‘Techno-shopping’ Likely to Become Even Bigger in 2010

Look for an increase in “techno-shopping” in the coming months, says Dr. Kristy Reynolds, Bruno Associate Professor of Marketing at The University of Alabama Culverhouse College of Commerce.

“Many small businesses that can’t afford big ad budgets are using Twitter to reach their long-time customers,” Reynolds says. “Customers can register to follow the company on Twitter, and the company Tweets these customers on things such as price promotions, new merchandise arrivals and special events. Larger companies, such as Best Buy, will increase their usage of social media also. Best Buy used Twitter to reach customers and made Twitter, as well as Facebook, centerpieces of its holiday-ad campaign this year. Other companies, such as Victoria’s Secret and Ralph Lauren, offer online shopping options formatted for cell phone screens.”

She also says we can expect an increase in shopping-related cell phone applications. “For example, with a cell phone app called ShopSavvy, shoppers can use their phones to photograph a product’s bar code in a store. The app then searches the Internet for the best deal on that product online. Many more new technologies like ShopSavvy are on the horizon,” she says.

And with more shoppers choosing to shop online, many companies will invest more time, effort and resources into this area, Reynolds predicts. “Recently JC Penney decided to discontinue its holiday and mid-year catalogs. This decision was based on research that indicated the catalog is becoming obsolete with shoppers, and customers are more likely to use the online channel, compared to the catalog,” she says.

Other retailing trends Reynolds expects are leaner inventories, urban locations and smaller stores.

“When sales dipped during the fall of 2008, retailers were left with high levels of un-sold merchandise, which led to huge markdowns. In an effort to re-train consumers and save margins, companies will maintain this strategy. Saks is focusing on carrying less merchandise and selling it at full price. In many instances, shoppers will have to buy something now if they really want it.

“We will likely see more retail locations in the city. JC Penney opened its first location in New York City in July 2009, and Target plans its first store in Manhattan in 2010.  It is currently testing a mini-store in the Atlantic Terminal in Brooklyn.”

Companies see this as one way to reach new markets. Many of the inner-city spaces are smaller than the suburban locations. Retailers want to make their stores more navigable for shoppers and easy to get in and get out. Some Target urban locations stock 25 percent fewer items than a traditional Target store.