Regaining the emotional higher ground at retail For more white papers and webinars, go to http://www.sldesignlounge.com Or visit us at http://www.sld.com

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Re:Store – Redefining Retail
Regaining the emotional higher ground at retail
redefining retail

2. Hotspex delivers provocative marketing research
insights that help clients confidently make informed,
inspired decisions. It differentiates itself from other
research companies in three ways:
• Consumer engagement
• Client engagement
• Business focused analysis
The meaningful, actionable insights that result from
our work allow our clients – some of the world's
leading brands – to develop better strategies,
innovations and executions.

3. Shikatani Lacroix is a leading branding and design firm
located in Toronto, Canada.
The company wins commissions from all around the world,
across CPG, retail and service industries, helping clients
achieve success within their operating markets.
It does this by enabling its clients’ brands to better connect
with their consumers through a variety of core services
including corporate identity and communication, brand
experience design, packaging, naming and product design.

4. In 2009, Shikatani Lacroix launched Design Lounge, a
website devoted to thought leadership and branding
innovation.
Since its inception, the website has hosted a wide variety of
thought provoking video webinars and white papers on all
things brand related. In 2011, Design Lounge launched its
first groundbreaking study on the role of packaging in an
online world.

5. Shifting power structure

6. Who will win this tug of war?

7. •Cross-Shopping Behavior: How
consumers utilize the online
and retail environments
•The Emotional Content of
Shopping: Online vs. offline
•Brand Profiles
•The Ideal Shopping Experience:
What consumers want from
retailers online and offline

8. Respondent profile
WOMEN MEN U.S. CANADA
HOUSEHOLD
GOODS
PERSONAL
CARE
BOOKS CLOTHING ELECTRONICS
1049 981 1020 1010 411 400 407 407 405
52% 48% 50% 50% 20% 20% 20% 20% 20%

9. Visiting retail store locations
Mass
Merchandiser
(n=638)
%
Walmart 83
Target 69
JC Penny 38
Sears 34
Kmart 34
Sam’s Club 27
Costco 24
Top 3 Retailers
Most Often Visited
%
Walmart 53
Target 25
Costco 6
Bookstore
(n=591)
%
Barnes & Noble 68
Local / independent
book store 20
Borders 16
BAM! (Books-a-
Million) 9
Top 3 Retailers
Most Often Visited
%
Barnes & Noble 60
Local/independent
book store 11
Borders 6
Clothing/ Fashion
(n=630)
%
Kohl’s 54
Macy’s 50
TJ Maxx 35
Marshalls 28
Gap 22
Bloomingdale’s 8
Neiman Marcus 7
Top 3 Retailers
Most Often Visited
%
Kohl’s 31
Macy’s 24
TJ Maxx 8
Drugstore
(n=602)
%
Walgreens 66
CVS 61
USA Drug Stores
(Super D, May’s) 3
Top 3 Retailers
Most Often Visited
%
Walgreens 44
CVS 43
USA Drug Stores
(Super D, May’s) 1
Electronics/
Appliances
(n=599)
%
Best Buy 77
Radio Shack 28
Fry’s 11
Circuit City 8
Top 3 Retailers
Most Often Visited
%
Best Buy 70
Radio Shack 9
Fry’s 5

