other organizations advocated for the bill, stating: \u201cWith the end of the current Congressional session fast approaching, now is the best chance to pass meaningful ticketing reform that will improve the lives of millions of live event fans.\u201d\nGiven the \u201ccommon sense nature of the proposal,\u201d the letter said, \u201cHR 3950 creates strong consumer protections without the threats to marketplace competition posed by some other legislative proposals. It would improve the consumer experience no matter who they shop from when purchasing tickets.\u201d\nThe bill requires ticket sellers (including sellers on the secondary market) for concerts, performances, sporting events and similar activities to clearly and prominently disclose at the beginning of the transaction and prior to the selection of a ticket, the total ticket price for the event and an itemized list of the base ticket price and each fee (e.g., service fee, processing fee, delivery fee, facility charge fee, tax, or other charge). The total ticket price must also be disclosed in any advertisement, marketing or price list. Currently, ticket sellers generally disclose fees at the checkout stage.\nAdditionally, ticket sellers offering to sell a ticket that the seller does not have in their possession must clearly and prominently disclose that the ticket is not in their possession before a consumer selects a ticket to purchase. The proposed legislation also provides fans a full refund for a canceled event or, if the event is postponed, a comparable replacement ticket at the fan\u2019s approval.\nWashington, D.C., Attorney General Brian Schwalb\u2019s recent lawsuit against StubHub underscores ongoing regulatory concerns. Filed on July 31, the suit accuses the ticket resale platform of engaging in drip pricing and failing to disclose the reasons for these fees or how they are calculated, revealing additional costs only incrementally throughout the purchasing process.\n\u201cMany ticket sellers, including StubHub, offer the ability to view prices with fees included on the first screen of a ticket-buying process,\u201d Greenberg added. \u201cUnfortunately, this is not always easy as this option is not usually turned on by default and it\u2019s not always easy to find in the interface. For example, on StubHub, when a ticket buyer clicks into a particular event, he or she has to click the \u201cFilters\u201d button, then scroll down to the \u201cPrice Display Options\u201d drop-down, then toggle the \u201cInclude estimated fees\u201d slider to see the ticket price with fees included.\u201d\nThe post National Consumers League CEO: Drip Pricing Leaves Consumers in the Dark appeared first on PYMNTS.com.", "date_published": "2024-08-12T14:17:21-04:00", "date_modified": "2024-08-12T14:17:21-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/drip-pricing-events-tickets.jpg", "tags": [ "checkout", "Congress", "drip pricing", "ecommerce", "Event Tickets", "Events", "house", "legal", "National Consumers League", "News", "online shopping", "PYMNTS News", "Sally Greenberg", "StubHub", "tickets", "Retail" ] }, { "id": "https://www.pymnts.com/?p=2050545", "url": "https://www.pymnts.com/news/retail/2024/fast-food-chains-promote-value-as-restaurant-prices-climb/", "title": "Fast-Food Chains Promote Value as Restaurant Prices Climb", "content_html": "Value has become the watchword for fast-food brands these days.
\nAs CNBC reported Sunday (Aug. 11), restaurant CEOs keep pointing to value when explaining to investors why sales have cooled, while also offering up their plans to boost traffic.
\n\u201cValue\u201d came up nearly 80 times when McDonald\u2019s held its earnings call in July, the report said, while executives at companies like Papa John\u2019s and Pizza Hut/Taco Bell owner Yum Brands also mentioned value dozens of times on their calls.
\n\u201cThe word \u2018value\u2019 has received a lot of airtime in the past few months,\u201d Josh Kobza, the CEO of Burger King parent company Restaurant Brands International, said last week.
\nThe report noted that there\u2019s a reason fast-food brands are focusing on value: prices at restaurants have risen 27.2% since June 2019, according to Bureau of Labor Statistics data. And that\u2019s led to a drop in restaurant traffic and sales as consumers spend less on dining out.
\nTo reverse this trend, chains like McDonald\u2019s, Burger King and Taco Bell have begun offering promotions like their $5 meal deals.
\n\u201cIn this current economic cycle, consumers have become more deliberate in managing their overall ticket and are showing a preference for brands that are offering compelling value,\u201d Papa John\u2019s CFO Ravi Thanawala said during the company\u2019s call on Thursday.
\nYum Brands, meanwhile, released earnings last week showing a slight decline in sales, prompting the company to roll out initiatives to appeal to cost-conscious diners.
\n\u201cEnsuring we provide consumer\u2019s affordable options has been an area of greater focus for us since last year, with all of our brands having offered disruptive deals and introduced or reintroduced the track of everyday value,” said CEO David Gibbs.
\n\u201cOur brands experienced improving trends relative to the first quarter in the U.S. market, and we continue to refine our offerings in international markets to recapture similar momentum.\u201d
\nThe slowdown in consumer spending applies to more than just the nation\u2019s fast-food restaurants, PYMNTS wrote last week.
\n\u201cConsumers are thinking twice before pulling the trigger to buy even everyday items \u2014 a hesitation to spend that\u2019s evidencing itself in slowdowns and headwinds for all manner of firms across all avenues of commerce,\u201d that report said.
\nThese cuts come in areas such as home furnishings, with Wayfair reporting a quarterly sales dip, and travel, with Disney seeing what it called a \u201cmoderation\u201d in visits to its parks.
\nThe post Fast-Food Chains Promote Value as Restaurant Prices Climb appeared first on PYMNTS.com.
