Consumer Study: 63% Of Online Shoppers Expect Three-Day Delivery As Standard

Shoppers are looking beyond cost when making e-Commerce purchasing decisions, according to the 2018 Consumer Trends Report from Kibo. While price is still the most important factor for 61% of shoppers, its share has fallen from 70% in 2017. At the same time, a small but growing portion of shoppers rate other factors as more important:

  • Speed of fulfillment (8%, up from 2%);
  • Online shopping experience: (8%, up from 4%); and
  • Variety of fulfillment options: (7%, up from 4%).

Flexibility and speed are particularly important purchase influencers: 40% of shoppers say taking more than two days for delivery would prevent them from making a purchase, while 63% expect delivery within three days as the standard. Making a variety of delivery options visible early in the shopper journey also is important: 76% of shoppers say having multiple fulfillment options influences their purchasing decision, up from 64% in 2017. The findings are similar to the results of the Retail TouchPoints 2018 Last Mile Survey, which reported that 65% of consumers want greater shipment flexibility and 61% want faster deliveries.

“What we’ve been seeing is a shift towards convenience and a shift towards the experience portion of the buying cycle,” said Tushar Patel, CMO at Kibo in an interview with Retail TouchPoints. “As a consumer, the importance of the experience with my retailer, the experience I have online and the experience of receiving my items have gone up compared to price being the major factor.”

Usage of buy online, pick up in-store (BOPIS) services remains strong, and more than 66% of shoppers have chosen this option in the past six months. Avoidance of shipping fees is the most common reason, cited by 86% of shoppers, up from 79% in 2017. Other top reasons include:

  • Flexible pick-up times (85%, up from 78%);
  • The ability to touch and try merchandise (77%, up from 68%); and
  • Saving time at the store (76%, up from 71%).

When Shoppers Have A Product In Mind, They Visit Retailer Sites First

The most popular first stops for customers still researching brands or products are either a search engine (69%) or Amazon (61%). However, when a shopper knows what product and brand they want, 65% prefer going directly to a retailer’s web site. Other common destinations include:

  • A major retail store (47%);
  • A branded manufacturer’s web site (31%); and
  • An online marketplace (27%).


In comparison, when a shopper has a product in mind, but not a brand, their preferred channels are:


  • A retailer’s web site (66%);
  • A major retail store (41%);
  • An online marketplace (26%); and
  • A branded manufacturer’s web site (25%).


Retailers can use search engine optimization (SEO) to attract consumers to their web sites, but more work is needed to turn those visits into purchases. Approximately 87% of shoppers are influenced by peer reviews, and 91% have relied on reviews to make a purchasing decision in the past six months.


While 74% of shoppers are still somewhat, very or extremely influenced by interactive content that informs them about a product, that total is down from 92% in 2017. However, this doesn’t mean interactive content is becoming less important; rather, it indicates that shoppers need information to be tailored to them to drive engagement.


“When you’re catering to an individual’s intent and behaviors and their preferences, that’s when you’re really going to get the engagement,” said Patel. “What we’ve seen for retailers, and manufacturers as well, is when they’re driving individualized interactive content, that’s when you can get the most bang for your buck.”


Home Page Personalization Influences 63% Of Shoppers


Personalization can have a significant impact on purchasing decisions, but the most effective methods are changing. Approximately 63% of shoppers have been influenced by personalized recommendations on a homepage, down from 88% in 2017, while 50% of shoppers have been influenced by shopping cart recommendations, down from 93%. The influence of personalization is rapidly growing on the product page itself: 64% of consumers are influenced by recommendations there, up from 19% in 2017.


These results imply that many shoppers already know what they want by the time they visit a retailer’s web site and are skipping directly to the purchase. Retailers must make sure the checkout process remains simple even as they add personalization at the tail end of the buying journey: 78% of consumers say a simple, streamlined shopping cart influences their completion of a purchase.


“If you see what’s happening with mobile, see what’s happening with voice-enabled devices, experience is key,” said Patel. “No one buys on Alexa because it’s necessarily a cheaper way of doing it, but because the experience of buying is frictionless. Consumers are going to go towards the most friction-free way to shop whenever they’re given the option.”


Nine West Holdings To Restructure Under Bankruptcy

Nine West Holdings filed for Chapter 11 bankruptcy, and will restructure around its profitable and growing businesses, including One Jeanswear Group, The Jewelry Group, The Kasper Group and Anne Klein. The retailer received a $300 million loan from investors to fund operations during the process.

The bankruptcy process will facilitate the sale of the Nine West and Bandolino footwear and handbag business. Authentic Brands Group will submit an initial bid, and a competitive auction for the business will follow.

