Internet Retailer - Strategies For Multi-Channel Retailing


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News Stories Wednesday, December 7, 2005   
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Pick-up in store picks up the ticket by 58%, new AMR report says


Retailers have reported anecdotally that online shoppers who pick up merchandise in the store spend more once they get there. Now AMR Research quantifies how much more: Their average increase in spend is 58%. “The trick is for retailers to enhance that by putting high-margin items by the pick up area,” says AMR analyst Rob Garf. “For the Gap, that might be socks or boxers. For Best Buy or Circuit City, it might be iPod accessories or batteries.”

The increase is part of an overall trend by which customers who shop in more than one channel spend more than single-channel shoppers. AMR’s survey reports that cross-channel shoppers spend 30% more than single-channel shoppers.

AMR also reported that sales shifted almost 10% from stores to online this holiday season. Garf attributes the shift to consumers shopping offline, then buying online either because the store didn’t have exactly that they wanted, they didn’t want to wait in lines or they had identified what they wanted and then went online to comparison shop. “It’s almost the opposite of the pick-up-in-store story,” he says.

In another study just out, mobile content provider Motricity and researchers Greenfield Online report that 4% of U.S. consumers will use their cell phones to shop online this year. The study, which also found that 83% of consumers will shop online through either cell phones or other devices, was based on a general poll of 300 consumers, including some who don’t shop online, Motricity says.

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