UK Record Shops Enjoy Record High

“The number of ‘bricks and mortar’ entertainment stores has reached a record high – despite rising online sales of music and film,” the BBC reports. There are now some 14,800 shops selling CDs, DVDs and Blu-ray, with supermarkets and high-street chain sales leading to the rise … The number of stores selling music and video has more than doubled since 2009, with DVD and Blu-ray available in 14,852 stores in 2015 and CDs and vinyl in 14,727.

Kim Bayley, CEO of the Entertainment Retailers Association: “Conventional wisdom has always suggested that the internet spelled the end for physical entertainment stores, but these numbers show that traditional retail still has a place, particularly for impulse purchases and gifts. After all, you can’t gift-wrap a download or a stream.”

Bayley adds that “the trend is clear – just as the internet has demonstrated that accessibility and convenience are key to selling entertainment, physical stores are demonstrating that if you put entertainment in front of people, they will buy it.”

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Routehappy Scores Flights on the Experience

Routehappy has found a business in scoring air-travel options when you shop for tickets,” The Wall Street Journal reports. Routehappy’s website ranks flights by specific scores that compare not just prices but onboard amenities. It even compares different flights on the same route offered by the same airline.”

“Routehappy has eight attributes that it tracks for each flight offered for sale by 225 airlines: aircraft, seat, cabin layout, entertainment, Wi-Fi, fresh food, power outlets and duration. The criteria weigh basics like legroom and often overlooked but important factors like seat width … seat and duration are the biggest factors in a score.”

“More factors are coming—likely on-time performance will be the next to be included … though finding accurate information about flights is a challenge because airlines routinely change flight numbers. Routehappy also hopes to someday let users pick what’s most important to them and customize scores.”

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Quote of the Day: Craig Spiezle

“Ad blocking is a symptom of a pervasive problem. If consumers enjoyed the web experience and felt there were adequate controls for privacy and the ad industry was making a sincere effort to fight abuse and malfeasance, we wouldn’t be having this conversation.” ~ Craig Spiezle, Online Trust Alliance, via The New York Times.

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Quote of the Day: Benjamin Friedman

“On the whole, the problem with new books is that there’s a list price set by the publisher and a discount price that’s also set by the publisher. So, as a new bookseller, you have no control over what the book sells for or what you pay for it. With used books, if you’re smart, you find ways to get them cheap, and you decide what you price them at.”

“As a general rule, on any book, a used bookseller is probably making twice as much profit as a new bookseller. And that’s the difference between making it and not making it, because the profit margins on new books are razor-thin. At a used bookstore, no one is getting rich, but you can make enough to stay alive.” – Benjamin Friedman, co-founder, Topos Bookstore Café, as quoted by The Awl.

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Working on the (Supply) Chain Gang

“For many companies, competing both online and at the mall can mean trading fat profit margins for more customers—at least for now,” reports The Wall Street Journal. “Fashion retailer DSW Inc. has given shoppers the option of placing online orders for out-of-stock items without leaving its stores. And, the chain is both fulfilling online orders and accepting returns at its growing number of locations.”

“The company is betting those efforts will pay off by increasing customer loyalty even though they aren’t adding to profits in the near term, said Roger Rawlins, who oversaw DSW’s omnichannel strategy before recently becoming CEO. He said customers who buy DSW products through multiple channels spend two or three times as much as those who shop exclusively in its stores or online only.”

“The strategy ‘ultimately allows you to grab additional market share, and then as we learn through using all these capabilities, we hopefully should be tweaking to be able to generate incremental profitability,’ Mr. Rawlins said.”

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Shipping Is Never Fast (or Cheap) Enough

The Wall Street Journal: “More than nine of 10 shoppers said they considered ‘same day,’ ‘next day’ and ‘two day’ delivery to be ‘fast,’ according to consulting firm Deloitte’s 2015 holiday survey of some 4,000 shoppers. At three to four days, only 63% called it ‘fast,’ and just 18% of shoppers considered five to seven days ‘fast’.”

“And customers for the most part are no longer willing to pay extra for expedited delivery. Shoppers on average said they would pay at most just $5.10 for same-day service, in the Deloitte survey. A quarter of shoppers said they wouldn’t expect to pay anything at all.”

However, absorbing the shipping may be worth it to some online retailers because it can reduce the return rate: “When you go to a store, you have that wonderful delight of carrying the bag down the street,” says David Maddocks, chief marketing officer of Cole Haan. “Online, after you click, you have to wait. And during that time you can fall out of love.”

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