E-commerce on the front foot at DSW and Shoe Carnival
- Summary:
- Shopping for shoes online isn't a big part of my e-commerce experience, but I may be in the minority soon if the experiences of DWS and Shoe Carnival are anything to go by.
I might yet be in a minority though if the experiences of a couple of US shoe shop chains is anything to go by.
At DWS, CEO Roger Rawlins boasts:
In the last three years alone we have doubled the level of digitally-impacted sales. We continue to see growth in digital demand that outpaced the industry. We continue transforming our brick and mortar locations into a powerful digitally-enabled warehouse network.
That momentum is driving force behind DSW’s decision to purchase San Diego headquartered e-commerce company, Ebuys for $62.5 million in cash. Founded in 2003, Ebuys operates ShoeMetro and Apparel Save, two online-only brands offering customers deeply marked-down prices on branded footwear.
DSW operates 469 retail stores primarily in the US, but the Ebuys purchases extends its online footprint internationally without the need to invest in bricks-and-mortar presence in overseas markets. But that bricks-and-mortar real estate serves a valuable purpose in the domestic market with 40% of digital orders being fulfilled from them, as opposed to specific warehouses.
The warehouses though do play a vital role and are now seen as digital assets. Rawlins explains:
One of the things that we continually talk about is, we are looking at our business as a digital business and with the digital business you have to place warehouses close to your consumer and with our 500 warehouses we have today, we’re within 20 minutes of 70% of the US population. So when we’re looking to build out a new warehouse we’re trying to figure out, how can we get closer to that customer, so that someday we can meet that demand of the customer of delivery within whatever short period of time we want to deliver upon.
That’s the lens we are using in making these decisions. We also are testing a lot of new fixturing that we think dramatically changes the interior of our warehouses and the customer experience we can create, but also how many units we could place in a warehouse that is closer to the consumers. So I think there is some really cool things and the opportunities we have in our warehouse network.
It’s all about approaching the business from a digital-first perspective, he adds:
I think what's important is, this isn't a dramatic shift in what we are buying, this is a change in mindset to think about all of the brands all the products that we have across our network of warehouses and fulfilment centers. Across our entire enterprise there was the right inventory in our buildings, they might not have been placed in the right locations.
So if we approach it differently with a digital mindset and say, okay, we've got to these brands, these price points, there's kind of architecture closer to the consumer in those markets. You would take that product out of the fulfillment center in Columbus, Ohio and put it into a store that's closer to that consumer in New York City, or LA or wherever it might be. So again it’s not a dramatic shift in how we're buying or what we're buying, it's putting it in the right places is how I would describe it.
Meanwhile the online consumer experience is attracting investment and upgrades, adds Rawlins with the redesign of the main dsw.com website:
Customers will find a modernized, digital experience that seamlessly integrate their rewards information and preferences into this new mobile oriented and responsive site.
As we continue to evolve our customer experience, we’re bringing our immersive digital environment to life in our customer facing warehouses. We’ve partnered with this for to develop our proprietary technology that will give our associates all the data they need at their fingertips to run our stores and serve our customers. We look forward to introducing this new platform soon.
Loyalty
Meanwhile at Shoe Carnival, CEO Cliff Sifford is looking to digital tech to enhance the company’s long-standing Shoe Perks rewards and loyalty scheme:
We have done a great job over the past four years of getting people to sign up for Shoe Perks, what we have not done a good job of is reengaging with those customers that may have dropped off or been inactive. So that is a focus of ours, as we move through 2017, just to re-engage with any of those customers that may not be as active as we want them to be.
What’s important here is to understand the customer better, he explains, and that means making better use of exploiting the data that the firm has at its disposal:
We recognize that we have a wealth of data out there, from not only from our Shoe Perks members, but from the e-commerce site as well and our plan this year is to dig into that wealth of data. Looking for customers that haven't yet signed up for Shoe Perks,that’s how we expect to grow that program this year, not only in our store base, but in our brick-and-mortar base and online [and] with the amount of data that we have throughout all our touch points.
He adds:
While we remain committed to the acquisition of new members, we believe identifying our high valued customers how they shop and how best to retain them will deliver increased sales and better margins over the longer term.
Beyond this, digital enhancements to the customer’s experience are on the way, including allowing buyers the option of singning up the Shoe Perks through SMS:
This allows us to send offers and Shoe Perks related information directly to their mobile devices.
The firm has also introduced Buy Online, Pick up In Store and Buy Online, Ship to Store intitiatives. These have been well-received, says Sifford, and customer traction has been higher-than-anticipated.
Next up is mobile, he says:
We look forward to our next digital sales enhancement strategies, including our new mobile app which we'll launch in the next few months. A new and improved digital store front, that'll allow us the opportunity to give our online shoppers the same surprise and delight they experience when shopping at Shoe Carnival brick-and-mortar store and the development of vendor-drop-ship. Vendor-drop-ship will allow us to expand our assortment with key brands without the risks of inventory ownership.
Overall, while Shoe Carnival is clearly not as digitally-enabled as DWS as yet, the direction of travel is clear. Sifford confirms:
Our team has done an excellent job with our multi-channel strategy as consumers shopping habit continue to evolve. It has been a priority for us to enhance our digital store experience over the past few years.
My take
I’m still not sure this is for me, but if the shoe fits as the saying goes…