10. Visiting online retail websites
Mass
Merchandiser
(n=638)
%
walmart.com 66
ebay.com 59
target.com 51
craigslist.org 39
jcpenny.com 32
sears.com 28
Top 3 Online Sites
Most Often Visited
%
walmart.com 36
ebay.com 21
target.com 17
Bookstore
(n=591)
%
amazon.com 87
ebay.com 47
barnesandnoble.
com 45
apple.com 14
booksamillion.com 7
abebooks.com 6
Top 3 Online Sites
Most Often Visited
%
amazon.com 75
barnesandnoble.
com 11
ebay.com 6
Clothing/ Fashion
(n=630)
%
macys.com 42
thegap.com 17
landsend.com 15
llbean.com 12
jcrew.com 9
lanebryant.com 7
Top 3 Online Sites
Most Often Visited
%
macys.com 31
thegap.com 8
llbean.com 5
Drugstore
(n=602)
%
walgreens.com 42
cvs.com 37
drugstore.com 25
edrugstore.md 2
canadianmedsusa.
com 2
Top 3 Online Sites
Most Often Visited
%
walgreens.com 28
cvs.com 22
drugstore.com 17
Electronics/
Appliances
(n=599)
%
amazon.com 78
bestbuy.com 57
ebay.com 49
craigslist.org 29
apple.com 20
frys.com 10
Top 3 Online Sites
Most Often Visited
%
amazon.com 55
bestbuy.com 21
ebay.com 8

11. Online easy
Shoppers consider themselves very
knowledgeable and comfortable with
crossover shopping
50% to 70% browse in the store and
then buy online
70%
Browse then shop
online
30%
Browse and shop in
store

12. Online shopping on growth path
Shoppers’ online shopping activity will continue to grow. In the next
five to 10 years, about half of their shopping activity will be online
rather than in store
Legend
HOUSEHOLD
GOODS/MASS
MERCHANDISE
PERSONAL CARE/
COSMETICS/
MEDICATIONS
BOOKS/
MAGAZINES/
MEDIA
CLOTHING/
FASHION
ELECTRONICS/
APPLIANCES
redefining retail

13. Online shopping on growth path
% of time spent shopping ONLINE
rather than retail
5-10 years
in the future
Present
11%
10%
19%
15%
24%
29%
28%
46%
30%
42%
redefining retail
0-25%
26-50%
51-75%
76-100%
L E G E N D

14. Almost half of shoppers are
using their mobile phones to
check prices while in store in
the electronics category and
about 40% in other categories
Smartphone smart pricing

15. Retail sales erosion
Potential retail sales leakage is about 15% of all browsers going
to an online retailer and specifically 7% going to Amazon.com

16. Browse store and buy online
Shopped for Category in Store
But Bought Online
(%)
NET Electronics 24
DVD/movies 5
CD/music 3
NET Clothing & Accessories 17
Shoes 3
Other clothing mentions 3
Books 14
Specific Store or Website
Name
11
NET Personal Care 7
NET Houseware/Furniture
Appliances
6
NET Cosmetics/Perfume 4
Cleaning supplies 3
Other 4
Don't know/refused 3
Store (%)
Walmart 15
Best Buy 11
Barnes and Noble 7
Target 6
Amazon 5
Macy's 4
Don't know/refused 2
None 3
Browsed
a store …
…but bought
online
Website (%)
Amazon 46
Walmart 8
eBay 5
Other clothing/apparel
websites
3
Other website mentions 4
Don’t know/refused 3
None/nowhere/I did
not buy online
3
• Browse stores and buy online behavior most common in electronics
• Walmart and Best Buy lead in stores browsed but then purchases
made online
• Amazon clearly dominates online purchases

17. Buying from retailer website
Buying from a traditional retailer website (%)
Mass
Merchandise
Drugstore
Books/
Magazines/
Media
Clothing/
Fashion
Electronics/
Appliances
A B C D E
n=211 n=199 n=202 n=203 n=205
Very Often 26 24 30 29
38
AB
Sometimes 45 42 39 48 45
Rarely 18E 18 18E 15 11
Never 11 17DE 12E 8 6
70 66 69 76
B
82
ABC
Buying from a traditional retailer’s website appears to be
quite important, particularly to those purchasing
electronics/appliances
11%
Never
16%
Rarely
44%
Sometimes
29%
Very Often

