Low flow to stores in shopping malls leads to a fall of 8% in the average sales
Daily Financial / February 18, 2019
The entrance to stores declined by 6.8 per cent, with the 519 people per day per location. This was boosted with the ticket average has dropped to 3.4%, although in some categories has reached 10%.
The complex scenario faced by the retail industry in 2018 is set to be translated in the figures. This is an analysis of a group of 1,200 stores the stand alone type, present in 70 shopping centers throughout the country, which saw a drop in its main indicators.
This comes to ratify something that has been seen for several months, which is the weakness in consumption.
A few days ago, the report of the Perception of Business showed that the majority of those surveyed by the Central Bank in the retail, had been lower than expected, as explained by the choice of cheaper products, the lower influx of argentine tourists, and the penetration of the digital channel.
According to the analysis conducted by the consultant FollowUP Customer Experience, which, among other services placed counters of people in 2,000 stores in the country, “the retail industry in physical stores closed one of their worst years,”.
The average sale of a store closed at $ 1.864.000 per day, which is 8% less than the $ 2.014.000 of 2017, according to data analyzed from comparable store.
“At a general level, the main indicators that caused this drop in sales to level industry were the flow which fell by 6.8% over the past year, and the average price (of the purchased products), which fell 4%”, says the report.
Changes in the rate of conversion
Average percentage of entries that are to be converted in purchase
With regard to the flow input to the shops, 70 shopping centers that continues to FollowUP, only 30% was able to have a positive variation in the indicator versus 2017. Five of the commercial centers of the worse performance of your portfolio averaged a decline of 14%. This measures the number of entries to store in the malls, not all people who come to a mall, because these enclosures have been heightened other services relating to entertainment.
The five malls of better performance averaged a growth of 10% in traffic to shop.
In the judgment of FollowUP, the e-commerce and the emergence of applications with last mile, less-arrival of argentine and the same expansion of shopping centers and streep centers in areas where before there had been coverage, have influenced these results.
Categories with the greatest effects
The signature specifies that among the groups most affected were found to outdoor, which declined 15% in the average selling daily, closing at $ 1.920.235. “Is mainly due to the flow fell 12% (428 people per day come to a store) and the ticket is on average 9% ($ 56.539)”, comment.
Another equally affected were the stores that fall into the category of outlet, backing up 14% in the average sales of the stores, to $ 2.204.000. This is explained by a decline of 7% in the flow, to be placed in 511 people per day per store, which was accompanied with a worse conversion rate, which was 5% less than in 2017. This last indicator measures the percentage of people with that particular purchase when you enter a store.
Daily sale average per store
“If you look at the children's category, which had a 6% drop in sales, we realize that it is mainly due to the indicator of the average price (of any products purchased from a ballot), which fell 14% over the past year, being the most critical of all categories. This strategy of lower prices made the items by ticket will increase 5% and the conversion rate of 7%, however it was not enough to compensate for the drop of the flag,” he added.
Underwear increased the average prices of its products by 10%, which was influenced by a fall in the articles by ticket of 7% (2.7 units per ballot), the same magnitude that we saw in the conversion rate.
The category costume adult man was the most affected in flow, having a fall of 12%, to 204 people daily in the stores monitored in this segment.
However, he managed to take this opportunity to respond in a personalized manner and in this way increase 7% to your conversion rate. With this, 11% of those who come to these locations in one day, they end up buying.
This phenomenon helped offset a large part of the decline in sales, which fell 6% to $ 2.217.916.
The balance of retail in 2018
The Country Manager of FollowUP Customer Experience, says that shopping malls and stores must create joint strategies
– What you should expect for this year in terms of flow shop in shopping centers?
– In our judgment, visits to the mall, they should tend to stabilize the flows to shop, at least respects to the previous year. However, this will vary in each shopping center, according to the strategy of attracting customers.
Today the focus of the malls is to convert this space into an experience, a meeting place and entertainment, that should result in greater flow, however, must be aligned with the stores and create a strategy together to ensure that the people who go not only to address the areas of entertainment, but have an incentive to enter the stores.
This means not just apply to proposals for reduced prices, but that there must be a lot more creativity and differentiation, it should be known to the client to know in detail what and how we need to deliver the service. Malls and stores must deliver an experience together, with a shared strategy, they should become partners.
– What is the effect due to the lower arrival of argentine tourists should continue to affect the traffic during this year?
– Should not continue to affect, should aim to stabilize, the fall of flow already took it very hard for two seasons, but that should already be past.
“The e-commerce is a reason why the flow-shop fall and will continue to affect”
– What categories might present the best and worst results during this year?
– This question can be linked to e-commerce, given that there are categories that have and probably will have a greater growth in that channel during this year and that, therefore, will affect the flow and sale of the physical store.
To greater ease of replacement products of low price and low differentiation, then your risk of being replaced or purchased through e-commerce increases in an important way. For example, the footwear category grows so important in the online channel which also has affected you in your flow shop.
“A greater ease-of-replacement products with little differentiation, the risk of being replaced or, if purchased in e-commerce increases”.
Michelle Schnitzer
FollowUP Customer Experience
All of the products in which the quality does not need to be perceived physically, they are risk factors, however one that leads the design, the feel, the exclusivity and where your price is generally higher, it will be difficult to be replaced by the e-commerce.
– How relevant is the ratio between growth of e-commerce traffic to stores?
– The e-commerce is one of the reasons for which the flow to store fell and we believe that this year is going to continue to affect, however, to be able to compensate for this drop in flow and grow sales, make more efficient the store. For that work must be done to respond more personalized, give yourself the time to get to know the client, to provide a quality service and deliver an experience in store, which will result in an increase in the rate of conversion, and probably in other indicators such as ticket and average items per ticket, which will eventually raise sales.
The omnicanalidad it is promoting more and more, this gives the stores a new sales opportunity, therefore, we must create innovative strategies for that client that you are going to remove the product, have the incentive and the urge to stay vitrineando and buy something extra.
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