9/25/03

How store pick-up boosts sales at REI

Pick-up in the store has resulted in significant additional sales at outdoor gear retailer REI, Joan Broughton, vice president of multi-channel programs, told the Multi-Channel Marketing session at the Shop.org Annual Summit Thursday.

Kurt Peters , Executive Editor

Many retailers who contemplate offering order-online-pick-up-at-store are aiming to provide customer convenience with the service. But another benefit is incremental sales.

Pick-up in the store has resulted in significant additional sales at outdoor gear retailer REI, Joan Broughton, vice president of multi-channel programs, told the Multi-Channel Marketing session at the Shop.org Annual Summit Thursday. A third of all customers who pick up at the store make another purchase while there and they spend an average of $90. “It’s created incredible add-on sales at the stores,” she said.

One of the interesting aspects of the phenomenon is that customers who pick up at the store are often value conscious and choose the store pick-up option as a way to save money, she said.

REI operates 67 stores and Broughton noted that over the past 20 years retail has accounted for 85% of sales, direct for 15%. Since REI went on the web in 1996, web sales as a proportion of direct sales has grown to 75%. The web now accounts for 12% of all REI sales, she said.

She added that stores where customers pick up their purchases get credit for the sale.

Topics:

business, business finance, Commerce, Online shopping, REI

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