18. Non-retailer websites
Websites
Mass
Merchandise
n=157
(%)
Amazon 45
eBay 13
Walmart 9
Overstock.com 4
Target 4
Websites
Drugstore
n=151
(%)
Amazon 42
eBay 7
Drugstore.com 7
Walmart 7
Target 7
CVS 3
Sephora 3
Websites
(Books/
Magazines/
Media)
n=141
(%)
Amazon 58
eBay 16
Barnes and Noble 9
Walmart 4
Websites
(Clothing/
Fashion)
n=145
(%)
Amazon 36
eBay 13
Macy’s 6
Walmart 5
JC Penney 5
Target 4
Overstock.com 3
Kohl’s 3
Websites
(Electronics/
Appliances)
n=128
(%)
Amazon 48
eBay 20
Best Buy 6
Newegg 5
Target 5
Walmart 5
• Amazon has a very strong lead across all categories but
particularly for books/magazines
• eBay ranks a distant second

19. Reasons for going online
Reasons for Going Online (%)
NET Prices 60
Value/price: online is cheaper 49
Offers special deals or promotions 8
Compare prices 4
Check prices 2
NET Selection 25
Variety/carries the brands I like 14
SUBNET Had What I Wanted/Needed 11
Had what I wanted/needed 3
In stock 3
Had my size/more sizes 3
NET Easier/Faster 14
So easy - click and buy 11
Fast/ faster 3
NET Convenient 12
Convenience 8
I can do it all from home 2
I can shop anytime I like 2
NET Shipping 10
Free shipping 7
Delivery/home delivery 2
NET Out of Stock/Unavailable in Store 6
Not available/couldn't find in store 4
NET Other Positive Attributes 6
Comparison shop 3
NET Information/Research 4
NET Gift Card/Credit 3
Other 4
Don't know/none/refused 4
• Price is the overriding
reason for purchasing online
versus in store
• Selection is a distant
second; consumers say
online provides greater
variety or is more likely to
include exactly what is
needed

20. Would have bought at store if …
Would Have Bought at Store If … (%)
A guarantee that prices shown will match online
retailers
45
Offer a selection not available online 37
Ability to quickly price compare with online prices 31
Reward points/store loyalty program 27
Free shipping and installation 23
Ability to shop online at the retailer's site while in
the store
19
An in-store guarantee/extended warranty offered
by retailer
15
A retailer app that allows me to scan and price
compare all competitor prices
13
Better financing on big-ticket items 8
Concierge service 5
Seminars on how to best use the product 5
Other 11
If not
never…
(88%)
Browse in store but buy online (%)
15%
Very Often
29%
Rarely
12%
Never
44%
Sometimes
Matches online prices, offers unique
items, introduces loyalty programs,
makes it easy to compare retail to
online pricing, and offers free
shipping and installation

21. Reasons for not buying at store
Reasons for Not Buying at Store (%)
NET Prices 49
Value/price: online is cheaper 45
Offers special deals or promotions 3
NET Limited Selection 30
SUBNET Out of Stock/Unavailable 22
Not available/couldn't find in store 12
Not in stock/out of stock (in store) 7
Didn't have my size (in store) 4
Less/limited selection 9
NET Having To Travel 5
Driving/did not want to drive/cost of gas 3
NET People In Store 3
Bad customer service/sales staff 3
Other reasons for not shopping in store 7
NET Less Crowded 6
I don’t like crowded malls 5
NET Selection 5
Had what I wanted/needed 3
Don't know/none/refused 7
• Price and selection are also the
key reasons for not making a
purchase at a retail outlet
• Almost one in four specifically
say they turn to online
shopping when the item they
want is not available via retail
outlets

22. Consumer knowledge
If very/somewhat knowledgeable (95%)…
% just as knowledgeable if not more
than salesperson
Mass
Merchandise Drugstore
Books/ Mags/
Media
Clothing/
Fashion
Electronics/
Appliances
A B C D E
n=207 n=187 n=191 n=188 n=197
Very Often 40 37 38 43 39
Sometimes 53 50 51 46 46
Rarely 6 11 10 9 13A
Never 1 2 1 2 2
93
BE
87 89 89 85
2%
Never
10%
Rarely
49%
Sometimes
39%
Often
Approximately nine out of ten consumers say they are as
knowledgeable as the salespeople they deal with

