Stores tackle physical and virtual realities
JC Penney, the mid-price US department store chain, cut back on expenses last year, as the recession hit its core middle-class shoppers.
But it did not stop spending on everything.
“We invested heavily in our digital initiatives,” Mike Ullman, chief executive, told investors recently.
“During the downturn, under the covers, there was a lot of heavy investment in building muscle to make sure we got a headstart in this.”
JC Penney, with more than 1,000 stores, is at the leading edge of digital retailing. In February, for example, it held its monthly board meeting at Facebook’s headquarters in California, to give its board members a crash course in the potential of social networking.
Elsewhere, Target, the US discount retailer, is preparing to launch a fully independent digital platform by late 2011, ending its dependence on Amazon, the online marketplace which currently runs its website. Walmart, the world’s largest retailer, is accelerating work on a new global e-commerce platform. Gap, the clothing retailer, is preparing to launch e-commerce businesses in western Europe, Canada and China.
In part, the enthusiasm reflects the lure of online sales growth – which continues to outstrip conventional sales – at a time when few retailers are investing in new store growth.
Traditional retailer presents a new image on Facebook
Belk, a family-owned US retailer founded in 1888, has acquired more than 40,000 fans since it launched its new Facebook page last month, writes Jonathan Birchall in New York.
The move, by a traditional retailer with 300 stores across 16 southern states, reflects the extent to which US stores have changed their approach to the internet.