A recent discussion on RetailWire discusses how crucial it is for retailers to integrate selling channels. If a customer wants to make a purchase online and pick up the item at the nearest store, then they should be able to do so. Wal-Mart does a great job with this. I believe most retailers know that they should be integrating their selling channels to keep up with the evolving shopper experience, but the problem lies in the technology investment and logistics of it all. Are most retailers ready to make the necessary monetary and time investments? Probably not. However, those retailers that already have integrated selling channels are ten steps ahead of competition.

What do you think? 

Retailers know that they will be facing a difficult back to school season this fall. They are aggressively introducing new products, slashing prices, and amping up marketing. However, despite these efforts, analysts say it will make little difference to consumers pressured by rising costs.

What do you think?

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What are retailers doing to increase sales? One strategy is offering deeper discounts. Nordstorm has slashed prices, starting at 40%, vs. 33% last year. While Nordstorm is offering deep discounts, other retailers are going after a different customer segment altogether. Earlier this year, Old Navy began pitching their clothing at twentysomethings. Now, their ideal customer is the budget-conscious mom shopping for herself and her family. When retailers realize slashing prices and targeting different customers altogether is not enough, what else can they do? Perhaps teaming up is the answer. For instance, retailer Macy’s has teamed up with FAO Schwarz to bring toys back to its stores.

Do price cuts work?

Yes, price cuts work in the short-term, especially during hard economic times when consumers are ultra price conscious. However, one problem retailers might face is that consumers will get use to the lower price points. Even when the economy does improve, customers might not be willing to pay full-price for items.

As a long-term strategy, price cutting does not work. One problem retailers might face is that they start a price war with competitors. Once this happens, prices will keep on dropping and no one wins.

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The intense heat across much of the U.S. sparked an increase in demand for items such as air conditioners, fans, cold drinks, and summer apparel. During the first week of June, sales for air conditioners increased 20%, bottled sales went up 4%, and 6% for swimwear over the same week in 2007.

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PetSmart, the #1 US specialty retailer of pet food and supplies, is focusing on more specialty services this year such as “doggy day camp” as well as overnight boarding which includes dessert and a belly rub. These news services are an effort to further differentiate PetSmart from competitors during tough economic times.

A retailer such as PetSmart should be measuring how effective their new services are through a customized survey.

Customer Surveys

What are PetSmart’s customers really thinking? Now, it would be difficult to ask Sparky, the Golden Retriever, whether or not he enjoyed dessert and a belly rub during his overnight stay since he cannot talk. Perhaps five consecutive barks for a five star rating? Well, maybe it would be best to stick to asking his pet owner for feedback. It’s important for retailers such as PetSmart to know what services are most beneficial to pet owners and which are not. Although Sparky would love to have a belly rub, if his owner thinks otherwise, Sparky will not get a belly rub. It’s important for any retailer to know what the essential services are and what the “extras” are.