23. If cannot find a salesperson
Try to find a salesperson
Keep shopping/browsing
Wait for someone to help me
Buy item I had in mind anyway
Leave the store
Other
§1
§24
§25
§27
§43
§52
Mass
Merchandise
Drugstore
Books/
Magazines/
Media
Clothing/
Fashion
Electronics/
Appliances
A B C D E
n=56 n=53 n=48* n=59 n=73
52 47 48 47 60
39 45 50E 53E 32
27 30 23 25 30
21 26 27 34E 16
29 23 17 24 25
- - - 5 1
If often/sometimes rely on salesperson (89%) …
If cannot find a salesperson (%)
Overall, one in four will leave a store if they cannot find a
salesperson to help them and a similar percentage will
simply buy the item

24. Owning the emotional connection

25. Cracking the code of emotions
While research techniques to measure “emotions” continue to
develop (brain scanning, etc.), Hotspex has invested four years in
developing a comprehensive online measurement approach, which
effectively captures how people “feel” about, and react emotionally
to, brands
• This methodology is based on a comprehensive list of 85 emotions and 182 personalities
• We have proven conclusively across over 34 categories and over 101 brands that, on
average, “soft” drivers account for half of all buying behavior
How people feel
about brands, new
product concepts,
and packages.
The personality that is projected
outwards by brands, new
product concepts, and packages.

26. Defining the emotional regions
ADULT
CHILD
Opposite
Zones Have
Opposing
Relationships
Understanding the emotional regions redefining retail
“LIKE YOU”
RIGID
UND
ES
IR
A
BLE
ARRO
G
A
N
T
UNRELIABLE
DISH
O
N
EST
INCO
M
P
ETENT
BORING
DANGEROUS
ADULT (SERIOUS)
SPEX
(CO
N
SERVATIVE)
CHALLEN
G
IN
G
(M
ALE)
CHILD (FRIENDLY, CHEERFUL)
HOT
(REB
ELLIO
US)
NURTURIN
G
(FEM
ALE)
PASSIVE(INTROVERTED,HOME)
ACTIVE(EXTROVERTED)
SHOWOFF
N
A
U
G
H
TY
AUTHORITARIAN
DEM
A
N
D
ING O
UTD
ATED
ORDINARY
IMPRACTICAL
W
E
A
K
EXCITING
DESIR
A
BLE
CAPABLE
INSPI
RING
TRUSTW
O
RTHY
FAMILIAR
FRIENDLY
NU
TU
R
IN
G
Brown: The
Competent Zone
Includes core emotions of
acceptance and fellowship,
as well as feeling informed
and self-confident
Purple: The Friendly Zone
Is associated with
emotions related to liking
Blue: The Nurturing Zone
Is linked to feelings of
human warmth such as
love, caring, and
compassion
Red: The Fun Zone
Is associated with
emotions such as
enjoyment, amusement,
and desire
Green: The
Trustworthy Zone
Is grounded in emotions
such as trust, loyalty, and
respect
Orange: The Inspiring or
Leadership Zone
Is based on feeling inspired
and optimistic
Grey: The Familiar Zone
Is home to feelings of
satisfaction and gratitude
Yellow: The
Interesting Zone
Is built on the core emotion
of Interest as well as
feelings of amazement and
surprise, and being alive
and energized

