Retailers Lost Sales This Holiday Season Due to Service, Store Layout, and Inventory Issues, Says Deloitte Survey

NEW YORK, Jan. 16  /PRNewswire/ -- Many consumers walked out of a store without buying what they wanted this holiday season, according to a new survey from Deloitte & Touche USA LLP.
In the survey, many consumers said they were unable to buy, or chose not to buy, a product because of poor customer service, a confusing store layout, or the item they wanted was out of stock. Specifically:
  * 64 percent said the item or size they were looking for was out of stock  * 57 percent said the line at the register was too long  * 52 percent said a sales associate was not readily available to help them  * 32 percent said a sales associate could not answer the question they    asked
"Retailers have a considerable opportunity to improve sales and earnings by converting shoppers into buyers," said Pat Conroy, a vice chairman of Deloitte & Touche USA LLP and national managing principal of its Consumer Business industry practice.  "Better managing inventory, ensuring that store staffing matches shopper traffic, and improving selling behaviors are just some of the ways that retailers can enhance customer conversion.  These levers are all within retailers' control and, importantly, they help create long-term loyalty among shoppers, which is essential for a retailer's survival in today's competitive environment."
Streamlined, intuitive store navigation also improves conversion.  In the survey, more than a quarter (26 percent) of respondents said they walked out of a store without buying because the store layout was too confusing. "Shoppers can't buy it if they can't find it," added Conroy.  "Improved store navigation and merchandise organization can increase both customer conversion and the total dollars spent."
Traditional Marketing May Not Drive Store Visits
The survey showed that two-thirds (66 percent) of store visits this holiday season were not influenced by marketing and advertising. Most consumers said that they shopped in specific stores because they were familiar with the store or they were passing by, not because of advertisements, sale notices, email reminders, or other advertising or marketing.
"This data corroborates our earlier studies, and shows that traditional marketing may not be the best way to turn shoppers into buyers," said Conroy. "Consumers visit stores because of brand recognition and past in-store experiences. Retailers that consistently deliver successful customer experiences and fulfill their brand promises are creating strong retail brands and loyal customer bases."
Consumers Are Increasingly Combining In-Store and Online Shopping
Consumers' growing use of the Internet to shop and pre-shop is creating opportunities for retailers.  Nearly two-thirds (63 percent) of respondents purchased online this holiday season, and virtually all (95 percent) said that their online experiences were positive.
In addition, approximately two-thirds (63 percent) of consumers surveyed did an online search for product or store information before visiting a store. Almost half of consumers (48 percent) read online consumer-written product reviews, at either a retailer site or a non-affiliated site (e.g., magazine website, social website) to help decide whether or not to buy a product, or which product to buy; virtually all (90 percent) of these said that the reviews were helpful in making a purchase decision.
"Consumers are becoming more surgical in their approach, and using the Internet for a variety of shopping and pre-shopping activities," added Conroy. "Retailers that can provide rich multi-channel resources are more likely to attract customers and win their loyalty. In addition, multi-channel retailers may prove to have a distinct competitive advantage over online-only retailers, since the multi-channel brand will have the opportunity to develop more frequent customer contacts."
Methodology
The surveys were commissioned by Deloitte & Touche USA LLP and conducted as an online questionnaire by an independent research firm on January 9 and 10, 2007.  The survey of shoppers polled a nationally representative sample of 1,100 consumers between the ages of 18 and 74.  The margin of error for the sample is +/- three percentage points.
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