\n", "content_text": "Value has become the watchword for fast-food brands these days.\nAs CNBC reported Sunday (Aug. 11), restaurant CEOs keep pointing to value when explaining to investors why sales have cooled, while also offering up their plans to boost traffic.\n\u201cValue\u201d came up nearly 80 times when McDonald\u2019s held its earnings call in July, the report said, while executives at companies like Papa John\u2019s and Pizza Hut/Taco Bell owner Yum Brands also mentioned value dozens of times on their calls.\n\u201cThe word \u2018value\u2019 has received a lot of airtime in the past few months,\u201d Josh Kobza, the CEO of Burger King parent company Restaurant Brands International, said last week.\nThe report noted that there\u2019s a reason fast-food brands are focusing on value: prices at restaurants have risen 27.2% since June 2019, according to Bureau of Labor Statistics data. And that\u2019s led to a drop in restaurant traffic and sales as consumers spend less on dining out.\nTo reverse this trend, chains like McDonald\u2019s, Burger King and Taco Bell have begun offering promotions like their $5 meal deals.\n\u201cIn this current economic cycle, consumers have become more deliberate in managing their overall ticket and are showing a preference for brands that are offering compelling value,\u201d Papa John\u2019s CFO Ravi Thanawala said during the company\u2019s call on Thursday.\nYum Brands, meanwhile, released earnings last week showing a slight decline in sales, prompting the company to roll out initiatives to appeal to cost-conscious diners.\n\u201cEnsuring we provide consumer\u2019s affordable options has been an area of greater focus for us since last year, with all of our brands having offered disruptive deals and introduced or reintroduced the track of everyday value,” said CEO David Gibbs.\n\u201cOur brands experienced improving trends relative to the first quarter in the U.S. market, and we continue to refine our offerings in international markets to recapture similar momentum.\u201d\nThe slowdown in consumer spending applies to more than just the nation\u2019s fast-food restaurants, PYMNTS wrote last week.\n\u201cConsumers are thinking twice before pulling the trigger to buy even everyday items \u2014 a hesitation to spend that\u2019s evidencing itself in slowdowns and headwinds for all manner of firms across all avenues of commerce,\u201d that report said.\nThese cuts come in areas such as home furnishings, with Wayfair reporting a quarterly sales dip, and travel, with Disney seeing what it called a \u201cmoderation\u201d in visits to its parks.\nThe post Fast-Food Chains Promote Value as Restaurant Prices Climb appeared first on PYMNTS.com.", "date_published": "2024-08-11T18:43:21-04:00", "date_modified": "2024-08-11T18:44:35-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/McDonalds-5-meal.jpg", "tags": [ "Consumer Spending", "fast food", "fast food sales", "food prices", "News", "PYMNTS News", "QSR", "quick service restaurants", "restaurant sales", "Restaurants", "Retail", "value", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2050119", "url": "https://www.pymnts.com/news/retail/2024/from-travel-to-coffee-to-ecommerce-consumers-are-pulling-back/", "title": "From Travel to Coffee to eCommerce, Consumers are Pulling Back", "content_html": "Consumers are thinking twice before pulling the trigger to buy even everyday items \u2014 a hesitation to spend\u00a0that\u2019s evidencing itself in slowdowns and headwinds for all manner of firms across all avenues of commerce.\u00a0
\nThere\u2019s resilience, to be sure, but the resilience looks to be flagging, at least a bit, and depending on where you look.
\nThe pressures have been in place for some time.
\nAs PYMNTS noted in February, coming off the holiday shopping season, 32.5% of consumers had said that they\u2019d reduced the quality of items that had bought, and more than 61% of consumers said they\u2019d been cutting down on the number of items that they\u2019d been buying.
\nMore recently, and at a high level, retail sales data has shown that as recently as June, sales were flat. The data shows that big-ticket items have been on the downswing, a finding corroborated by earnings. Even Amazon has not been immune from consumer cutbacks.\u00a0
\nWhat follows is a sampling of what\u2019s been happening amid earnings thus far \u2014 offering a mosaic of where the pullback has been, and where it may continue to prove a trend.\u00a0
\nWe\u2019re being a bit dramatic here. None of this is to say that the home furnishing industry will fall entirely by the wayside. But the frenzy of the pandemic \u2014 where consumers bought new properties and outfitted them, or simply decided to spruce up the existing homestead \u2014 is abating, at least for now.\u00a0
\nAs detailed in the latest earnings report, Wayfair saw its quarterly sales dip amid continued pressure on home goods consumers.
\n\u201cCustomers remain cautious in their spending on the home, and our credit card data suggests that the category correction now mirrors the magnitude of the peak-to-trough decline the home furnishing space experienced during the great financial crisis,\u201d Wayfair Co-founder, Co-chairman and CEO Niraj Shah said at the beginning of the week.\u00a0
\nThe company\u2019s second-quarter earnings showed total revenues dipping 1.7%, with U.S. revenues down 2%. Wayfair also saw a 2.9% decrease in the number of orders delivered, as well as a 2.4% decrease in orders by repeat customers.
\nA host of travel-focused firms and platforms have also posted slowing growth, with last-minute bookings indicating that consumers and families might be thinking long and hard as to whether the trips are affordable.
\nDisney is seeing what it has termed a moderation in demand for its Parks business, where revenues were up a scant 2%.\u00a0
\nAirbnb said that shorter lead times have been the norm the past month, which is what happens during times of macro uncertainty. Revenue growth, which had been in the 11% range in the latest quarter, looks set to slow to a guided 8% to 10% range.\u00a0
\nThe above categories are big-ticket items, but even smaller purchases are seeing some pullback.
\nStarbucks showed in its latest earnings results\u00a0that store traffic was down 6% in the U.S.
\nAsked by analysts on the call about that pullback, CEO Laxman Narasimhan said: \u201cWe are operating in a challenging consumer environment. You see the impact of that in away-from-home consumption. If you look at our business at home, the grocery stores with our brands, you\u2019re seeing volume increase, you\u2019re seeing share increase in a category that\u2019s in decline, but we see volume increase at home.\u201d
\nThe implication here is that folks are bringing their morning jolt in house, so to speak.
\nAs for paying for it all, consumer borrowing rose less than expected in June, and revolving credit actually declined, pointing to at least some hesitation to use cards as well as an inclination to pay down debt where possible.\u00a0
\nThe post From Travel to Coffee to eCommerce, Consumers are Pulling Back appeared first on PYMNTS.com.