27. Emoti – Mass Merchandise (Retail vs Online)

28. Emoti – Drugstore (Retail vs Online)

29. Emoti – Books (Retail vs Online)

30. Emoti – Clothing/Fashion (Retail vs Online)

31. Emoti – Electronics (Retail vs Online)

32. Shift in emotional power
Average core emotional connectionAverage core emotional connection In Store Online
Mass Merchandise
Driven by the emotions of optimism and trust, the emotional connection with online
shopping is stronger than in-store shopping for the mass – merchandise category 46 55
Drugstore
Online shopping is generating a great deal of interest and connection, as well as
optimism, indicating a strong opportunity for growth and development of the online
drugstore category.
41 55
Books & Magazines
Emotional connection with online book shopping is undoubtedly due to Amazon.
However, in-store shopping for books is the high core emotional connection of all
categories due to continued warmth and connection. Optimism is much lower for in-
store than online.
61 67
Clothing & Fashion
In the clothing and fashion category, the gap between online and in-store emotional
connection is relatively narrow. Optimism and a feeling of interest drive down the in-
store emotional response.
51 58
Electronics
In electronics and appliances, the emotions associated with online shopping are much
stronger than for the in-store shopping experience. Pleasure and trust account for the
higher online emotional connection.
46 62
Online clearly has a stronger emotional connection with customers in
the majority of categories

33. 80%
70%
60%
50%
40%
In store
Online
redefining retail
The emotional connection:
In store vs. online

34. Drivers of consumer choice
Stated/ClaimedImportance
TABLESTAKES
The cost of entry into a category,
these attributes are important but
not proven to be a strong driver
of choice.
Claimed to be important, and
proven to significantly influence
choice.
Not
acknowledged
to be very
important, but
proven to
significantly
influence
choice.
Neither claimed nor proven to
be important.
Derived Impact on Positive Emotional Score
KEYDRIVERS
UNIMPORTANT HIDDENDRIVERS
zz
NEGATIVE
DRIVERS
Negative attributes do not
appear in driver maps, but
they are shown in the
Hotspex Heatmaps.
Drivers are
plotted against a
dependent variable
(Emotional score) in
order to calculate a
derived impact score.

35. Amazon.com key drivers
Quick purchase process
Value / price
I am already online
I am sure of my decision
I know it matches my needs
I trust the retailer
I have always gone to this
retailer
Price comparison is easy
Offers special deals or
promotions
Their products are not available
in stores
Nice looking / attractive site
One stop shopping
My friends use the site
Feels comfortable to me
I am confident in the quality I get
They are leaders in the field
Already set up for online
purchasing / have an account
I can do it all from home
So easy – click and buy
I don’t like crowded malls
I can shop anytime I like
Quality is guaranteed – I don’t
need to see it / touch it
Variety /carries the brands I like
Previous experience with the
website
10%
20%
30%
40%
50%
60%
70%
80%
0.150 0.200 0.250 0.300 0.350 0.400 0.450 0.500
StatedImportance(Association%)
Derived Impact
Electronics Category - Amazon.com

36. Brand persona – Electronics
Best Buy (retail)
Amazon.com
(online)
Competent
ReliableSuccessful
Interesting
Cool
Likeable
Easy-Going
Down-to-Earth
37
Like Me
(25)
35
24
27
36
28
32
42
Competent
Reliable
Successful
Interesting
Likeable
Cool
Likeable
Easy-Going
Down-to-Earth
65
66
53
53
64
56
64
67
Like Me
(59)

37. Emotional connections
•In the mass merchandise/household goods sector, Costco is the
satisfaction and emotional leader, closely followed by Target.
Walmart has strong satisfaction levels, but much lower emotional
valence
•Walmart manages to have the highest overall online relationship
score for the category, but it lags the in-store experience and
other categories significantly
•Target scores well with many positive personality attributes, and is
particularly likeable. Its online experience is a bit more polarizing,
with some negativity apparent around reliability

38. Emotional connections
•eBay’s brand personality has many positive attributes but also
some minor negatives around reliability and being “like you”
•While value and price are the main factors for shopping at
Walmart or Target, past experience and trust are more favorable
for Target than Walmart
•In the online segment, eBay challenges the traditional retailers
with much easier price comparison

39. The ideal shopping experience
One of our proprietary tools allows respondents to project their
subjective or deep-rooted feelings and beliefs through an image. For
this project we used a standardized library of 220 contemporary
images. Respondents were asked to select pictures that describe:
Step 1:
Pick the
Finalists
Respondents were asked to select
up to six images as “finalists.”
Step 2:
Pick the
“Winner”
Respondents were then asked to
select the one photo that best
depicts the experience.
Step 3:
Explain
Choice
Finally, respondents were
asked to explain why they
chose this photo.

