Here on Merchandising Matters, we have discussed the importance of “retail localization”, particularly as it pertains to in-store marketing campaigns within the store. But a new report from RSR Research (sponsored by MaxPoint Interactive), out today, sheds some light on the localized advertising efforts of today’s top retailers centered on driving traffic into the store. So how did today’s leading retailers do?
To start, RSR divided the criteria into four categories: traditional advertising, digital advertising, alternative offers and on-site communication, putting emphasis on channels that are primarily used for communicating offers and promotions. Retailers were selected based on their ranking within STORES magazine’s 2010 Top 100 Retailers and the 2010 Hot 100 Retailers (ranked by revenue and revenue growth, respectively). From there, four market verticals were selected – department/clothing stores, electronics, sporting goods and casual dining restaurants.
The net result across all retailers: while there are specific instances of localized inspiration, as a whole, retailers have not implemented localization as a major part of their advertising strategy, particularly as it relates to driving traffic to stores.
The top 5 retailers’ scores (based on a total of 45 possible points):
1. Macy’s – 31.5 points
2. J.C. Penney – 31 points
3. Sports Authority – 30.5 points
4. Best Buy – 30 points
5. Kohl’s – 26.5 points
We must admit that we are not surprised to see Macy’s rank in the number one spot. Of all the top national retail chains, Macy’s has really focused on the localization of its stores with its My Macy’s initiative, which was developed with the goal of ensuring core customers surrounding each Macy’s store find merchandise assortments, size ranges, marketing programs and shopping experiences that are custom-tailored to their needs.
The report highlights other successful initiatives and offers retailers four specific recommendations around localized advertising efforts that will help drive consumers into their stores. Click the link to download a complimentary copy of “The Local Approach: The State of Localized Advertising in Retail.”