Although companies have been talking about sustainability and the circular economy for years, and retailers have been trying to make the production process more sustainable, customers will be the driving force to make sustainability practices stick. The growing consumer demand for preowned products may the accelerator for the circular economy. Strong Revenue Growth Across Recommerce Channels Used-clothing store sales revenue was up 37 percent in 2021 compared to 2020, and 25 percent ahead of 2019. These numbers only account for retail …
Old Anti-Union Tactics Will Not Work with Today’s Workforce
Amazon workers’ recent warehouse unionization win Is one small step for workers and one giant leap for labor unions. Christian Smalls, a former Amazon employee who started the Amazon Labor Union, has become a hero for many workers around the country. While the feat of winning a unionization vote for the JFK8 warehouse in Staten Island that employs 8,300 workers might be a small one in comparison to the 165 million workers across the U.S., it marks a pivotal moment in the history of unionization in the retail industry. The second-largest …
Old Anti-Union Tactics Will Not Work with Today’s WorkforceRead More
How Target Hit $106 Billion in Revenue
Target’s yearly results are nothing short of amazing, hitting $106 billion in revenue as part of the pantheon of the largest retailers in the U.S. market (and the world) including Walmart, Amazon and Kroger. Comp sales were up 12.7 percent for the year with revenue growth of $27 billion since 2019. So, how did they get here? We all remember the best hires we’ve ever made in our careers. For Target it was undoubtedly its current CEO, Brian Cornell (my opinion of course, but the facts back me up). In 2014 when he was hired, Cornell made the …
Power Plays
We’ve heard it, seen it, and are experiencing it as a customer or retail management. The employee is calling the shots. There’s a great power shift that’s giving employees the upper hand. Workers are leveraging their power to choose employers that meet their needs – professionally and personally. Which means it’s a buyer’s market when it comes to employment options. This should put retail management on alert. The old rules don’t apply anymore, and if you’re asleep at the wheel you’re going to miss out on top talent that can make or break your …
America’s Great Service Crisis
Even before the pandemic hit the U.S. market, customer service has been on a decline. Looking back over the past year and half, America's “Great Service Decline” has continued, accelerated by a number of disruptive post-Covid issues. Check out our podcast Platinum Service Turns to Tin with Robin Lewis for an interesting conversation! Pre-Covid Service Shifts Let’s take a look at a brief history of the service decline. Retailers and brands have been steadily reducing effective in-store employee training and some have turned to online …
Don’t Lose Your Customers Over Credit Card Fees
It all started with gasoline stations and small businesses-- you remember, the percent added to sales purchases that is passed on from the retailer to the customer. A $36 mug is assessed a three percent charge if paying by credit card but no fee if you pay cash or use a debit card. Since Covid-19, I have experienced an additional service fee when dining out and Covid-19 surcharges for restaurants and hotels… and this trend is expanding into retail. Pass-along Fees The policy of passing along service fees to the customer may not translate well …
The Direct-to-Consumer Model Is no Retail Panacea
The academician in me needs to clear up some persisting confusion about direct to consumer (DTC) -- even for those working in retail. DTC was originally a label to describe the business model of digital native brands that sold products directly to consumers through ecommerce sites. Warby Parker, Dollar Shave Club, Bonobos, Allbirds, and Glossier immediately come to mind. And of course, we all know Zappos, which in 1999 became one of the first DTC brands still supported by fierce loyalists. Its DTC value is self-evident: Amazon purchased Zappos …
The Point of No Return
The cost of returns is estimated at $550 billion for 2020 and the number of online returns has more than doubled. In 2020, the pandemic accelerated online purchasing with non-physical store sales ending the year up an impressive 23 percent. However, higher ecommerce sales mean higher online returns. Returns fraud is another serious issue: cybercriminal activity and returns fraud are already costing states $1.5 billion in lost taxes and over 741,000 jobs per year, according to a report by Appriss Retail and the NRF. The growing shift to digital …