40. The ideal shopping experience
In Store Online
Mass Merchandise
19% Relaxing
12% Good Deals
20% Relaxing
10% Good Deals
Drugstore
23% Relaxing
17% Good Deals
23% Relaxing
13% Good Deals
Books & Magazines
31% Relaxing
8% Variety and Discovery
23% Relaxing
11% Fast, Simple
Clothing & Fashion
13% Relaxing
10% Exciting
15% Relaxing
9% Good Deals
Electronics
20% Good Deals
14% Relaxing
18% Relaxing
15% Good Deals

41. Accounting for the
experiential factors and the
overall emotional connection
with a retailer, either online
or in store:
•Satisfaction
•Recommendation
potential
•Net positive or negative
emotional reaction to a
retail brand

42. Store indexes – Top 20 redefining retail
75
62
54
54
51
51
50
49
46
45
44
44
43
42
42
40
39
39
38
amazon.com
Costco
apple.com* (Bookstore)
Target
CVS
Kohl's
Macy's
apple.com* (Electronics/Appliances)
ebay.com (Electronics/Appliances)
Walmart
Marshall's
llbean.com*
Walgreens
walgreens.com
walmart.com
Sams Club
TJ Maxx
thegap.com*
ebay.com (Mass Merchandiser)
Amazon.com has the highest overall
relationship index for all retailers. The brand
has unique strength in emotional response
areas like trust and success, and has very
strong satisfaction ratings.
Costco also has strong emotional valence and
high satisfaction ratings, particularly in
comparison to more traditional retailers.

43. Store indexes – Bottom 20 redefining retail
37
37
37
36
36
36
34
33
32
30
30
29
26
25
25
23
16
16
7
7
Barnes & Noble
macys.com
JC Penny
target.com
The Gap*
*Caution: Low base size. Base varies by retailer (total U.S. = 1020)
ebay.com (Bookstore)
Local/independent bookstore*
bestbuy.com
Borders*
jcpenny.com
barnesandnoble.com
Best Buy
drugstore.com*
Radio Shack
cvs.com
landsend.com*
Sears
kmart.com
sears.com
Kmart
Online retail store properties
(macys.com, target.com) tended to
have lower relationship indexes than
the traditional retail store. Target.com
scores much lower than its retail parent,
for example, due to some negative
emotions stemming from reliability
concerns.
Troubled retailers such as Radio Shack,
Sears and Kmart round out the bottom
of the American retailer ranking.

44. Where to next?
Regaining the emotional connection

45. Consumer feedback redefining retail
“Customer service in Canada needs
to be improved. Whoever finally gets
it right stands to make lots of money.”
“Excellent customer service is para-
mount.”
“No matter the product you’re selling,
a customer will only remain loyal if the
customer service is pleasant.”
“Increase the number of cashiers at
the check-out to improve
satisfaction.”
“Have more cashiers on.”
“Make sure that you have enough
cashiers during the day.”
“Have enough check-out reps
working to accommodate line-ups as
they change.”
“Educate your staff to be more
knowledgeable about the merchan-
dise they are selling.”
“You need staff who are really
knowledgeable, really helpful and
not just mouthing polite words.”
“Make sure your staff is both friendly
and knowledgeable about the prod-
ucts and services that they
are selling.”
“Offer more promotions and cou-
pons - will encourage return custom-
ers.”
“Need more promotions to attract
people.”
“How about some more specials and
promotions?”
“You have the selection, but you
should have more sales/specials.”
Knowledgeable staff
More cashiers More promotions/
discounts
Better customer service
Retail
shopping

