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New survey shows shoppers will spend more for good customer service

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According to the 2014 American Express Global Customer Service Barometer, bad customer service led 57 per cent of Canadian shoppers to leave a store without making their purchase this year. That figure was 60 per cent in the U.S. Respondents in India were most likely to leave a store without making a purchase, with its number reaching 71 per cent.

The survey was conducted on 10,000 people online in Canada, the U.S., Mexico, Italy, the U.K., India, Japan, Singapore and Hong Kong. Survey respondents across all countries agreed that offering products at a good price was the best way to exceed customer service expectations.

The American Express survey was conducted in August 2014.

91 per cent of app users plan to do holiday shopping on apps

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Walmart shakes up its e-commerce team

According to a new survey of 500 consumers by Artisan Mobile, 94 per cent of those surveyed browse and make purchases using mobile applications, while 91 per cent of respondents plan to make their holiday purchases using a mobile or tablet app this year.

The survey also concluded that 54 per cent of those surveyed will do half or more of their holiday shopping using an app, while 51 per cent use other methods to make purchases, such as going in-store or using a computer, after browsing on an app.

The number of app users is growing. According to a survey last year, only 66 per cent of app shoppers browsed or made purchases using an app during the 2012 holidays, while 84 per cent did so in 2013.

“Consumers are shopping on apps more than ever before, and we’ll see apps play an even bigger role this holiday season than last year,” said CEO Bob Moul in a press release from the company. “Not only are consumers making purchases via apps, but they’re also browsing on these apps and making purchases with that app’s brand either on their desktops or in-store. Apps are becoming such a critical part of the shopping experience, and that’s why retailers and marketers need to understand how to deliver a personalized experience that will engage their app users – who also tend to be a brand’s most loyal customers.”

Loblaw exceeded expectations with its quarterly earnings

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Loblaws looks to loyalty program to gain customers

Loblaw Companies Ltd. reported a better quarterly profit than expected, in part due to Shoppers Drug Mart adding to its numbers.

Loblaw experienced a revenue growth of 36 per cent to $13.6 billion, of which Shoppers contributed about nine per cent. Same-store earnings rose by 2.5 per cent at Shoppers over last year, while Loblaw’s number grew by 1.6 per cent in the same category.

While Loblaw saved $44 million in the quarter due to its acquisition of Shoppers Drug Mart, it faced costs amounting to $46 million for restructuring and reorganization. The company’s net earnings dropped to $142 million from $150 million.

Target modifies its sales strategy for the Canadian market

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Target uses app to test same-day curbside pickup for 10 San Francisco stores

Target Canada is making an effort to appeal to its shoppers by modifying its sales strategy before the important holiday shopping season by looking at consumer research and learning from errors made last year.

Its new strategy includes removing items that did not do well in the Canadian market and instead stocking higher quantities of items that Canadians look for. It has also said that it is waiving shipping costs for any online purchase made between Oct. 22 and Dec. 22.

In addition, Target will be stocking exclusive brands that it hopes will appeal to Canadians, such as Bose and FitBit electronics, ELF cosmetics, Vitamix blenders, Fruits and Passion personal care items and Toms shoes, which has been a big draw for its American consumers.

Target plans to release its third-quarter earnings results on Nov. 19.

Bio Lonreco is now the exclusive Canadian distributor of PRANAROM

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Bio Lonreco is now the exclusive Canadian distributor of PRANAROM

HERBALGEM, a European leader in concentrated organic Gemmotherapy products and other natural wellness products, and PRANAROM, a creator of 100 per cent pure and natural chemotyped essential oils, joined forces in January 2014 to become INULA Natural Health, a group of companies that use natural and holistic therapies made of vegetal extracts.

Since HERBALGEM has been in a partnership with Bio Lonreco Inc. for several years. PRANAROM has recently entered into an agreement effective January 2015, allowing Bio Lonreco to become the exclusive Canadian distributor of PRANARAM’s Phyto-Aromatic Specialties.

“HERBALGEM and PRANAROM faithfully trust and wish all the best to Bio Lonreco Inc., and its scientific and commercial advisors, to inform Canadian health practitioners and retailers about the numerous virtues of their respective products, but also to emphasize their perfect complementarities for an optimized well-being of Canadian patients and consumers,” said the company in a press release.

