UPDATE: Holidays May Herald The Year Of The Mobile Shopper
05 November 2011 - 8:29AM
Dow Jones News
When the holiday shopping frenzy of 2011 kicks off later this
month, it could be the year of the mobile shopper.
A record number of consumers will shop from their mobile devices
this coming season, according to a forecast from IBM Coremetrics,
which studies online data from 500 leading U.S. retailers. And
retailers seeking to tap into that trend will be forced to
adapt.
"It's going to play a big part of how consumers are buying this
holiday," said John Squire, chief strategy officer of IBM
Coremetrics, in an interview. "Mobile users have less patience.
They are surgical shoppers. Retailers are going to have to do a
really good job in targeting their messages and promotions for
mobile users."
A mobile device shopper spends an average of about 4 minutes on
a site, compared to a little over seven minutes for a site visit
from a regular computer.
Mobile shoppers also tend to do less browsing and look at fewer
products when they shop, making it more imperative for retailers to
personalize messages and content to cater to such visitors.
Among the retailers that have earned plaudits for targeting
mobile users are department stores including Macy's Inc. (M) ,
Nordstrom Inc. (JWN) and J.C. Penney Co. (JCP). All have launched
apps based on streamlined pages specifically for mobile use, and
fast downloads, designed as an alternative to conventional Web
browsing, Squire said.
Upscale department store Saks Inc. (SKS) said it will unveil its
first mobile app this holiday season.
As an illustration that their online and mobile strategy has
paid some dividends, the department store group has posted
above-average 20% online sales growth in each month of the year so
far. Adds Squire: "Retailers that saw these trends early have made
some good bets and investments."
For the first time, the percentage of shoppers buying from their
mobile phones is expected to rise above the double-digit threshold
to 15% in November, compared to 4.5% in last year's holiday season,
and less than 1% in 2009, Squire said.
In October, 9.6% of online shoppers made purchases through their
mobile devices, up from 3.4% a year earlier.
It's not just department stores that are catching on. Retailers
across the board, from Wal-Mart Stores Inc. (WMT) and Home Depot
Inc. (HD) to Gap Inc. (GPS) and Victoria's Secret parent Limited
Brands Inc. (LTD) have been ramping up efforts to expand their
online and mobile sales.
Sears Holdings Corp. (SHLD) said earlier this week that its
namesake department stores and Kmart discount chain is unveiling
mobile "shopping walls" located in high-traffic areas, including
movie theater lobbies, airports and bus stations. The spaces will
display so-called QR (quick-response) computer-generated bar-matrix
codes for each featured toy so shoppers can buy directly from their
smartphones.
For Sears, the trend toward online sales hits home. Sears has
posted declining sales in the first and second quarters as its U.S.
same-store sales dropped. In comparison, its online business unit
has grown 22% and 30% in those periods, respectively.
Increased mobile uses and purchases also have put extra pressure
on retailers including electronics giant Best Buy Co. (BBY) as
consumers comparison shop from their mobile devices while in
stores.
To win over consumers doing comparison shopping and encourage
early buying, Wal-Mart this holiday season will match its
competitors' print advertised prices between Nov. 1 and Dec. 25, a
much bigger time window. The company also will match prices offered
on Walmart.com if the prices are different form their store
prices.
Retailers also have been more proactive arming their employees
with iPads or other tablet devices to better service shoppers.
Sears, for instance, began rolling out iPads and iPod Touch devices
in about 450 of its Sears and Kmart stores to help customers check
inventory, access product information and order products
online.
Within the mobile arena, retailers may want to pay even more
attention to iPad users. About 6.8% of October site visits through
the iPad concluded with a purchase, compared to a 3.6% rate on
other mobile devices, Squire said.
Online sales in November are expected to rise 12% to 15% this
year, IBM estimated. By comparison the National Retail Federation
has forecast total holiday sales to rise just 2.8%.
Social networks, led by Facebook, also have been an emerging
factor in retail. According to the IBM data, 9.2% of consumers in
October that came to a retailer's web site from a social media site
made a purchase, compared to 5.5% who visited the store site
directly.
-Andria Cheng; 415-439-6400; AskNewswires@dowjones.com
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