\n", "content_text": "Consumers are thinking twice before pulling the trigger to buy even everyday items \u2014 a hesitation to spend\u00a0that\u2019s evidencing itself in slowdowns and headwinds for all manner of firms across all avenues of commerce.\u00a0\nThere\u2019s resilience, to be sure, but the resilience looks to be flagging, at least a bit, and depending on where you look.\nThe pressures have been in place for some time.\nAs PYMNTS noted in February, coming off the holiday shopping season, 32.5% of consumers had said that they\u2019d reduced the quality of items that had bought, and more than 61% of consumers said they\u2019d been cutting down on the number of items that they\u2019d been buying.\nMore recently, and at a high level, retail sales data has shown that as recently as June, sales were flat. The data shows that big-ticket items have been on the downswing, a finding corroborated by earnings. Even Amazon has not been immune from consumer cutbacks.\u00a0\nWhat follows is a sampling of what\u2019s been happening amid earnings thus far \u2014 offering a mosaic of where the pullback has been, and where it may continue to prove a trend.\u00a0\nCurtains for the Home Furnishing Spending?\nWe\u2019re being a bit dramatic here. None of this is to say that the home furnishing industry will fall entirely by the wayside. But the frenzy of the pandemic \u2014 where consumers bought new properties and outfitted them, or simply decided to spruce up the existing homestead \u2014 is abating, at least for now.\u00a0\nAs detailed in the latest earnings report, Wayfair saw its quarterly sales dip amid continued pressure on home goods consumers.\n\u201cCustomers remain cautious in their spending on the home, and our credit card data suggests that the category correction now mirrors the magnitude of the peak-to-trough decline the home furnishing space experienced during the great financial crisis,\u201d Wayfair Co-founder, Co-chairman and CEO Niraj Shah said at the beginning of the week.\u00a0\nThe company\u2019s second-quarter earnings showed total revenues dipping 1.7%, with U.S. revenues down 2%. Wayfair also saw a 2.9% decrease in the number of orders delivered, as well as a 2.4% decrease in orders by repeat customers.\nStepping Away From Getting Away From it All\nA host of travel-focused firms and platforms have also posted slowing growth, with last-minute bookings indicating that consumers and families might be thinking long and hard as to whether the trips are affordable.\nDisney is seeing what it has termed a moderation in demand for its Parks business, where revenues were up a scant 2%.\u00a0 \nAirbnb said that shorter lead times have been the norm the past month, which is what happens during times of macro uncertainty. Revenue growth, which had been in the 11% range in the latest quarter, looks set to slow to a guided 8% to 10% range.\u00a0\nMaking the Coffee at Home?\nThe above categories are big-ticket items, but even smaller purchases are seeing some pullback. \nStarbucks showed in its latest earnings results\u00a0that store traffic was down 6% in the U.S. \nAsked by analysts on the call about that pullback, CEO Laxman Narasimhan said: \u201cWe are operating in a challenging consumer environment. You see the impact of that in away-from-home consumption. If you look at our business at home, the grocery stores with our brands, you\u2019re seeing volume increase, you\u2019re seeing share increase in a category that\u2019s in decline, but we see volume increase at home.\u201d \nThe implication here is that folks are bringing their morning jolt in house, so to speak.\nAs for paying for it all, consumer borrowing rose less than expected in June, and revolving credit actually declined, pointing to at least some hesitation to use cards as well as an inclination to pay down debt where possible.\u00a0 \nThe post From Travel to Coffee to eCommerce, Consumers are Pulling Back appeared first on PYMNTS.com.", "date_published": "2024-08-09T14:07:58-04:00", "date_modified": "2024-08-09T14:07:58-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/consumers-spending-retail-economy.jpg", "tags": [ "Airbnb", "Amazon", "consumer insights", "Consumer Spending", "Earnings", "ecommerce", "economy", "food and beverages", "furniture", "hospitality", "News", "online shopping", "PYMNTS News", "QSRs", "Restaurants", "Retail", "starbucks", "travel", "Wayfair" ] }, { "id": "https://www.pymnts.com/?p=2050115", "url": "https://www.pymnts.com/news/retail/2024/macys-vice-president-restructuring-aims-elevate-customer-experience-drive-growth/", "title": "Macy\u2019s VP: Restructuring Aims to Elevate Customer Experience and Drive Growth", "content_html": "Earlier this year, Macy\u2019s launched a restructuring initiative called \u201cA Bold New Chapter,\u201d aimed at reinvigorating the company and driving growth.
\nThe strategy focuses on strengthening the core Macy\u2019s brand through store enhancements, expanded product offerings and cost reductions.
\nA major theme of Macy\u2019s overarching strategy is elevating the customer experience through a culture shift, which ties back to the company\u2019s \u201cA Bold New Chapter\u201d strategy. The new framework is guiding Macy\u2019s officials on how to reposition the company, enhance the customer experience, deliver profitable growth and unlock shareholder value.
\n\u201cIt is rooted in investments and learnings that we\u2019ve iterated over the past year, but more importantly, it\u2019s a signal to our organization that is driving a major shift in culture,\u201d PJ Singh, vice president of stores strategy and product management at Macy\u2019s, explained in an interview with PYMNTS. \u201cWe believe that a more engaged and inspired colleague community is vital before you go external and reach your customer. As a result, we are taking an inside-out approach to delivering customer experience and challenging ourselves on the things our customers have told us are points of friction.\u201d
\nIn February, Macy\u2019s announced the closings of about 150 underperforming stores and geared investments toward high-priority locations and small-format stores. To capture opportunities in the luxury sector, the company accelerated the expansion of its Bloomingdale\u2019s and Bluemercury brands. Concurrently, Macy\u2019s streamlined its operations and enhanced its supply chain, adding tech to improve efficiency.
