The retail industry is undergoing a significant transformation due to shifts in consumer behavior and the rise of online shopping. Traditional methods of measuring retail performance, such as store traffic and parking lot counts, are no longer enough to gauge the success of a retailer in today’s digital age.
Experts like Marshal Cohen from NPD Group have had to rethink their research methodologies to keep up with changing consumer preferences. The insights provided by retail analysts play a crucial role in shaping marketing strategies, influencing share prices, and guiding investment decisions in the retail sector.
As more consumers in the U.S. turn to online shopping, analysts are exploring new ways to evaluate a company’s overall performance. Beyond traditional metrics like sales per square foot, analysts are now considering factors like the influence of Instagram-native fashion brands and the shopping habits of younger generations.
Brian Field of ShopperTrak highlights the challenges of attributing foot traffic to actual in-store purchases versus online orders. The convergence of online and in-store sales makes it increasingly complex to determine a retailer’s true performance metrics.
Marie Driscoll from Coresight Research and Craig Johnson from Consumer Growth Partners stress the importance of keeping up with the evolving retail landscape. From tracking the impact of social media on retailers like Nordstrom Inc to analyzing holiday season promotions, analysts must continually adapt their approaches.
While retail sales in the U.S. are projected to grow during the holiday season, limited information from retail companies forces analysts to draw conclusions based on incomplete data. Charlie O’Shea of Moody’s emphasizes the importance of transparency and comprehensive reporting for accurate performance assessment.
In conclusion, retail analysts must evolve their methods to effectively measure retail performance in the online world. By staying informed, embracing new technologies, and understanding consumer trends, analysts can provide valuable insights that drive success in the retail industry.
For more information on retail performance measurement, check out these helpful links:
Forbes – How to Measure the Success of Your Retail Business
Business of Fashion – How Consumer Trends are Changing E-commerce
