BUSINESS - PetSmart's New Website Boosts E-Commerce

PetSmart Inc. has launched an improved, mobile friendly website with new features including same-day delivery and subscription services.

Many see these improvements in e-commerce as a direct step to compete with companies like Amazon, which has been dominating the US online pet food market.

Forrester Research has predicted the fastest online category growth will continue to come from the pet category, which prompts brick and mortar stores to step up their online retail game.

The new site includes features such as one-page checkout and new tailored delivery options like recurring subscription-based shipping, scheduled delivery and same-day delivery.

All the improvements are aimed at letting pet parents shop how, when and where they wish, which demonstrates a customer-centric approach that should benefit the company.

“Our omnichannel strategy is aimed at giving pet parents options tailored to their needs and desires. We look forward to seeing their response to the new site with its new user experience and commerce-meets-content approach,” Eran Cohen, chief customer experience officer, PetSmart said in a release.

The new shipping options are provided by last-mile logistics provider, Deliv, a company that powers same-day delivery for over 4,000 businesses.

By mid November, PetSmart customers located in 17 of Deliv's markets can shop on PetSmart.com and select scheduled delivery on the product page for anything from 50 pound bags of dog food to bulky containers of cat litter or a fun pet fashion accessory like a hoodie, collar or leash, as well as seasonal holiday items.

A pet bloggers role in retail

As the World Wide Web plays a rapidly increasing role in retail, companies are learning the benefits of social media, discussion forums and blogging when it comes to moving their product and keeping consumers engaged. 

The APPA National Pet Owner Survey for 2011-2012 revealed the use of Internet has more than doubled as a pet care information provider in the past 10 years. Recently, Amanda LeGaux, social media specialist at Trone Brand Energy suggested the pet blogosphere could be an untapped goldmine in the digital landscape. 

"The pet blogging community has proven to be a valuable platform for companies to both engage with and learn from pet loving consumers. And it is an essential driver of online sales and product recommendations," she said. 

"Retailers have the opportunity to harness the power that pet blogger wield in the pet owners' purchase consideration journey to better promote and sell products online while garnering key purchasing insights from their target consumer." 

A study conducted by Trone Brand Energy in 2012 reveals that 20% of pet bloggers are considered highly influential and have a monthly readership of at least 10,000 readers. Influencers report dealing with at least six or more pet care brands from a marketing perspective. 

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Is Your Digital Media on Track? Comscore Helps You Compare!

What can you learn from the Comscore 2013 Canada Digital Future in Focus report for your digital media programs?

• Without an active digital program, you may not be accessing the engaged Canadian who is now spending more than 41 hours per month online. Canada ranks 1st in terms of monthly pages and visits per visitor and second around the globe for digital engagement.
• Without an entertaining online video component you may be falling behind in the digital ecosystem as long-form viewing and premium programming migrates to online platforms. Canadians rank 2nd worldwide in terms of monthly hours of video viewing (25) and number of videos per viewer (291). The Entertainment category saw the largest growth in number of videos viewed versus year ago.
• The digital ad market is healthy and growing in Canada, with 724 billion display ad impressions in 2012, up 17 percent year-over-year. Social Media, Entertainment and Portal sites continue to account for the highest share of impressions. Are you working with these sites in your industry to improve traffic and gather up your clients?
• The rapid adoption of internet-enabled devices is contributing to a more fragmented digital media landscape. Smartphone subscribers grew by 17 percent in 2012, with Google Android now accounting for 40 percent of the market. Subscribers watching video on their mobile phones has increased 21 points in the last year, while search is the fastest-growing mobile content category. When your constituents look for you on their mobile devices are you optimized so they find you?
• Social Media players are increasing their visitor base and engagement, while Facebook maintains its strong lead in the category. There are several rising stars to watch in 2013 – Twitter, LinkedIn, Tumblr, Pinterest and Instagram are all seeing strong visitor growth rates. Have you engaged by providing dedicated resources to exploit this category?
• Major industry verticals are experiencing growth in digital channels. Retail e-commerce reached $22.3 billion dollars in Canada in 2012, up 10 percent versus year ago. Banking and Automotive content consumption and digital advertising are also experiencing gains across both desktop and mobile channels. Do have am online competitive advantage in your category? Have you experienced similar growth? 

Comscore Analytics tools may be useful for tuning up your digital media programs.

Download the Report

Best Buy closures force retail reconsiderations

Retailers forced to re-evaluate shopping experience after Best Buy announces nation-wide store closures.