\nSingh said Macy\u2019s is reviewing business processes and environments, visual design and merchandising offerings, adding, \u201cthis approach to receiving more direct and candid insight from our store leaders is pivotal in how we define our actions to enhance the customer experience.\u201d
\nUnder the \u201cA Bold New Chapter\u201d strategy, Macy\u2019s aims to improve its in-store experience and create a more seamless, omnichannel shopping journey, Singh noted.
\n\u201cOver the past year, we tested and iterated various tactics in a small number of test stores, called our First 50, and we\u2019re continuing to build on those learnings,\u201d he explained. \u201cThe treatments in these stores are guided and modified by teams from across Macy\u2019s and are built on the feedback we hear directly from our store managers. The First 50 stores are a good representation of our nationwide, geographic footprint, and we have seen improved experience results supported by more colleagues on the floor, a more focused and stronger merchandising and visual representation, and more events in-store that are bringing animation and some retail theater to elevate the customer experience.\u201d
\nPart of the overall strategy, Singh said, is \u201ctied to improvements we\u2019re making in modernizing the shopping environment to ensure an inspiring, enjoyable and convenient experience across all channels. We continue to build our selling culture through a dedicated focus on coaching, more robust training, and setting role-specific behaviors and goals. We measure this through our traffic and conversion performance, improvements to average order value, and NPS.\u201d
\nWhat prompted Macy\u2019s to pursue this new strategy and how has the customer experience changed?
\n\u201cOur customer prompted this pursuit,\u201d Singh said. \u201cThey expect more from us in delivering a better experience through all of the channels we serve them through.\u201d
\nThis process involved a thorough review of business practices and store operations to address functional silos, improve decision-making and enhance the store environment. Key areas of focus included optimizing visual merchandising, refining event planning and increasing employee engagement to better serve customers.
\n\u201cThe voice of our store colleagues is amplified in this mission as they are the best ambassadors of the Macy\u2019s brand and have the most direct connection to experiences that matter and friction that, at times, can get in the way,\u201d Singh said. \u201cOur colleagues are the difference makers and operate with a high degree of pride in the Macy\u2019s brand. Our pursuit is to continue to bolster that pride and have it show up more meaningfully for our customers.\u201d
\nConsumers are becoming more digitally savvy and value the interplay of physical and digital offerings, Singh explained.
\n\u201cWe look at our business through the lens of the customers we serve in markets, not just the channels they use to shop with us,\u201d he said. \u201cThe store\u2019s teams are deeply invested in informing and enabling our digital initiatives, and same goes for the understanding that our digital teams have in the decisions that impact our store customer. Our strategy involves modernizing the shopping experience and making it frictionless across all channels.\u201d
\nFor all PYMNTS retail and digital transformation coverage, subscribe to the daily Retail and Digital Transformation Newsletters.
\nThe post Macy\u2019s VP: Restructuring Aims to Elevate Customer Experience and Drive Growth appeared first on PYMNTS.com.
\n", "content_text": "Earlier this year, Macy\u2019s launched a restructuring initiative called \u201cA Bold New Chapter,\u201d aimed at reinvigorating the company and driving growth.\nThe strategy focuses on strengthening the core Macy\u2019s brand through store enhancements, expanded product offerings and cost reductions.\nA major theme of Macy\u2019s overarching strategy is elevating the customer experience through a culture shift, which ties back to the company\u2019s \u201cA Bold New Chapter\u201d strategy. The new framework is guiding Macy\u2019s officials on how to reposition the company, enhance the customer experience, deliver profitable growth and unlock shareholder value.\n\u201cIt is rooted in investments and learnings that we\u2019ve iterated over the past year, but more importantly, it\u2019s a signal to our organization that is driving a major shift in culture,\u201d PJ Singh, vice president of stores strategy and product management at Macy\u2019s, explained in an interview with PYMNTS. \u201cWe believe that a more engaged and inspired colleague community is vital before you go external and reach your customer. As a result, we are taking an inside-out approach to delivering customer experience and challenging ourselves on the things our customers have told us are points of friction.\u201d\nIn February, Macy\u2019s announced the closings of about 150 underperforming stores and geared investments toward high-priority locations and small-format stores. To capture opportunities in the luxury sector, the company accelerated the expansion of its Bloomingdale\u2019s and Bluemercury brands. Concurrently, Macy\u2019s streamlined its operations and enhanced its supply chain, adding tech to improve efficiency.\nSingh said Macy\u2019s is reviewing business processes and environments, visual design and merchandising offerings, adding, \u201cthis approach to receiving more direct and candid insight from our store leaders is pivotal in how we define our actions to enhance the customer experience.\u201d\nUnder the \u201cA Bold New Chapter\u201d strategy, Macy\u2019s aims to improve its in-store experience and create a more seamless, omnichannel shopping journey, Singh noted.\n\u201cOver the past year, we tested and iterated various tactics in a small number of test stores, called our First 50, and we\u2019re continuing to build on those learnings,\u201d he explained. \u201cThe treatments in these stores are guided and modified by teams from across Macy\u2019s and are built on the feedback we hear directly from our store managers. The First 50 stores are a good representation of our nationwide, geographic footprint, and we have seen improved experience results supported by more colleagues on the floor, a more focused and stronger merchandising and visual representation, and more events in-store that are bringing animation and some retail theater to elevate the customer experience.