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Valentine’s Day 2019 – US Shoppers Will Spend More

Posted on February 13, 2019

Valentine's Day 2019

Valentine’s Day 2019. Less traffic expected, but shoppers are spending more.

Last year’s results showed a nice 7% increase, compared to 2017’s spending, with a total of $19.6B spent by US consumers on their loved ones. The good news for online and brick-and-mortar retailers is that this progression is not going to stop there in 2019.

$20.7B. That’s the number expected to be spent on Valentine’s Day in 2019, according to a recent survey.

pets valentine's day

Valentine’s Day has become a holiday consumers take advantage of not only to spoil their significant other/spouse but also their family members, friends, and pets. In 2018, those 18-34 spent more money on their pets than usual and spent overall more than any other demographics.

According to the NRF Website and Prosper Insights & Analytics, we can expect the 35-44 to become the age bracket that will spend the most on Valentine’s Day, with an average of $279.14.

The average spending is supposed to increase, as well as the total spending. However, fewer people are expected to go shopping on Valentine’s Day with only 51% of the US consumers saying they would.

This increase in average spending quite possibly comes from the type of gifts people are planning on buying, as well as who is purchasing them.

Considering that Valentine’s day is recognized as a celebration of romance and love, it will come as no surprise that the US consumers favored jewelry products last year. $4.7B were spent on necklaces, rings, and other luxury items.

This trend is supposed to continue this year, according to this survey.

Those celebrating plan to spend $3.9 billion on jewelry in 2019. Generation X and Y will be the majority of the shoppers celebrating this holiday, and these generations are the main players of the working population. Therefore, even if this holiday doesn’t attract as many people as before, with an average of $161.96 spending predicted, 2019 is about to become Valentine’s Day’s most successful year.

Roses Valentine's Day

Retail remains king

While only 27% are expected to shop online for this special holiday, the vast majority of shoppers will visit physical businesses (department stores, discount stores, specialty stores, jewelry stores etc.).

Stay tuned next week for our Special Valentine’s Day Traffic Review to see if those predictions will match the numbers!

NRF 2019 Recap – In-store shopper analytics is flourishing

Posted on January 31, 2019

NRF 2019 in a few words

January in New York City is an exciting time of the year for retailers from all around the globe. The rush of the holiday season is over and retailers have had a couple of weeks to reflect on their performance. Despite mixed results, it was better than anticipated. Prodco’s 2018 Special Holiday Traffic Review even showed a year-over-year traffic increase of 22.77% for Super Weekend, affected mostly by Super Sunday on the 23rd, just 2 days away from Christmas day.

With the holiday season behind us, retailers will now completely focus on 2019. What better way to gain inspiration and broaden their network than to attend the world’s largest trade show in the retail industry?

Whilst at the NRF Retail’s Big Show this past January 2019, we had the chance to meet with diverse retail organizations. Various businesses and key players were represented, and as a result, we were able to gather valuable feedback and gain great insight into the forthcoming needs of an industry undergoing many changes.

Clothing Luxury Shop

In-store shopper behavior, transparency, and privacy

During those 3 exciting days, the focus on technology was undeniable and the demand from brick-and-mortar stores for advanced traffic analytics has exceeded our expectations.

Straight from the beginning, something appeared to stand out from the crowd. Moving forward, retailers will invest more in technologies that allow them to reduce costs. This article from the NRF goes over this point, amongst other goals and priorities for retailers in 2019.

However, after many discussions, we determined that this investment in technology goes beyond the basic requirement to reduce costs. Somewhere in between cost reduction and sales performance strategies, lies the need to truly understand who our customers really are.

Retailers know that further efforts are needed to compete with the indisputable rise of online transactions. As a result, they will invest more in solutions that offer in-depth analytics and insight into their traffic while respecting the privacy of their customers.

Nowadays, it has become very important for consumers to shop with a brand they trust and believe in on an ethical level. After spending 3 days in the Big Apple, we were convinced that brick-and-mortar stores understand this demand assuredly. While a large part of the industry is on the lookout for cutting-edge shopper analytics and traffic counting solutions, the need to simultaneously offer more transparency and more personalized customer experience seems to have become a prerogative for 2019.