Last March Best Buy announced it would close 50 big box stores in the US.  In the past few days the company has closed 15 Best Buy/Future Shop stores and laid off 900 staff positions in Canada. In both cases Amazon was sited as a major competitor, a fast changing market (computer and television sales to tablet and smartphone sales) and 'Showcasing' (visiting retailers to examine product then purchasing online) were sited as activities killing Best Buy revenues.

InfoStream asked PetLynx Market Services and Intelligence Analysts to comment on this activity for the retail sector of the companion animal industry. They have provided several observations that may be useful:

• Consumers are quickly moving in large numbers toward online providers when they trust the offering and enjoy better pricing.
• Competing head-to-head with an online provider doesn't work (they have lower cost structures) so bricks and mortar retailers need to check the products available to consumers in the market and move away from those not competitive.
• Move toward providing/incorporating services which can't be duplicated online. PetSmart showed this to be a successful strategy. It may involve collaborating with Ad hoc service providers in the community to recast the retail location as the center for pet families and companion animals.
• Be present online to understand what consumers are being offered and the effect online offerings may have on the bricks and mortar retail presence in the community. 
• Start lifetime conversations with consumers:
• Discover what they buy online
• Discover what they enjoy most about visiting a bricks and mortar retailer
• Focus on providing an experience pet families desire
• Develop staff that are consumer advocates with authority to remove barriers in the relationships
• Get involved with other thought leaders who face similar issues in your region.

Ten years from now we will all look back on these days and we will see clearly what Best Buy and others did not see soon enough. Bob Johansen, author of 'Leaders Make the Future' would argue that with the correct lens, leaders can see these changes coming and can make a future of their own choosing.

The Future of the Specialty Pet Retailer

Some feel online retailers pose a threat to the future of the traditional brick-and-mortar vendors. And while this sector of the companion animal industry may have eluded serious injury in the past, many are starting to feel the pressure as major e-retailers like Amazon.com break into the pet business. 

A recent article on PetBusiness.com describes the threats posed by large e-commerce sites like Amazon and highlights the strategies specialty retailers can follow to keep 'a full arsenal' and fight back. 

So how does the specialty retailer live and even prosper in the shadow of these giant organizations? Some experts say pet retailers are far from defenseless. The bottom line is that brick-and-mortar retailers need to do the things Amazon can't, and sell products that Amazon doesn't.  

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US Vet Offers Online Pet Store and Incentive Program

Georgia's Acres Mill Veterinary Clinic announced they will now offer pet owners the option to shop online for pets.

The online store features competitive pricing, manufacturers' guarantees, and free doses on selected purchases. Pet owners can also earn "VetBucks," the vet clinic's online rewards program. Every $10 purchase earns one "VetBuck." Pet owners who refer new clients will also receive $10 in "VetBucks." These can be used at the clinic to pay for pet services.

In order to access the online store through the Pet Portal, pet owners must first register and request a secure login from the clinic. Once pet owners are logged in to the store, they can browse a variety of different specialty pet care products.

Some products include:

• Special dietary foods
• Nutritional supplements
• Preventative medications for heartworms, fleas and ticks
• Older pet products such as hip and joint supplements

The online store is part of the vet hospital's commitment to offering high quality pet services, including pet vaccinations, wellness exams and surgical care.

Learn More about Acres Mill Vet Clinic Services

Facebook Stores - Facts and Failures

Does the Retail Model Deliver?

A report by Ashley Lutz, which appeared yesterday on Bloomberg News suggests the Facebook retail model may not deliver.

Last April, Gamestop Corp. (GME) opened a store on Facebook to generate sales among the 3.5 Million-plus customers who’d declared themselves “fans” of the video game retailer. Six months later, the store was quietly shuttered.

Facebook, which this month filed for an initial public offering, has sought to be a top shopping destination for its 845 million members. The stores’ quick failure shows that the Menlo Park, California-based social network doesn't drive commerce and casts doubt on its value for retailers, said Sucharita Mulpuru, an analyst at Forrester Research in Cambridge, Massachusetts.

“There was a lot of anticipation that Facebook would turn into a new destination, a store, a place where people would shop,” Mulpuru said in a telephone interview. “But it was like trying to sell stuff to people while they’re hanging out with their friends at the bar.”

A year ago, investors hailed so-called F-commerce as the next big thing, speculating that the company had potential to threaten Amazon.com Inc. (AMZN) and PayPal Inc. Facebook is the most- visited website in the world.

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