New survey indicates promotions heavily drive sales

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New survey indicates promotions heavily drive sales

A November 2014 survey by RetailMeNot, Inc. in conjunction with Google Consumer Surveys shows how much promotions impact retail sales.

Promotions have been the reason why 91 per cent of shoppers surveyed made purchases in-store, while 89 per cent of consumers used online promotions to make their purchases on the web. Promotions have been shown to impact a consumer’s plan to make a purchase, with 82 per cent planning their purchasing around promotions, including when and where they shop.

Promotions are also shown to impact customer loyalty. 68 per cent of consumers are more loyal to companies that use online coupons or promotion codes to drive sales, and the same number pass that information along to friends. 50 per cent of those surveyed would even be willing to buy a product at full price from that same company at a later date.

“Research continues to reiterate the positive impact that promotions have on consumers’ decision-making process when considering a purchase and in helping retailers achieve their revenue goals,” Michael Jones, senior vice president of retail and brand solutions at RetailMeNot, said in a press release. “By leveraging RetailMeNot’s marketplace platform, retailers win by increasing customer loyalty, building brand affinity and driving incremental sales both online and in-store.”

Nutrinor launches Nordic organic milk

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Nutrinor launches Nordic organic milk

Nutrinor, a dairy co-operative consisting of 15 organic farms in the Saguenay-Lac Saint Jean region of Quebec, is launching certified organic Nordic milk, which can be found on the shelves of Metro and Sobeys in Quebec and Adonis in Quebec and Ontario.

The milk is called Nordic due to the region’s varying climate, isolation and distance from more populated areas. Nutrinor’s Nordic milk lineup will include milk, chocolate milk and 10 and 35 per cent creams. The milk will be available in one or two litre containers in percentages of non-fat, one per cent, two per cent or 3.8 per cent fat. Nutrinor predicts it will sell 1.5 million litres of dairy in its first year.

“We live in a region where we can raise animals in the best conditions, far from other agricultural activities and protected from more urbanized Quebec by a national park,” Nutrinor General Manager Yves Girard told Canadian Grocer.

The milk packages will be displayed with Ecocert and AgroBoreal certifications.

Whole Foods’ fourth-quarter earnings surpass outlook

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Whole Foods’ fourth-quarter earnings surpass outlook

Whole Foods has reported its fourth-quarter profits reached US$128 million, or 35 cents per share, numbers that surpassed the 32 cents per share outlook for the quarter. In the same period last year, the company earned US$121 million, or 32 cents per share. Revenue grew by 9.4 per cent to US$3.26 billion, matching expectations.

Since Whole Foods has experienced a larger number of competitors in recent years, it has made an effort to set itself apart by being more transparent for consumers on product origin, its plans to label all products that contain genetically modified organisms by 2018, and offering one-hour grocery delivery in 15 markets in the United States. It has also made an effort to lower prices by advertising its store brands as a value-priced alternative.

Whole Foods currently has 400 locations, 13 of which are new locations opened this quarter, and would like to see 1,200 U.S. locations eventually. In its next fiscal year, the company believes its revenue will grow by single digits.

Loblaw’s real estate company experiences third quarter growth

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Western organic growers to get a boost

Loblaw’s real estate branch Choice Properties listed a net income of $122.3 million and rental revenue of $170.3 million in the third quarter, a growth since the same period last year.

Choice Properties’ net income for the period that ended on Sept. 30 incorporated an $84.8 million net gain from fair value adjustments.

The company’s net operating income grew by over $10 million, while its rental income grew by 10.9 per cent from $153.6 million in the third quarter last year. Choice Properties’ adjusted operation funds grew from 18.5 cents per unit to 18.9 cents per unit.

Amazon offers same-day delivery to Toronto and Vancouver

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Amazon offers same-day delivery to Toronto and Vancouver

Amazon.ca is raising the stakes with same-day delivery service in Toronto and Vancouver for this holiday season. Customers will be able to receive packages before 9p.m. if they ordered it before noon that same day. The new service also offers a flat rate delivery fee of $6.99 per order to Amazon Prime members. Customers are able to request same-day delivery every single day of the week, including weekends.

“With Same-Day Delivery, customers in Toronto and Vancouver can conveniently take care of errands or complete holiday shopping in a day with just a few clicks, receive orders seven days a week and have what they need delivered to their home in a matter of hours,” said Amazon.ca manager Alexandre Gagnon, reports Grocery Business.