Continuous Innovation: The Key To Retail Success
Shoppers never stop shopping, and retailers must evolve to stay ahead of the pack and keep consumers engaged.Today, brick-and-mortar stores need to innovate continually to capture their shoppers’ attention as e-commerce attracts a growing number of users. In addition, while consumer confidence was on the rise in over half of the countries Nielsen surveyed in the third quarter of 2013, including the U.S., shoppers remain focused on value for their money. As a result, retailers need to stand out to compete for consumers’ limited baskets.
Innovation captures consumer interest and attention, attracting both new customers and faithful loyalists. It can provide retailers with an edge in five major shopper-need categories: convenience, choice or assortment, shopability, price-value, and brand equity.
However, there is no secret formula for successful ideas and certainly nothing that can be protected by patent. At the same time, breakthroughs are often copied quickly and easily. Consequently, retailers must innovate continually to grow and stay ahead.
U.S. Basket Size and Trip Frequency
Today’s consumers have more retail choices than ever, but they’re cutting back on their overall purchases. In the U.S., trip frequency has fallen 15 percent over the last six years, while basket size has climbed only 9 percent. And we’ve seen similar trends around the world. For stores to beat the competition, they need to encourage consumers to increase the number of trips, grow the size of their baskets, or both. Innovation can help them win sales.