The Wow Retail Monitor 2014 - leger360.comleger360.com/admin/upload/publi_pdf/WBEN20141211_WOW.pdf · The Wow Retail Monitor 2014 ... their own environment, they shop online

The Wow Retail Monitor 2014 Customer Experience Index for Ontario

2008 2013 Variation

Total sales Canada $443 Billion $475 Billion + 7%

Number of stores 203,000 195,000 -3,5%

Total surface 1,13 Billion sq ft 1,07 Billion sq ft -3%

Population 33,049,761 34,940,975 +6%

Average sales per capita $13,412 $13,594 1%

Sq ft by capita 34,2 pi2 31,4pi2 -8%

RETAIL WILL SHRINK

RETAIL WILL SHRINK

55% try to reduce their total household spending

-3% decline in retail spending over last year (-8% since 2008)

Source: Nielsen Homescan, Total Expenditures - 52 Weeks Ending December 28, 2013– Q4 Global Omnibus Survey - Canada

168.3

221.3

Trips / Household

$24.30

$25.60

Spend / Trip

2007 2014

$42.53

$51.08

Spend / Trip

Source: Homescan Retailer Watch, National All Channels, Total Expenditures 52 weeks to March 29, 2014

Total visits by household Basket size

One Does Not Make Up for the Other

SELF-SERVICE

“Retailers need to be able to accommodate how shoppers want to use the technology.”

NCR Retail Self-service Solutions Group

RETAIL BLURRING

“Young people know what they want; they are used to controlling their own environment, they shop online. I think they should be able to do that in the store as well”

Sneakerboy

HIGH SPEED RETAIL

ACCESS TO OTHER CONSUMERS

90% of customers are likely to come back if you take the

time to address their concerns.

METHODOLOGY

Index of 90 points or more WOW !!!

Index between 80 and 89.9 points Delighted

Index between 70 and 79.9 points Satisfied

Index between 60 and 69.9 points Content

Index between 50 and 59.9 points Dissatisfied

Index less than 50 points Detractors CAUTION !!!

• 113 Ontario Retailers – Online Survey

• More than 7,500 Ontarians (October 16th – November 7th)

• Assessed by 400 recent customers 15 years of age or older

• The Wow Retail Monitor: Based on weighted avg. of 16 dimensions

The Customer Experience Model includes 16 dimensions.

CUSTOMER

EXPERIENCE

Retail Offer

Service

Store

Time

Customization

Recommendation

1. Product quality 2. Product variety 3. Competitive prices 4. Promotional activities 5. Drive and Innovation

6. Staff courtesy 7. Staff competency 8. Staff attentiveness

9. Store ambiance 10. Store layout 11. Signage 12. Information displayed in store

13. Efficiency at checkout

14. Sense of belonging (made for me) 15. Priority given to customers from start to finish of the purchasing process (care and support, special attention) 16. Building customer loyalty

10

CUSTOMER EXPERIENCE MODEL

THE DOMINANT FACTORS

This store is made for someone like me

Promo… promo … promo ...

Silent selling and layout

Availabilty of staff of knowledgreable staff

Building customer loyalty

1.

2.

3.

4.

5.

1st

BEST RETAILERS IN ONTARIO

RANKED IN THE TOP 15 - WOW 2014

BEST RETAILERS IN ONTARIO RANKED IN THE TOP 15 - WOW 2014

1

2

3

4

5

6

Score: 85.6

2013 Rank: N/A

7

Score: 85.4

2013 Rank: 7

8

Score: 82.9

2013 Rank: 17

9

Score: 82.4

2013 Rank: 10

10

Score: 81.3

2013 Rank: N/A

11

Score: 81.2

2013 Rank: 8

12

Score: 81.2

2013 Rank: N/A

13

Score: 80.5

2013 Rank: 5

14

Score: 79.9

2013 Rank: N/A

15

Score: 78.7

2013 Rank: 13

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=0I49JJG55vmb6M&tbnid=-n2UtGaUzvjHpM:&ved=0CAUQjRw&url=http://cm.mountainlifemag.ca/2011/06/mountain-equipment-co-op-gives-away-free-money/&ei=-7jqUuHWOYXOyAHTw4C4Cw&psig=AFQjCNEBVZ0gmp2tRbwBfo8SkSn5gLcDvw&ust=1391200884945031


5

Score: 85.9

2013 Rank: 6

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=_ME3BEHNbZXmnM&tbnid=g3LR81l7603htM:&ved=0CAUQjRw&url=http://www.seawaymall.com/l9-l10.html&ei=KyLsUurrD-yAygH474HICQ&bvm=bv.60444564,d.eW0&psig=AFQjCNG5hjefdRqhFrTKJNG8Lzhz5kKFiQ&ust=1391293352526136