\u201d\nPart of the overall strategy, Singh said, is \u201ctied to improvements we\u2019re making in modernizing the shopping environment to ensure an inspiring, enjoyable and convenient experience across all channels. We continue to build our selling culture through a dedicated focus on coaching, more robust training, and setting role-specific behaviors and goals. We measure this through our traffic and conversion performance, improvements to average order value, and NPS.\u201d\nWhat prompted Macy\u2019s to pursue this new strategy and how has the customer experience changed?\n\u201cOur customer prompted this pursuit,\u201d Singh said. \u201cThey expect more from us in delivering a better experience through all of the channels we serve them through.\u201d\nThis process involved a thorough review of business practices and store operations to address functional silos, improve decision-making and enhance the store environment. Key areas of focus included optimizing visual merchandising, refining event planning and increasing employee engagement to better serve customers.\n\u201cThe voice of our store colleagues is amplified in this mission as they are the best ambassadors of the Macy\u2019s brand and have the most direct connection to experiences that matter and friction that, at times, can get in the way,\u201d Singh said. \u201cOur colleagues are the difference makers and operate with a high degree of pride in the Macy\u2019s brand. Our pursuit is to continue to bolster that pride and have it show up more meaningfully for our customers.\u201d\nConsumers are becoming more digitally savvy and value the interplay of physical and digital offerings, Singh explained.\n\u201cWe look at our business through the lens of the customers we serve in markets, not just the channels they use to shop with us,\u201d he said. \u201cThe store\u2019s teams are deeply invested in informing and enabling our digital initiatives, and same goes for the understanding that our digital teams have in the decisions that impact our store customer. Our strategy involves modernizing the shopping experience and making it frictionless across all channels.\u201d\nFor all PYMNTS retail and digital transformation coverage, subscribe to the daily Retail and Digital Transformation Newsletters.\nThe post Macy\u2019s VP: Restructuring Aims to Elevate Customer Experience and Drive Growth appeared first on PYMNTS.com.", "date_published": "2024-08-09T14:01:38-04:00", "date_modified": "2024-08-09T14:01:38-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Macys.jpg", "tags": [ "brick and mortar", "digital transformation", "ecommerce", "Luxury", "Macy\u2019s", "News", "omnichannel", "PYMNTS News", "Retail", "supply chain management" ] }, { "id": "https://www.pymnts.com/?p=2050053", "url": "https://www.pymnts.com/news/retail/2024/how-consumers-shop-five-insights-from-pymnts-intelligence-reports/", "title": "How Consumers Shop: Five Insights From This Year\u2019s PYMNTS Intelligence Reports", "content_html": "So far this year, PYMNTS Intelligence data has illuminated a wide range of shopper behaviors, highlighting how omnichannel engagement is changing over time and how economic pressures are impacting spending habits.
\nHere are five key takeaways about shopper behavior from 2024 so far.
\n Shopper\u201cThe 2024 Global Digital Shopping Index\u201d gleaned insights from a survey of nearly 14,000 consumers across seven countries about their omnichannel buying behaviors and preferences. The results revealed that roughly 4 in 10 consumers are now Click-and-Mortar shoppers, favoring purchasing journeys that combine the digital and the physical over pure-play brick-and-mortar or eCommerce.
Specifically, 25% are now digitally assisted in-store shoppers, opting to use connected technologies to improve their brick-and-mortar journeys. Another 14% are pickup shoppers, preferring to make their purchases digitally and collect them on-site.
\nData from the \u201cU.S. Edition\u201d of the same Index, for which PYMNTS Intelligence surveyed more than 2,400 United States consumers, revealed that these digitally assisted shoppers are more satisfied with their retail experiences than those who do not use such tools.
\nThe study found that customer satisfaction for those shopping in-store with digital assistance is 65% higher than that of those shopping in-store without digital assistance.
\nThe 2024 edition of PYMNTS Intelligence\u2019s \u201cHow the World Does Digital\u201d report drew from a survey of 67,000 consumers across 11 countries that make up approximately half of the world\u2019s gross domestic product to understand how they engage with various digital activities throughout their daily lives.
\nThe results revealed that when it comes to online shopping, young and wealthy consumers lead the way. Twenty-one percent of consumers engage in online shopping each week, and that share rises to 27% for high-income shoppers and 35% for Generation Z. Plus, 1 in 4 consumers shops from a digital marketplace each week, and that increases to 33% for wealthy consumers and 37% for Gen Z.
\nThe PYMNTS Intelligence study \u201cGeneration Zillennial: How They Shop\u201d was based on a survey of more than 3,600 U.S. consumers to understand shoppers in different generations\u2019 preferences and behaviors around shopping. It focused especially on zillennials, the micro-generation of younger millennial and older Gen Z consumers born between 1991 and 1999.
\nThe results revealed that the factor that most often affects younger consumers\u2019 decisions about where to shop is recommendations from their friends or family. Forty-two percent of Gen Z consumers, 39% of zillennials and 37% of millennials said they had made purchases in the previous 30 days at least partially due to the influence of these, compared to just 30% of the population overall.
\nFor the February/March installment of the \u201cNew Reality Check: The Paycheck-to-Paycheck Report\u201d series, PYMNTS Intelligence surveyed more than 4,200 U.S. consumers to understand their saving and spending habits.
\nThe study revealed that amid rising retail prices, 60% of shoppers reduced their purchasing of nonessential products, and half switched to cheaper merchants. Plus, a smaller but still significant share of shoppers switched to buying less expensive versions of the same products. Forty-five percent of low-income shoppers, 41% of middle-income and 28% of high-income shoppers said they had traded down on quality in the previous year.
\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
\nThe post How Consumers Shop: Five Insights From This Year\u2019s PYMNTS Intelligence Reports appeared first on PYMNTS.com.
