‘Big Issues’
in Retail Survey 2015/6
Centre for Advanced Retail Studies (CARS)
Massey Business School
Headline results
15%
8%
15%
12%
5%
8%
Rest of North Island 16%
Rest of South Island 13%
Australia 2.3%
Other international markets 3.5%
Director 42%
CEO 25%
Self- Employed
20%
Other 5%
Manager 4%
Dept.
Head 4%
Respondents Geography
Total sample: 263
7%
37%
26%
10%
5%
15%
Number of employees
1 2 to 5 6 to 19 20 to 49 50 to 99 100+
34%
14% 16%
19%
6%
3% 2%
6%
Annual revenue
Clothing 12%
Sport/camping 8%
Footwear 6%
Furniture 6%
Online only (4%) 1: 55%
2: 14%
3-5: 8%
6-10: 6%
11+: 14%
Number of stores Sectors
Market confidence
Change in business activities
in last 3 months
13%
27%
60%
Decrease Same Increase
11%
39%
50%
Change in retail sales in next
3 months
The future is bright!
Some stability in the marketplace
34%
46%
20%
Decrease Stay the same Increase
2%
58%
40%
Decrease Same Rise
Prices charged to consumers Amount of Supplier
orders
Large companies are most likely to increase the number of stores in next three months
0 1 2 3-5' 6-10' 11+
Decrease Stay the Same Increase
Biggest growth in employment is seen by 100+
employee businesses
1 2-5 6-19 20-49 50-99 100+
Decrease Stay the same Increase
Customer behaviour
Customers are becoming more demanding
13%
31% 42%
14%
Strongly agree Agree Neither Agree nor Disagree Disagree
NZ wide (in all major cities)
69%
62%
60%
58%
57%
Wellington
Auckland
Other South Island town/
city
Other Norths Island town/
city
Customers are becoming more price sensitive
29% 59%
12%
Agree + Strongly agree Neither Agree nor Disagree Disagree
Other
10%
Clothing
Furniture Sports/
camping equipment
7%
9%
16%
Areas with the biggest price sensitivity
My company's customer needs have become more varied over the last 12 months
8%
48%
36%
8%
Strongly agree Agree Neither Agree nor Disagree Disagree
All cities except Dunedin are experiencing customers with increased variety of
needs
2 2.5 3 3.5 4 4.5 5 Online vouchers for redemption
Customer collaboration tools Loyalty programmes Email marketing Social media Improving the online experience for users Maintaining privacy of customer information Improving the in-store experience for users
Mean
Customer-Loyalty Strategy
Key driver of customer loyalty
Improving the in-store experience is key to loyalty
Key: 1: Disagree – 5: Strongly Agree
Data
Predominantly sole business owners are the ones who aren’t collecting data
65%
35%
Collects Data Yes No
Almost 1 in 4 sole
operated businesses is not collecting data
Around 1 in 3
businesses with 2-19 employees are not collecting data
Time is (still) the most common challenge in collecting data
18%
17%
13% 15%
13%
11%
13%
Time consuming Costs of collection
Lack staff with data analysis capabiliites Lack of tools
Poor response rate Uncertain ROI Other
Operating environment
3.5 3.6 3.7 3.8 3.9 4 4.1 4.2 4.3 4.4
Website's Ambience Store's Ambience Responsiveness Customer Service
Mean
Underlying Dimensions
Perceived importance of retail mix elements
Customer service is key!
Key: 1: Disagree – 5: Strongly Agree
1 1.5 2 2.5 3 3.5 4 4.5
Digital Communication Mass Media Advertising E-Commerce Direct Marketing Integrated Marketing Store Operations
Mean
Key driver of sales
Store operations as the key driver of sales
Key: 1: Disagree – 5: Strongly Agree
Marketing
1 2 3 4 5 6 7 8 9
Video blogging TV Blogging Paid Search Mobile Radio Email Print Media SEO Social Media
Mean
Channel
Perceived importance of communication channels
Social media, SEO, and print(!) are driving the way
Key: 1 Most important; 11 Least important
Greatest opportunity in next 12 months lies in development of online marketing
Targeted marketing to
retain and grow brand awareness and
sales.
Collaboration with other companies
The growth of our website and a further reach to
customers via Facebook Diversification and
expanding Internet and mobile
websites Gaining momentum in advertising via each engine and
social media Expansion into education and
services based around our key
products
Keeping up with demand
without effecting quality of service
Getting the most from our marketing budget
to meet growth expectations
Competing with overseas purchases, where same product
purchased cheaper without GST Competition
from imports, online shopping, big
box retailers
Reaching the desired
market
The greatest challenge facing companies in the next 12 months is competing with online trading and competing with bigger stores
Human resources
The main human capital challenge facing companies is retention along with remuneration
Biggest immediate challenges or in next 12 months
Biggest challenges in 2-3
year Biggest challenges in 3+
years
Staff training and development
Remuneration Remuneration Remuneration
Retention Retention
The main challenges facing HR is increasing wages, the aging population, and lack of skills
Training staff to a high level and then retaining them in
the industry Training and
development due to time management and human and cost
resources
Flexible working to maintain a competent
team Finding staff capable of
turning analytical insights into actionable retail
strategies
Coaching because I want my employees to
have the confidence to make decisions
Balance between number of employees and current contracts
Universities could aid in developing future employees but giving more hands on experience as well as
understanding the needs of the workforce more
Develop social interaction and understanding of customer requirements Better
understanding of small business needs and costs.
Improving report writing
skills
Setting expectations of timelines for career
advancement
Practical experience in
people skills
For further information, please contact:
Associate Professor Jonathan Elms
The Sir Stephen Tindall Chair in Retail Management Director, Centre for Advanced Retail Studies (CARS)
j.r.elms@massey.ac.nz
