Store Expansion Back on the Agenda for 2011
Retailers appear to be back in expansion mode. According to the
ninth annual Retail Horizons: Benchmarks for 2010 report from the NRF and KPMG
LLP, 41 percent of retailers intend to increase domestic store expansions in
2011, up from 25 percent in 2010. Additionally, 25 percent will expand overseas,
up from 21 percent a year ago.
Signaling a consensus that the worst is behind
them, 58 percent of the 318 retail executives surveyed report that cost reduction/cost
containment will remain a companywide strategic initiative, down from 81 percent
One dramatic change is that 69 percent identified mobile e-commerce
or m-commerce as a strategic initiative, up from only 28 percent a year ago.
“It’s quite obvious retailers are anxious to put the recession
behind them and build upon their customer service initiatives, enhance their
mobile platforms and even grow their footprint,” said Katherine Mance,
Executive Director, NRF Foundation, in a press release. “As we move forward
in 2011, retailers will strive to keep costs low, but will also continue to
focus on providing positive and unique shopping experiences for their customers.
report paints an encouraging picture of the coming year for both retailers
Among other findings:
- About three-quarters (74 percent) of retailers in 2011 will increase their
consumer insight and data gathering initiatives, up from 65 percent in 2010.
- Seventy-nine percent of retailers report using Twitter, up from 61 percent
in 2009. An additional 18 percent plan on using the social networking site
for their e-commerce program during the next 18 months.
- In reviewing customer insight initiatives, 78 percent of the execs ranked
customer loyalty programs first, up from 65 percent a year ago.
- Three-quarters said customer service would be a top priority in 2011, up
from 56 percent.
- Eighty percent of retailers surveyed said leadership development will be
a top priority in 2011, up from 69 percent in 2010.
- Among supply chain initiatives, greater focus will be made for optimizing
the distribution network, increasing from 38 percent in 2010 to 52 percent
in 2011, and for cross-docking, up from 17 percent to 24 percent.
Say Store Expansion High on Agenda for 2011, NRF/KPMG Report Finds – The
National Retail Federation
Discussion Questions: What should retailers have learned from past ramped-up expansion efforts out of downturns? How do you think retailers’ spending priorities will shift in 2011 with the economy showing some recovery?