\n", "content_text": "So far this year, PYMNTS Intelligence data has illuminated a wide range of shopper behaviors, highlighting how omnichannel engagement is changing over time and how economic pressures are impacting spending habits.\nHere are five key takeaways about shopper behavior from 2024 so far.\nThe Rise of the Click-and-Mortar Shopper\n\u201cThe 2024 Global Digital Shopping Index\u201d gleaned insights from a survey of nearly 14,000 consumers across seven countries about their omnichannel buying behaviors and preferences. The results revealed that roughly 4 in 10 consumers are now Click-and-Mortar shoppers, favoring purchasing journeys that combine the digital and the physical over pure-play brick-and-mortar or eCommerce.\nSpecifically, 25% are now digitally assisted in-store shoppers, opting to use connected technologies to improve their brick-and-mortar journeys. Another 14% are pickup shoppers, preferring to make their purchases digitally and collect them on-site.\nOmnichannel Boosts Shopper Satisfaction\nData from the \u201cU.S. Edition\u201d of the same Index, for which PYMNTS Intelligence surveyed more than 2,400 United States consumers, revealed that these digitally assisted shoppers are more satisfied with their retail experiences than those who do not use such tools.\nThe study found that customer satisfaction for those shopping in-store with digital assistance is 65% higher than that of those shopping in-store without digital assistance.\nHigh-Income and Gen Z Shoppers Lead eCommerce Adoption\nThe 2024 edition of PYMNTS Intelligence\u2019s \u201cHow the World Does Digital\u201d report drew from a survey of 67,000 consumers across 11 countries that make up approximately half of the world\u2019s gross domestic product to understand how they engage with various digital activities throughout their daily lives.\nThe results revealed that when it comes to online shopping, young and wealthy consumers lead the way. Twenty-one percent of consumers engage in online shopping each week, and that share rises to 27% for high-income shoppers and 35% for Generation Z. Plus, 1 in 4 consumers shops from a digital marketplace each week, and that increases to 33% for wealthy consumers and 37% for Gen Z.\nPeer Recommendations Guide Young Consumers\u2019 Shopping Choices\nThe PYMNTS Intelligence study \u201cGeneration Zillennial: How They Shop\u201d was based on a survey of more than 3,600 U.S. consumers to understand shoppers in different generations\u2019 preferences and behaviors around shopping. It focused especially on zillennials, the micro-generation of younger millennial and older Gen Z consumers born between 1991 and 1999.\nThe results revealed that the factor that most often affects younger consumers\u2019 decisions about where to shop is recommendations from their friends or family. Forty-two percent of Gen Z consumers, 39% of zillennials and 37% of millennials said they had made purchases in the previous 30 days at least partially due to the influence of these, compared to just 30% of the population overall.\nInflation Prompts Spending Cutbacks\nFor the February/March installment of the \u201cNew Reality Check: The Paycheck-to-Paycheck Report\u201d series, PYMNTS Intelligence surveyed more than 4,200 U.S. consumers to understand their saving and spending habits.\nThe study revealed that amid rising retail prices, 60% of shoppers reduced their purchasing of nonessential products, and half switched to cheaper merchants. Plus, a smaller but still significant share of shoppers switched to buying less expensive versions of the same products. Forty-five percent of low-income shoppers, 41% of middle-income and 28% of high-income shoppers said they had traded down on quality in the previous year.\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.\nThe post How Consumers Shop: Five Insights From This Year\u2019s PYMNTS Intelligence Reports appeared first on PYMNTS.com.", "date_published": "2024-08-09T12:50:00-04:00", "date_modified": "2024-08-09T12:50:00-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/08/retail-sales.jpg", "tags": [ "Click-and-Mortar\u2122", "Consumer Spending", "ecommerce", "economy", "Generation Z", "Generation Zillennial: How They Shop", "How the World Does Digital", "inflation", "New Reality Check: The Paycheck-To-Paycheck Report", "News", "omnichannel", "PYMNTS Intelligence", "PYMNTS News", "PYMNTS Study", "Retail", "The 2024 Global Digital Shopping Index", "trade down" ] }, { "id": "https://www.pymnts.com/?p=2049394", "url": "https://www.pymnts.com/news/retail/2024/whos-faster-amazon-and-walmart-race-to-meet-demand-for-instant-delivery/", "title": "Who\u2019s Faster? Amazon and Walmart Race to Meet Demand for Instant Delivery", "content_html": "As retail giants Amazon and Walmart compete to be consumers\u2019 go-to for more of their day-to-day needs, the two companies are looking to delivery times as a key factor influencing shopper loyalty.
\nAmazon, for its part, shared on its Q2 earnings call last week how boosting delivery speeds is increasing consumers\u2019 spending in key consumables categories.
\n\u201cWe delivered our fastest speeds ever so far this year, which helps drive strength in areas like our everyday essentials,\u201d the eCommerce company\u2019s SVP and CFO Brian Olsavsky told analysts. \u201cThese include items like nonperishable foods, as well as health, beauty, and personal care items and Prime members continue to increase their shopping frequency while growing their spend on Amazon. Overall unit sales grew 11% year over year.\u201d
\nCEO Andy Jassy observed that faster delivery, with over 5 billion units arriving same-day or next-day, significantly boosts customer engagement, particularly in these basic needs categories. This efficiency not only supports higher shopping frequencies but also enhances customer loyalty, reinforcing Amazon\u2019s position as a preferred retailer.
\nWalmart too evidently has its sights set on speed of fulfillment. The company focused on this area in its first annual \u201cAdaptive Retail Report\u201d late last month, highlighting findings that 58% of consumers surveyed were not willing to wait more than a day for grocery delivery and that 22% expect their groceries in 1 to 2 hours.
\nThe inclusion of this finding speaks to Walmart\u2019s efforts to shorten its delivery times and to grow consumers\u2019 adoption of its on-demand delivery channels. Indeed, the company is stepping up its speed of fulfillment around the world.
\n\u201cLike the U.S., the international team is improving speed of delivery across markets. Same-day delivery orders in India grew by over 150% in the quarter and is now available across 20 major cities,\u201d CEO Doug McMillon told analysts on the company\u2019s last earnings call. \u201cOne-hour delivery in China grew to 55 million orders as customers sought convenience during Chinese New Year. And in Chile, 60% of e-commerce orders are delivered same day.\u201d
\nAs it stands, Amazon is in the lead by a considerable margin when it comes to consumers\u2019 retail spending, per data from PYMNTS Intelligence\u2019s Whole Paycheck Report. The study, which looks at each company\u2019s earnings reports as well as data from the e U.S. Census Bureau and Bureau of Economic Analysis, estimated that, at the close of last year, Amazon captured a 10% share of consumers\u2019 total retail spending, while Walmart captured 7.3%.
\nOverall, consumers expect speedy deliveries. Findings highlighted in the January installment of the PYMNTS Intelligence Real-Time Payments Tracker\u00ae revealed that 78% of consumers say that they look for same- or next-day shipping when making a purchase.
