It may not be a blue Christmas after all. After some preliminary doom and gloom reported from some retailers last month, a pall was cast upon Commerce reported Thursday that November retail sales reached $449.3 billion — up 0.7 percent compared with October and an increase of 5.1 percent compared with November 2013. In addition, total retail sales from September through November are up 4.7 percent annually. That’s much better than expected, on the heels of Black Friday and Thanksgiving shopping reports that were flat. The National Retail Foundation reported similar findings to the Commerce department’s. It said that retail sales rose .6 percent in November from the prior month. That’s in line with the organization’s forecast for the holiday shopping season overall, of a 4.1 percent increase in revenue from 2013. Experts noted that shoppers have taken advantage of some early discounts offered, and are pacing themselves in the weeks leading up to Christmas and Hanukah. “It is important to remember that for most retailers, the holiday season is a marathon, not a sprint, and there are plenty of important holiday shopping days ahead of us, including the week leading up to Super Saturday – the day many expect will be the biggest shopping day of the season,” NRF President and CEO Matthew Shay said in a statement. So shoppers are stretching out their spending — and they probably have a bit more to spend this year as well. Gas prices are down significantly, from an average of $3.27 on Dec. 2, 2013, to $2.67 today. Job creation is up also, with employment up 321,000, an average monthly gain of 224,000 during the prior 12 months. Those are positive signs that while spending may be steady, the NRF’s prediction of greater sales may be on target. Now is the ideal time for retailers to take advantage of increased sales and take stock of their technological prowess. Those who can implement technology such as RFID tags, mobile check out and data analysis will realize cost savings in their daily procedures:

• RFID helps store associates and managers improve tracking and stocking inventory in stores, and make better decisions when ordering merchandise and selecting products. Additionally, overall loss prevention is improved because the exact product locations are known and logged throughout the brick-and-mortar store.
• Mobile checkout lets retailers manage long lines and also provides the opportunity for associates to interact more with customers. By getting salespeople out from behind the cash wrap, they are able to get to know their customers better and provide consultative sales, thereby increasing revenue.
• As mobile, tablets and social media becomes increasingly popular, more customer data is being collected. Today’s retailer knows not only the basic demographic information about a customer, but purchase history, call center interaction, mobile/social interaction, supply chain data as well. The amount of information available to retailers is unprecedented, even for brands that have years of experience analyzing customer data. By analyzing this information, retailers can make appropriate sourcing and marketing decisions.

The time is ripe for retailers to review their IT and make appropriate upgrades. Consider it a gift that will keep on giving.

Amazon is an enormous competitive threat to brick and mortar retailers. And yet, we all know local shops that thrive, that are the go-to store for that something special. Those “Main Street” stores are able to hold their own in the face of daunting competition. Recently, Walker Sands’ released a study offering tried and true ways that retailers can distinguish themselves from huge commerce entities. First, an omnichannel experience is a must. As they say in New York, you can “forgetaboutit” if you don’t offer inventory checking online or click and collect. Customers are demanding spillover between the online and brick and mortar worlds. Walker Sands’ found that consumers shop on different devices simultaneously. It’s not unusual to spy someone on Amazon while looking at a Vizio television at Costco, for example. The firm said 64 percent of consumers have used their mobile device to research products while in a brick-and-mortar location. So it’s critical for retailers to provide a seamless experience as they move from a mobile device to in-store to their laptops. Second, encourage the mobile device inside the store. Gamification can be a fun way to engage customers and get them to explore less-trafficked parts of the store — which are still relevant to their shopping habits. Other shoppers may be enticed by navigational assistance; 52 percent of those surveyed told Walker Sands’ they would be more likely to shop at a retailer offering in-store navigation on a mobile device. Fifty-nine percent would be more likely to shop at a store offering self-checkout via a mobile device. However, issues with shrinkage and theft already exist in self checkout that is handled by front line registers, so permitting it via handheld devices would require significant security assurances for retailers. Third, and finally, personalization is a particularly popular reason shoppers enjoy the Amazon experience: 44 percent of respondents said they “strongly agree” or “agree” that they want product recommendations based on past purchases. It’s somewhat ironic that an online-only retailer is thought of as offering more personalized service than the local retailer. Personal service is the birthright of the neighborhood shop. However, somewhere along the way, that birthright was squandered. The shopkeeper felt squeezed by economic pressures. Rents go up, but customers, feeling the pinch too, cut back on spending. Product selection changed, and, often, quality decreased. Frequent shoppers become occasional browsers. Shopkeepers wound up with fewer regulars and couldn’t know the preferences — much less the names — of the shoppers who only visited on occasion. Technology can change the lot of the local store owner. Embrace the omnichannel; almost any store can offer a buy online pickup in store option (click and collect). Mobile devices are a fact of life; the store that fears them does themselves more harm than good. And while it’s true that customers are more transient than ever, a strong loyalty program based on data analytics that offers relevant customer incentives will go a long way in moving local retailers’ future from shaky ground to solid footing in the new year.