Commentary

Push Consumers To Shop InStore

As Amazon continues to heap pressure on retailers by shifting customer expectations concerning fulfillment and pricing, department stores may be suffering more than anyone, says a new study from L2News by Adriel Tey .

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Many retailers have responded by leveraging off-price subsidiaries to acquire new, value-oriented customers attracted by the prospect of finding bargains on luxury items formerly stocked at full-price stores, says the report. This represents a reversion to a tactic department stores know best: getting customers into stores.

Department Stores Tactics to Push Customers to Shop In-Store

Tactic

Department Store

Off-Price Subsidiaries

Promotes In-store discounts or services

58%

71%

Offers discount for going into store

8%

29%

Promotes store offering

17%

29

Source: L2 News, September 2017

Tactically, off-price subsidiaries of department stores don’t need to offer direct-to-consumer (DTC) e-commerce to succeed, says the report, as evidenced by the continued success of off-price retailers. However, these retailers must leverage digital assets to drive potential customers to stores. For example, Bloomingdale’s Outlet and Macy’s Backstage use their homepages to advertise store-specific discounts.

In addition, 29% of off-price offshoots in L2’s study ask site visitors to select a favorite store location, allowing them to send newly acquired and loyal customers targeted alerts about location-specific promotions, says the report. By prompting site visitors to sign up for email and text alerts, off-price offshoots can stay top of mind when acquiring new customers. The report notes that only a third of brands in L2’s analysis employ this touch point, suggesting there is substantial room for growth.

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