\n\u00a0As the two major retail companies compete for rapid delivery, Amazon\u2019s aggressive push to enhance delivery speeds has already demonstrated tangible benefits, translating into increased consumer spending and bolstered customer loyalty. Meanwhile, Walmart is not far behind, accelerating its efforts to meet the rising consumer demand for swift and efficient service both domestically and internationally. As both giants vie for the top spot, their success will increasingly hinge on their ability to deliver not just products, but also exceptional speed and convenience. In a landscape where the vast majority of consumers prioritize quick shipping, the future will likely see even greater innovations and competition in the quest to redefine instant gratification.
\nFor all PYMNTS retail coverage, subscribe to the daily\u00a0Retail Newsletter.
\nThe post Who\u2019s Faster? Amazon and Walmart Race to Meet Demand for Instant Delivery appeared first on PYMNTS.com.
\n", "content_text": "As retail giants Amazon and Walmart compete to be consumers\u2019 go-to for more of their day-to-day needs, the two companies are looking to delivery times as a key factor influencing shopper loyalty.\nAmazon, for its part, shared on its Q2 earnings call last week how boosting delivery speeds is increasing consumers\u2019 spending in key consumables categories.\n\u201cWe delivered our fastest speeds ever so far this year, which helps drive strength in areas like our everyday essentials,\u201d the eCommerce company\u2019s SVP and CFO Brian Olsavsky told analysts. \u201cThese include items like nonperishable foods, as well as health, beauty, and personal care items and Prime members continue to increase their shopping frequency while growing their spend on Amazon. Overall unit sales grew 11% year over year.\u201d\nCEO Andy Jassy observed that faster delivery, with over 5 billion units arriving same-day or next-day, significantly boosts customer engagement, particularly in these basic needs categories. This efficiency not only supports higher shopping frequencies but also enhances customer loyalty, reinforcing Amazon\u2019s position as a preferred retailer.\nWalmart too evidently has its sights set on speed of fulfillment. The company focused on this area in its first annual \u201cAdaptive Retail Report\u201d late last month, highlighting findings that 58% of consumers surveyed were not willing to wait more than a day for grocery delivery and that 22% expect their groceries in 1 to 2 hours.\nThe inclusion of this finding speaks to Walmart\u2019s efforts to shorten its delivery times and to grow consumers\u2019 adoption of its on-demand delivery channels. Indeed, the company is stepping up its speed of fulfillment around the world.\n\u201cLike the U.S., the international team is improving speed of delivery across markets. Same-day delivery orders in India grew by over 150% in the quarter and is now available across 20 major cities,\u201d CEO Doug McMillon told analysts on the company\u2019s last earnings call. \u201cOne-hour delivery in China grew to 55 million orders as customers sought convenience during Chinese New Year. And in Chile, 60% of e-commerce orders are delivered same day.\u201d\nAs it stands, Amazon is in the lead by a considerable margin when it comes to consumers\u2019 retail spending, per data from PYMNTS Intelligence\u2019s Whole Paycheck Report. The study, which looks at each company\u2019s earnings reports as well as data from the e U.S. Census Bureau and Bureau of Economic Analysis, estimated that, at the close of last year, Amazon captured a 10% share of consumers\u2019 total retail spending, while Walmart captured 7.3%.\nOverall, consumers expect speedy deliveries. Findings highlighted in the January installment of the PYMNTS Intelligence Real-Time Payments Tracker\u00ae revealed that 78% of consumers say that they look for same- or next-day shipping when making a purchase.\n\u00a0As the two major retail companies compete for rapid delivery, Amazon\u2019s aggressive push to enhance delivery speeds has already demonstrated tangible benefits, translating into increased consumer spending and bolstered customer loyalty. Meanwhile, Walmart is not far behind, accelerating its efforts to meet the rising consumer demand for swift and efficient service both domestically and internationally. As both giants vie for the top spot, their success will increasingly hinge on their ability to deliver not just products, but also exceptional speed and convenience. In a landscape where the vast majority of consumers prioritize quick shipping, the future will likely see even greater innovations and competition in the quest to redefine instant gratification.\n\nFor all PYMNTS retail coverage, subscribe to the daily\u00a0Retail Newsletter.\n\nThe post Who\u2019s Faster? Amazon and Walmart Race to Meet Demand for Instant Delivery appeared first on PYMNTS.com.", "date_published": "2024-08-09T04:01:59-04:00", "date_modified": "2024-08-08T21:57:38-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/08/amazon-delivery-3.jpg", "tags": [ "Amazon", "Amazon vs Walmart", "Andy Jassy", "delivery", "Doug McMillon", "Earnings", "ecommerce", "Featured News", "grocery", "News", "PYMNTS News", "Retail", "same-day delivery", "walmart" ] }, { "id": "https://www.pymnts.com/?p=2049311", "url": "https://www.pymnts.com/news/retail/2024/qvc-taps-underpenetrated-generation-x-social-commerce-opportunity/", "title": "QVC CEO Aims Social Commerce at Gen Z Parents", "content_html": "Amid merchants\u2019 gold rush for young consumers\u2019 social commerce spending, Qurate Retail is focusing on an often-overlooked demographic: Generation X and baby boomer women on social media and other digital platforms.
\nThe company, which owns shopping channels QVC and HSN as well as other retail brands such as Garnet Hill and Ballard Designs, shared on a call discussing its second-quarter 2024 earnings results Thursday (Aug. 8) how QVC is targeting these older female shoppers.
\nQurate Retail President and CEO David Rawlinson talked about how the live shopping brand\u2019s Age of Possibility campaign, launched in the spring, has enabled it \u201cto better serve the attractive demographic of women 50-plus,\u201d collaborating with 50 celebrity women over the age of 50. The campaign has been successful at drawing digital engagement.