4

Score: 89.3

2013 Rank: 4




3

Score: 90.8

2013 Rank: 3




2

Score: 91.3

2013 Rank: 1




1

Score: 96.2

2013 Rank: 2




1st

RETAILER RANKING BY SECTOR


Beauty RANK RETAILERS 2014 2013

1 Yves Rocher 91.3 99.0

2 Bath & Body Works 90.8 87.7

3 The Body Shop 85.4 83.4

4 Lush 81.2 83.3

5 Sephora 80.5 84.9

6 Fruits & Passion 77.3 72.0

7 MAC Cosmetics 69.1 75.1


Bookstores

RANK RETAILERS 2014 2013

1 Coles 82.9 76.4

2 Chapters Indigo 74.9 81.7


Intimate Apparel


1 La Senza 78.7 77.3

2 Victoria's Secret 76.0 76.1

3 La Vie en rose 68.7 68.1

4 Aqua La vie en rose 59.3 58.1

5 Bikini Village 54.6 51.9

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=wby7sAxI1SyiaM&tbnid=H_pHojWvk93_KM:&ved=0CAUQjRw&url=http://internationalvisual.wordpress.com/2013/02/18/lingerie-store-ideas/&ei=vxTsUp_cHIezyAHUzICgDw&bvm=bv.60444564,d.eW0&psig=AFQjCNGmIZlYpjKVSO08u7Xw-C6SElxx8A&ust=1391289737336126


Children’s Apparel


1 Bonnie Togs 75.8 77.2

2 Children's Place 68.3 69.7

http://www.google.ca/url?sa=i&rct=j&q=&esrc=s&frm=1&source=images&cd=&cad=rja&docid=sId_GDX2lVpuMM&tbnid=bv_SLzrPVCbTOM:&ved=0CAUQjRw&url=http://www.cocoandcharlie.com/&ei=VBLsUtTSFMS8yAH4s4C4BA&bvm=bv.60444564,d.eW0&psig=AFQjCNFQ49x-AOnx5nw1OEoqQzjfu7PaVA&ust=1391289276360010


Specialty Stores RANK RETAILERS 2014 2013

1 DAVID's TEA 89.3 86.5

2 Teavana 81.3 NEW

3 Tiffany & CO 77.9 NEW

4 LCBO 74.9 72.5

5 Pandora 73.9 NEW

6 Pet Valu 71.1 NEW

7 Bulk Barn 69.3 NEW

8 The Beer Store 68.9 66.7

9 Laura Secord 63.3 66.4

9 Rocky Mountain Chocolate Factory

63.3 NEW

11 Bentley 54.5 NEW


Pharmacies RANK RETAILERS 2014 2013

1 Pharmasave 79.9 NEW

2 Shoppers Drug Mart 73.6 72.3

3 Rexall Pharma plus 68.5 65.6


Electronics


1 Apple Store 77.7 77.2

2 Staples 70.7 67.9

3 Best Buy 61.8 72.4

4 Future Shop 60.3 67.4

5 The Source 47.4 56.7


Sporting Goods


1 Mountain Equipment Co-op

82.4 79.3

2 Golf Town 73.5 77.1

3 The Running Room 69.2 74

4 Foot Locker 64.2 61.5

5 Sport Chek 60.1 61.2

6 Source for Sports 57.9 NEW

7 National Sports 55.5 53.4


Craft Stores


1 DeSerres 73.3 70.9

2 Michaels 63.1 64.5


Hardware Stores


1 Home Hardware 71.0 72.3

2 Home Depot 56.8 71.6

2 Lowe's 56.8 73.0

4 Rona 51.7 53.8


Games and Entertainment


1 EB Games 75.1 77.5

2 HMV 66.4 66.2

3 Toys "R" Us 52.3 53.5


Apparel

RANK RETAILERS 2014 2013 6 Laura / Petites / Plus 70.8 72.0 7 Tommy Hilfiger 69.6 68.8

