Retail Observer

RETAILOBSERVER.COM JULY 2016 44 I n the retail sales business, an online presence has become absolutely imperative in order to remain competitive in today's marketplace. Despite the growing popularity of online sales, the majority of customers continue to buy products such as electronics and appliances in-store. However, the first step in the buying process begins with an examination of the product's specifications, features, and price on the company's website. The website is also the primary means through which a store's location is found. In essence, a retail business's online presence acts as not only an avenue through which the customer may purchase a product electronically, but also the jumping-off point for a potential in-store sale. The website essentially succeeds in providing a dual function by facilitating both varieties of purchase. For these reasons, a coherent and sophisticated web presence is absolutely indispensable to any retail sales company, particularly an independent outfit. The rewards of an online presence are most obvious in terms of e-commerce. A company's website is an easy way to increase sales without the customer even visiting the sales floor. The continued growth of online sales does not appear to be slowing. According to the Census Bureau of the US Department of Commerce, the estimate of U.S. retail e-commerce sales for the 1st quarter of 2016 was $92.8 billion, which represented a 3.7% increase from the fourth quarter of 2015. This sales phenomenon is due in no small part to a functional and alluring website. Despite the popularity of e-commerce, it must be noted that a coherent online presence also succeeds handily in bringing customers into a store to buy. When it comes to retail sales, particularly within the appliance and electronics market, there is still the desire by the customer to see the product in person and even touch it. This cannot be done online so the website provides the initial investigation tool. At first view, the site allows the customer to become acquainted with the store. Once on the website, prospective customers can see what the store looks like, check its locations, hours and contact information, view featured brands and products, and find occurrences of discounts and sales. For the savvier customers, the website may direct them to a competitive awards program or store credit card. The online presence is needed to set a tone for your business and to motivate people to come to your location. Sales made within the confines of a store remain formidable. According to the Census Bureau's study, e-commerce sales, despite consistent growth, made up only 7.7% of total retail sales for this year's first quarter. The fact remains that the majority of a retail store's sales remain on the floor along with a dedicated and seasoned sales team. The company website fosters this growth mechanism while acting as the common denominator for both in-store and online sales. As one of the most important factors in a company's success, a store's website also presents a unique array of challenges. Without it, the ability to drive sales would be in question. Constant vigilance and maintenance of the site is absolutely necessary for customer awareness. An antiquated or cumbersome website is a direct reflection on the quality of your business and risks turning off the customer whether he intends to buy online or in-store. For an independent retailer, who fights a perpetual battle for survival with its big boxed competitors, an outdated or incoherent website would be a threat to its very survival. With the stakes that high, website developers may be as important to a store as its sales department. For continued sales growth and the ability to reach a customer base that is consistently bombarded by advertising across several different mediums, it is ironic that a company's main ally remains the standard website. In many respects, it has supplanted the store window as the primary representation for retail businesses. As long as customers still drive to a store's location to make a purchase or add an item to their online shopping carts, it would appear that an informative online presence will continue to influence retail sales for years to come. John White Appliance Trends RO ONLINE PRESENCE A M UST FOR SUCCESS IN RETAIL SALES John White EVP Appliances, BrandSource

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