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How do stores suck you in?

Sales and promotions of course! Who doesn’t love a sale? These days you almost feel guilty buying a product or service for full price. Based on a recent survey from Nielsen, Canadians love bargains so much that 75% only buy items when they are on sale! When an astonishing percentage of the population only considers buying items on sale, retailers have no choice in becoming more promotion intensive. Instead of the traditional 4 times a year sale promotions, some retailers are promoting bi-weekly sales and discounts.

In a video posted by Yahoo Finance – Canada reveals tactics retailers use to attract customers by “discounting” items and how sale prices are determined. Below, we’ve highlighted how to point out if you are getting a real deal or the sale is a retail strategy trick in getting customers to buy more.

Price experts say it’s all in the price tag:

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* Image from Yahoo Finance – Canada

For Target: All priced items ending .99 is considered full-priced. When the last cent ends in either a 4 or an 8, the item is on clearance. On the top of the price tag is a number that represents the percentage the item is discounted at.

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* Image from Yahoo Finance – Canada

For Old Navy and The Gap: Final number ending in 7 is considered a final markdown price.

 

To view the video:

https://ca.finance.yahoo.com/video/stores-determine-sale-prices-210619243.html

 

 

 

 

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Inside Gap’s Ship-from-Store Strategy

To execute a successful ship-from-store strategy, companies need to have technology staff and tools that understand both consumer trends and company goals. The Gap has effectively connected these two halves according to Information Week.

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From the article:

To bridge those two inventory sources, Gap came up with an algorithm, known as Ship From Store, at the end of 2012 and implemented it in the website e-commerce system. Ship From Store lets online shoppers buy directly from store inventory — though not from all stores, a factor that’s key to making the new feature profitable.

The challenge was that the e-commerce system would bog down if it had to check the inventory of every store, which changes hour by hour. So knowing which stores to include is “the secret sauce,” says Paul Chapman, Gap’s senior VP of IT. Asked how many stores the system taps, or what percentage of online shoppers find items in warehouses compared with before Ship From Store, Chapman says that’s proprietary information. Other retailers, Chapman believes, are working on this same Ship From Store concept.

Another reason not all Gap locations are included: The staff in participating stores must be trained and equipped to receive an order and ship the goods, the same as a fulfillment and distribution center. When the website tells a customer that a Ship From Store delivery will occur the next day, “it’s up to us to make that happen,” says Chapman. His developers have blended Ship From Store into the e-commerce system so that customers aren’t aware of it.

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Gap Makes Big Play With New Campaign

Gap sees a resurgence in their brand through a retail mainstay, the blue jean. According to an article on MediaPost, the new campaign is designed to get back to the Gap’s roots while luring in millennials.

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From the article:

“Back to Blue means getting back to what matters most — our truest selves, when we are most comfortable in our own skin,” says Gap CMO Seth Farbman in its release. “It’s both a statement of how we feel as a brand, and how our customers want to live their lives and make their decisions.”

Much of the collection harkens back to the brand’s 1969 design roots. The effort includes a commitment to new digital content on a daily basis.

In addition to Facebook, Twitter, Pinterest, and Instagram, there is a Tumblr contest, encouraging consumers to create content, with the winning work earning a spot on Gap’s Tumblr, which will then be turned into Tumblr mobile ads. Gap says it’s the first time a brand will own all of Tumblr’s mobile ads in one day.

Gap is also beefing up content and adding video to its Styld.by platform, now in 30 counties, which partners with bloggers and style experts to create fall looks. There’s a series on style from Jenn Rogien, the costume designer for HBO’s “Girls,” for example. And it also includes features from 24 Gen Y style setters, including Tanisha Long from MTV’s “Girl Code” and “Urban Bush Babes” blogger Cipriana Quann, “sharing simple, raw and relatable stories about what it means to be one’s most authentic self,” it says. In the series of photos, short films and gifts, each appears in a favorite piece from the new fall “Back to Blue” collection.

The Gap, Big Data, Personalization, SHopper Marketing

Gap Shifts Focus Towards Big Data and Personalization

In a move to further marry the online and in-store shopping experience, The Gap is turning to Big Data to develop a more personalized experience. According to RIS News, they have never lacked the appropriate data, rather they needed a way to turn that data into information relevant to their shoppers.

The Gap, Big Data, Personalization, SHopper Marketing

From the article:

For The Gap, personalization will, has, and is forming the bridge between the online world and the brick-and-mortar experience. If customers shop online don’t buy, the wish list on the website will now be available on iPad mini or tablet or smartphone, and follow customers into the store. “That’s an obvious no-brainer that,” said Arthur Peck, president of growth, innovation and digital for The Gap on a recent call with analysts. “That shopping experience should be seamless across those channels and then show up and pop up in the store environment.”

Personalization comes to life when a device lights up as customers cross the lease line, recognizes who they are, and the shopping experience begins there. Bringing this to life will create a great multi-tender loyalty experience.

“What we’re talking about with multi-tender loyalty experience is giving you, the customer, the incentive to self-identify at the beginning of your shopping experience,” continued Peck. “And that allows us to then initiate a personalized shopping experience, whether it’s on the website or in a brick-and-mortar experience. It allows us to personalize a promotional offer. You can derive individual elasticity curves on the basis of a pretty modest amount of data. It allows us to personalize product information as you’re walking across the store. A sales associate today would have to recognize me, know when I was last in the store, know what my size is and when I last purchased 1969 denim to tell me that, when I come into the store again, there are new washes available in my favorite fit and size.”