46. Consumer feedback redefining retail
Online
shopping
“Free shipping to Canada is a must.
If it is worth my while to get it from
the U.S. with free shipping, I'll do it.”
“Lower the shipping and handling
prices to be competitive.”
“I only shop at sites that offer free
shipping.”
“Offer reasonable shipping rates.”
“Make it simple to understand and
navigate for those like my mom and
dad.”
“Keep it simple and uncluttered.”
“Keep the layouts simple and have
prices available on the website.”
“Keep the site simple. Allow for quick
ordering of products.”
“Have a reward program of some
sort, where you can earn points
toward future purchases.”
“Offer some sort of rewards/loyalty
program.”
“Offer more rewards, make it easier
to accumulate. Pay back for loyalty.
“Get a points/loyalty program.”
“Clean up search results and make
purchase options clearer.”
“Improve the search functions so I
can get the short list easier.”
“I wish that the search generators
were not as broad so that I could
search very specific items and not
sift through all the results.”
“Products need to be easy
to search.”
Loyalty programs
Keep it simple Improve search tool
Lower shipping fees

47. Where to from here?
Overall
To effectively compete and regain the emotional connection, retailers
will need:
• Unique items such as private label platforms and added-value
services
• New and exciting store designs that engage customers
• Stronger customer service
• Better loyalty programs
• Easy price comparisons between retail and online pricing
• Free shipping and installation

48. Where to from here?
Mass Merchandise
• While retail leakage is more prominent in the electronics and books
categories, online purchasing of household goods from
Amazon.com is growing
• Most mass merchandisers operate their retail sites independent of
their in-store offering and consumers have concerns over the
relevance of the experience. Consumers want a seamless, problem-
free environment with good prices and some good deals for
occasional excitement

49. Where to from here?
Drugstores
• There seems to be a great deal of emotion associated with online
drugstores, perhaps due to the low emotional connection felt with
traditional U.S. drugstore chains
• Drugstores will need to continue to drive convenience while
shoring up value-added services such as estheticians, out-patient
services, eye care and health advisors

50. Where to from here?
Books and Music
• Amazon is unquestionably the dominant player in books.
iTunes.com and Apple.com may have a challenge in music with the
ease of use associated with Amazon
• While in-shop cafés are commonplace, we wonder about the
potential for book kiosks in cafés to drive demand back to the
online retailer and supplement the calm, relaxing environment
sought after by consumers

51. Where to from here?
Clothing/Fashion
• Having simultaneous attributes of relaxing and exciting are a tall
order for “retail choreography” but excitement brings consumers
into the store, and a relaxing relationship encourages spending
• Deal-driven retailers such as Kohl’s and Marshalls (Winners in
Canada) have strong relationship ratings due to high satisfaction,
despite some concerns over reliability
• Overall, Macy’s seems to maintain a strong relationship base
without consistently compromising on price
• Retail leakage concerns are growing in this category as well, and
low ratings for online brand properties will provide opportunity for
Amazon in this category if not addressed

52. Where to from here?
Electronics
• Amazon is also the dominant player in electronics both in the U.S.
and Canada. Negative perceptions have significant impact on
chains like Best Buy and Future Shop rankings, and seem to force
them to compete on deals with Amazon
• Retailers will need to offer unique items, introduce loyalty
programs, make it easy to compare retail to online pricing, and
offer free shipping and installation
• Importance of private label will rise in this sector to provide
greater differentiation

53. Contact us
Jean-Pierre Lacroix
President, Shikatani Lacroix
416-367-1999 ext. 229
jplacroix@sld.com
Chris Thorne
Vice President, Hotspex
416-487-5439 ext. 256
Chris.Thorne@hotspex.com