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Instacart Closes $350 Million Fundraising Round To Accelerate Expansion

Instacart raised $350 million in a Series E financing round led by Coatue Management, putting the grocery delivery company’s valuation at $4.35 billion. The round includes $200 million in funding that Instacart previously announced in a February blog post. The company has raised more than $1 billion since its founding in 2012.

Instacart will use the capital to double the size of its team, further expand its footprint across North America and invest in new products and services. The company has partnered with major grocery retailers including Kroger, Albertsons, Publix, Costco, Ahold Delhaize, HEB, Loblaw and Sam’s Club, and recently added BJ’s Wholesale Club and Fresh Thyme Farmers Market as well.

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Kirkland’s President/CEO Resigns

Kirkland’s President, CEO and Director W. Michael Madden has resigned, effective immediately. Michael B. Cairnes, EVP and COO, was named Acting CEO while the home décor retailer’s board conducts a search for a permanent replacement. Madden will serve as an Employee-Advisor to the board until June 30, 2018.

Cairnes has been with Kirkland’s since November 2016, overseeing marketing, e-Commerce, merchandising, planning and allocation, store and supply chain operations. Cairnes was previously with Michael’s Stores, where he served concurrently as President of Aaron’s Brothers and President of Artistree.

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Chef’d And Innit Launch Customizable Meal Kits

Chef’dChef’d will now offer customizable meal kits through the Innit app. Shoppers can order the exact ingredients they want and receive personalized instructions in-app, merging the journey from meal planning to preparation on one platform.

Once the ingredients in a meal are selected, shoppers can choose the date when Chef’d will deliver their purchase. The preparation process is simplified by “Culinary GPS” video guidance on the Innit app, which sequences steps so that every part of the meal is finished at the same time.

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Shopgate Creates VP Strategy And Solutions Role

Mike Haze

Mike HazeShopgate has appointed Michael Haze to the newly created position of VP of Strategy and Solutions. Haze will work with retailers to enhance the mobile shopping experience and expand the Software as a Service (SaaS) platform’s functionality, with tools including loyalty programs and in-store augmented reality (AR) capabilities.

Haze previously worked at Kibo Commerce as VP of Commerce Strategy and Solutions, where he was the leader of the solution engineering team. He also has served as VP of Product and Strategy Solutions at Mozu, where he created, built and executed strategic solutions for clients and partners.

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Symphony RetailAI Names VP Personalized Marketing

Symphony RetailAI has appointed Mike Bristol as VP Personalized Marketing. Bristol will be tasked with bringing to market the solution provider’s personalized marketing solutions, which help retailers better target customers with relevant, timely and personalized offers using artificial intelligence (AI).

Prior to joining Symphony RetailAI, Bristol was the Chief Revenue Officer at Endowance Solutions. He has more than 20 years of experience in customer relationship management in product management, sales and consulting roles for enterprise software companies including Ellucian, Infor, SAP, Baan and Aurum Software.

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VR In Marketing And Retail Could Generate $1.8 Billion By 2022

The use of virtual reality (VR) in the retail and marketing sectors is expected to generate $1.8 billion in 2022, up from $181 million in the last year, according to ABI Research. The technology has reached a point where VR can further enhance the at-home shopping experience.

The fashion, beauty and furniture industries have been the quickest to adopt VR and augmented reality (AR), with retailers including Macy’s, L’Oréal, IKEA and Ashley Furniture investing in these capabilities.

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Giant Food Rolls Out Healthy Food Ratings Chainwide

Giant Food, GIANT/MARTIN’S and Stop & Shop are the latest supermarket chains to roll out the Guiding Stars nutrition navigation program, which highlights particularly healthful items. Products can have one-star, two-star or three-star ratings, representing whether they have good, better or the best nutritional value.

The labels will appear at all 166 Giant, 171 GIANT/MARTIN’s and 410 Stop & Shop locations, as well as on tens of thousands of items offered by the Peapod grocery delivery service. Peadpod will let customers sort products by their Guiding Star rating on its e-Commerce site.

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Neiman Marcus Names New CFO

Neiman Marcus has appointed Adam Orvos as CFO, effective April 25. Orvos will lead finance, accounting, properties, capital planning and spend management functions, reporting directly to CEO Geoffroy van Raemdonck. Dale Stapleton, Interim CFO since June 2017, will continue in his capacity as Senior Vice President and Chief Accounting Officer.

Orvos has worked in retail since 1987, most recently as CEO at Total Wine & More. His prior experience includes CFO roles at Belk Department Stores and the Foley’s division of May Stores.

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