Improving customer experience is also featured in this NRF article as one of the top priorities for retailers in 2019.

Prodco Booth NRF 2019

We strongly believe that, in order to improve customer experience, it is a prerequisite to have a deep understanding of your customers.

Nikki Baird, contributor at Forbes, says the following in her article regarding the outcomes of NRF 2019:

But the only way employees in stores are going to continue to be successful is if they can play an effective role in initiating, assisting, or completing an omnichannel journey. And that means having enough information about a customer to be useful in that role.

Figuring out the whole picture and knowing all the ins and outs will allow you to see what can be optimized and will make for an overall better experience for your customers.

In a nutshell, it was obvious that all retailers are beginning to have a tremendous interest in in-store shopper behavior and advanced analytics. To be able to compete, retail stores will have to, at the very least, keep up with basic traffic analytics and people counting solutions, especially since advanced Shopper Behavior Analytics is experiencing a strong increase in demand amongst many key influencers of the retail industry. In this edition of NRF Retail’s Big Show, we couldn’t deny the increasing interest that brick-and-mortar stores have to understand the true path-to-purchase and the intricate behavior of their customers.

Want to learn more about traffic analytics for brick-and-mortar? Check out our people counting solutions and advanced in-store shopper analytics for brick-and-mortar.

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Prodco’s 2018 Special Holiday Traffic Review

Posted on January 8, 2019

Holiday Traffic Review

USA Map

US Region

Executive Summary:

Prodco’s Retail Traffic Index for Super Weekend (December 22nd to December 23rd) shows a year-over-year increase of 22.77%, affected mostly by a 61.49% increase on Super Sunday (December 23rd). This year, consumers had more time to shop, which was a major factor that contributed to this increase.

“In sales terms, this has definitely been a very strong holiday — one of the best since 1999,” said Neil Saunders, managing director of research firm Global Data Retail. “Momentum in the consumer economy, confident shoppers and more discipline from retailers have all helped to boost spending.”

Canada Map

Canada Region

Executive Summary:

Prodco’s Retail Traffic Index for Boxing Day (Dec 26th, 2018) shows a year-over-year increase of 2.66%. The increase was mainly affected by an increase this year in lifestyle and accessories.

As Black Friday and pre-Boxing Day sales became more prevalent in Canada, Boxing Day might be losing its lustre. 27 per cent of people planned to shop on Boxing Day at brick-and-mortar stores.

Taken from RCC holiday 2018 survey, a large majority of Canadians (87 per cent) believe it’s important to support Canadian retailers during the holiday season.

More than a third of Canadians also said it’s more important to buy Canadian this year than it was last year.

Diane Brisebois, RCC president and CEO, said negotiations for the United States Mexico Canada Agreement (USMCA) seem “to have stirred national pride.”

If you would like to receive Prodco’s Retail Traffic Index Report on a weekly basis, please click here.

People Counting for Brick-and-Mortar Retailers is not Enough

Posted on December 14, 2018

Online Style Analytics for Retail

You can do more than Traffic Counting

Tally Counter and Dual Lens Camera

People Counting has been for Brick-and-Mortar retailers a standard for a very long time now. From the simplest form such as mechanical or electronic tally counter devices to advanced Wi-Fi counting systems, most of the retail stores will have a counting solution implemented to some extent.

A Quick recap on the Web

The first online transaction was supposedly made in 1994. Shortly after arrived the 2 giants, Amazon and eBay, who set the standard of online shopping for years to come.

In the early days of Web Analytics, people were borrowing ideas from the retail world in regards to marketing, sales strategy and, you guessed it, people counting.

Web Hit Counters

Do you remember the beautiful and colorful hit counters proudly displayed on every website back in the late 1990s and early 2000s?

Web analytics has come a very long way. After its first inception in 2005, Google Analytics changed the way people look at their online traffic. It led to the creation of staggering new marketing strategies carried out to drive sales thanks to the incredible level of insights provided.