\n\u201cSince launch, we have experienced strong initial reaction to this campaign, with 38 billion earned media impressions, 330,000 new Facebook community members, a nearly 200% increase in the number of QVC social followers and more than 1 million visits to [the] QVC campaign website,\u201d Rawlinson said during the call. \u201cWe saw strong demand from Age-of-Possibility-related brands in Q2, with collective demand for the existing 12 brands up low-double-digits after the campaign launch.\u201d
\nWhile consumers over 50 may be slower to adopt online shopping channels such as social commerce than their younger counterparts, they still represent a sizable opportunity. Supplemental research from the PYMNTS Intelligence study \u201cTracking the Digital Payments Takeover: Monetizing Social Media\u201d found that 41% of Gen X consumers searched for products on social media, and 12% made a purchase.
\nThe same goes for online shopping. The latest edition of PYMNTS Intelligence\u2019s \u201cHow the World Does Digital\u201d study, which was based on surveys of more than 67,000 consumers across 11 countries, found that 18% of Gen X consumers shop online each week, as do 10% of baby boomers.
\nQurate\u2019s results overall highlighted softness in certain retail categories as consumers continue to grapple with ongoing financial challenges. While revenue from jewelry surged by 12%, other categories such as beauty, apparel and accessories faced declines. This caution could be seen in the results of QxH, the segment of Qurate Retail comprised of QVC US and HSN.
\n\u201cQxH revenue was pressured by macro factors, including inflation, as consumers continue to spend mostly on necessities and less on discretionary purchases,\u201d Rawlinson said during the call.
\nAgainst that backdrop, the Cornerstone segment, which spans five home and apparel lifestyle brands, saw a 14% revenue decline attributed to continued softness in the home sector. Rawlinson noted that the prolonged slump in the housing market, combined with elevated mortgage rates, has dampened consumer enthusiasm for home-related purchases, further illustrating the impact of macroeconomic factors on spending behavior.
\nAmid a challenging economic landscape, consumers are demonstrating increased selectivity, with a focus on necessities and value-driven purchases. Qurate Retail\u2019s revenue declined by 9% year over year, influenced by lower unit volumes at QxH and the softness impacting Cornerstone. Despite these top-line pressures, Qurate achieved a 4% increase in adjusted OIBDA, driven by margin improvements across its business units.
\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.
\nThe post QVC CEO Aims Social Commerce at Gen Z Parents appeared first on PYMNTS.com.
\n", "content_text": "Amid merchants\u2019 gold rush for young consumers\u2019 social commerce spending, Qurate Retail is focusing on an often-overlooked demographic: Generation X and baby boomer women on social media and other digital platforms.\nThe company, which owns shopping channels QVC and HSN as well as other retail brands such as Garnet Hill and Ballard Designs, shared on a call discussing its second-quarter 2024 earnings results Thursday (Aug. 8) how QVC is targeting these older female shoppers.\nQurate Retail President and CEO David Rawlinson talked about how the live shopping brand\u2019s Age of Possibility campaign, launched in the spring, has enabled it \u201cto better serve the attractive demographic of women 50-plus,\u201d collaborating with 50 celebrity women over the age of 50. The campaign has been successful at drawing digital engagement.\n\u201cSince launch, we have experienced strong initial reaction to this campaign, with 38 billion earned media impressions, 330,000 new Facebook community members, a nearly 200% increase in the number of QVC social followers and more than 1 million visits to [the] QVC campaign website,\u201d Rawlinson said during the call. \u201cWe saw strong demand from Age-of-Possibility-related brands in Q2, with collective demand for the existing 12 brands up low-double-digits after the campaign launch.\u201d\nWhile consumers over 50 may be slower to adopt online shopping channels such as social commerce than their younger counterparts, they still represent a sizable opportunity. Supplemental research from the PYMNTS Intelligence study \u201cTracking the Digital Payments Takeover: Monetizing Social Media\u201d found that 41% of Gen X consumers searched for products on social media, and 12% made a purchase.\nThe same goes for online shopping. The latest edition of PYMNTS Intelligence\u2019s \u201cHow the World Does Digital\u201d study, which was based on surveys of more than 67,000 consumers across 11 countries, found that 18% of Gen X consumers shop online each week, as do 10% of baby boomers.\nQurate\u2019s results overall highlighted softness in certain retail categories as consumers continue to grapple with ongoing financial challenges. While revenue from jewelry surged by 12%, other categories such as beauty, apparel and accessories faced declines. This caution could be seen in the results of QxH, the segment of Qurate Retail comprised of QVC US and HSN.\n\u201cQxH revenue was pressured by macro factors, including inflation, as consumers continue to spend mostly on necessities and less on discretionary purchases,\u201d Rawlinson said during the call.\nAgainst that backdrop, the Cornerstone segment, which spans five home and apparel lifestyle brands, saw a 14% revenue decline attributed to continued softness in the home sector. Rawlinson noted that the prolonged slump in the housing market, combined with elevated mortgage rates, has dampened consumer enthusiasm for home-related purchases, further illustrating the impact of macroeconomic factors on spending behavior.\nAmid a challenging economic landscape, consumers are demonstrating increased selectivity, with a focus on necessities and value-driven purchases. Qurate Retail\u2019s revenue declined by 9% year over year, influenced by lower unit volumes at QxH and the softness impacting Cornerstone. Despite these top-line pressures, Qurate achieved a 4% increase in adjusted OIBDA, driven by margin improvements across its business units.\nFor all PYMNTS retail coverage, subscribe to the daily Retail Newsletter.\nThe post QVC CEO Aims Social Commerce at Gen Z Parents appeared first on PYMNTS.com.", "date_published": "2024-08-08T11:15:05-04:00", "date_modified": "2024-08-08T21:59:32-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/08/qvc.png", "tags": [ "Baby Boomers", "Consumer Spending", "Earnings", "ecommerce", "economy", "Featured News", "Generation X", "HSN", "News", "PYMNTS News", "Qurate Retail", "QVC", "Retail", "Retail sales", "Revenue", "social commerce" ] } ] }