8 Guess 64.0 63.0

9 Mark's Work Wearhouse

62.6 70.1

10 Anthropologie 62.0 NEW 11 Garage 60.8 58.7

12 GAP 60.2 60.9 13 Old Navy 59.3 66.4 14 RW & Co 58.7 60.4

15 Smart Set 57.1 64.8

16 Dynamite 56.5 62.3 17 MEXX 55.8 49.1 18 Aritzia 51.7 NEW

19 Top Shop 51.4 NEW 20 Zara 51.0 51.2

21 XXI Forever 50.5 61.3 22 H&M 49.5 53.4 23 Joe Fresh 49.1 49.9


1 Penningtons 96.2 93.1

2 Addition-Elle 85.9 84.1

3 Lululemon Athletica 74.0 70.1

4 Reitmans 71.6 78.1

5 Suzy Shier 71.3 68.3


Supermarkets


1 Longo's 76.1 72.1

2 Whole foods 72.4 73.0

3 Sobeys 69.6 65.0

4 Zehrs 67.3 66.5

5 Real Canadian Superstore 65.0 65.8

6 Loblaws 62.4 61.5

7 No frills 60.9 64.8

8 Price Chopper 58.9 58.5

9 Metro 57.5 57.4

9 FreshCo 57.5 NEW

11 Food Basics 53.5 55.3


Footwear and bags RANK RETAILERS 2014 2013

1 Michael Kors 85.6 NEW

2 Payless ShoeSource 68.1 67.1

3 Naturalizer Shoes 67.7 66.3

4 Spring 62.5 66.9

5 ECCO 60.1 NEW

6 Aldo Shoes 58.2 58.6

7 Towne Shoes 54.6 54.1

8 Browns Shoes 53.9 54.8

9 Nine West Shoes 53.7 66.4

10 Globo 53.6 55.8


Home Décor RANK RETAILERS 2014 2013

1 Sleep Country 81.2 NEW

2 Kitchen Stuff Plus 75.9 70.5

3 Williams-Sonoma 71.0 74.8

4 Stokes 66.9 55.4

5 IKEA 59.2 60.5

6 Crate & Barrel 58.9 64.7

7 Pier 1 Imports 57.0 59.9

8 Sears Home Decor 56.2 55.8

9 The Brick 55.6 53,0,

10 Home Sense 50.7 58.5

11 Home Outfitters 48.9 50.3

12 Bed, Bath & Beyond 45.4 60.1


Department Stores / Big Box Retailers


1 Holt Renfrew 65.7 71.1

2 Costco 65.5 66.9

3 Walmart 59.6 57.6

4 Canadian Tire 57.1 66.8

5 Target 55.7 50.6

6 Winners 55.2 56.4

7 Sears 49.9 54.3

8 The Bay 48.0 57.9


Telecommunications (stores & kiosks)


1 Telus 66.1 62.7

23 Bell Mobility 49.8 46.8

3 Rogers Wireless 49.6 48.1


Convenience Stores


1 7-eleven 51.5 45

2 Mac's 46.5 43.3

THE NEXT BIG STEP !

1. Even brick and mortar stores need to integrate a virtual reality to their offer.

2. They need to be everywhere on a 24/7 basis I. On the Web and social media

II. Through mCommerce

III. Tablets

IV. Wearable and body devices

3. Their store environments need to create an experience with the product/service.

Retailing is Progressively Being Redefined by a New Service Paradigm.

THE NEXT BIG STEP !

THE NEXT BIG STEP !

THE NEXT BIG STEP !

THE NEXT BIG STEP !

THE NEXT BIG STEP !

THE NEXT BIG STEP !

THE NEXT BIG STEP !

THE MATRIX

WOW 204 Index

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1

2

3

4

The Avant-Garde 14 retailers

The Innovators 25 retailers

The Conventionals

11 retailers

The Laggards 70 retailers

THE NEXT BIG STEP ! THE MATRIX

THE MAJORITY

THE LAGGARDS In a world where consumers can get

everything on the Web, why do they keep their stores?

DOING WELL !

THE CONVENTIONALS

Provide excellent Customer Service, but do not seem to understand that eCommerce does that as well. Providing in-store experiences is not their forte.

FORWARD THINKERS

THE INNOVATORS Good at providing interesting in-store experiences, but have not yet ensured customer experience basics. Price, variety and courtesy are still key ingredients.

THE EXAMPLES

THE AVANT-GARDE They are very good at providing the fundamentals of Customer Service. They offer good products, good prices and are helpful, but they offer something more. They provide compelling in and off store experiences

REAL WORLD & VIRTUAL

Avant-Garde Innovators Conventionals Late-Bloomers

I use their Web site 51% 46% 38% 36%

I use their site to find a location

30% 25% 20% 16%

Use their site before I go

39% 35% 27% 27%

Buy on their site after a visit

17% 13% 11% 9%

Use my Cell in store 19% 16% 11% 10%

Post positive comments on social media

15% 12% 9% 7%

Click and pick 15% 12% 9% 8%

THE NEXT FIVE YEARS

This new frugality is likely to be a lasting trend. Shoppers want to be smart and will

consider the real cost of buying cheap.

Reduced margins in retail mean retailers will have limited resources to meet increased

expectations from smart shoppers.

Retail square footage will continue to shrink. We are in for a shakeout. If you are into

delivering average experience, with an average product, at an average price to the

average customer… Lookout !!!

Omni-channel is not some intellectual construct. Customers may be one step ahead of

retailers here.

In-store experience will be more and more important. You have to be the best 21st century

retailer with a 10th century attitude to customer service.

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3.

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The Wow Retail Monitor 2014 Customer Experience Index for Ontario

Documents

The Wow Retail Monitor 2014 - leger360.comleger360.com/admin/upload/publi_pdf/WBEN20141211_WOW.pdf · The Wow Retail Monitor 2014 ... their own environment, they shop online