Average visit time, Behavior flow, Demographics, and Geolocation are just some of the fine points you can take advantage of to understand who your online customers are, what they are interested in, what needs to be improved upon and how to better offer what they actually want.

However, counting traffic is simply an action that provides a number, which is of very little value by itself if it’s not looked at in association with other available data.

Being able to witness a decrease or increase in your traffic by looking at your daily visitors is great, but you need more tools to expose these anomalies. What if you could actually deduce that your new window display is the potential culprit and might have attracted fewer customers?

Is it time for the retail industry to borrow from the Online Analytics world?

We didn’t wait for this to be asked nor answered, as we, at Prodco Analytics, have been providing the retail industry with analytics tools that go beyond just people counting.

Let’s apply these strategies to your physical stores

Online Style Analytics for Retailers

Online marketers will always dedicate some time to study the Click-through rate (CTR) of specific advertising campaigns or the ranking of their websites in search engines. If we compare your store to a website on Google’s search network, similarly you can manage to investigate passerby traffic and find out the true impact of your entrance, storefront or new window display.

Establishing zones in your stores.

If your store can be compared to a website, then think of a zone as a Web Page. How much time are your customers spending here, where are they coming from and where are they going next?

Online strategies can be applied the same way to your Brick-and-Mortar store. Here are some examples of what you can do:

  • track traffic in real time to meet your daily goals and targets
  • review visit duration and recency to improve customer loyalty
  • adjust your staff schedules to match traffic levels
  • foresee your busiest times throughout the day and estimate your traffic flow
  • evaluate the impact of your storefront by capturing passerby traffic
  • inspect Heatmaps revealing your busiest areas to better optimize your space
  • compare your store’s performance against your chain or your industry standards
  • understand which areas of your store are performing best

Technology advancements are growing exponentially and as such, our industry will see many changes over the years. Choosing a flexible solution from the get-go will allow your organization to adapt to new technologies and stay relevant.

Prodco Analytics is dedicated to always be at the forefront of innovation to keep offering retailers solutions that provide in-depth shopper insights to ultimately drive performance.

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Prodco’s 2018 Black Friday Weekend review!

Posted on December 4, 2018

Black Friday Insights

USA Map

US Region

Executive Summary:

Black Friday brick-and-mortar traffic flat.

Prodco’s Retail Traffic Index for Black Friday for all regions of the USA reported a slight 0.02% increase compared to 2017. The Midwest reported the largest year-over-year increase of 1.08% while the West reported the largest decrease of 1.01%.

According to a joint National Retail Federation and Prosper Insights & Analytics survey, within the 5 days surrounding Thanksgiving’s weekend, 165 million Americans shopped either online or in stores this year.

– 89.7 million Americans chose to shop both online and in brick-and-mortar stores this year compared to 64 million Americans last year
– 41.4 million chose to shop online only compared to 58 million last year
– 34.7 million chose brick-and-mortar stores only compared to 51 million people last year

With a strong US economy, more Americans took to shopping during the Black Friday weekend compared to last year. Although more consumers decided to shop overall, brick-and-mortar store visits continued to lose ground to the comfort of shopping from a computer or device at home.

If you would like to receive Prodco’s Retail Traffic Index Reports on a weekly basis, please click here.

Canada Map

Canada Region

Executive Summary:

Black Friday continues to gain in popularity in Canada.

Prodco’s Retail Traffic Index for Black Friday in Canada reported an increase of 3.50% for all regions. Quebec reported the largest year-over-year increase of 8.30% while British Columbia reported the largest year-over-year decrease of -0.67%.

As per Diane Brisebois, RCC president and CEO, “While our shopping habits appear to be shifting and becoming more in tune with our neighbours south of the border, Canadians are showing a greater interest in keeping our dollars at home this year”.

The retail Council of Canada (RCC) also reported in a holiday shopping study that 40 percent of Canadians were planning to shop Black Friday Sales compared to just 25 percent on Boxing Day. This indicates that Black Friday in Canada will continue to grow and has largely replaced the traditional Boxing Day.

If you would like to receive Prodco’s Retail Traffic Index Report on a weekly basis, please click here.