In our most recent Merchandising research, retailers tell us that they are hyper-aware that many of the legacy technologies they’ve been using for years are in dire need of a refresh. However, some very interesting things emerge when we look at just how differently the best performers view merchandising technologies in the first place. It is quite staggering, in fact, just how much more value they find in these tools – even the oldest of them – and their ability to help put a relevant product mix in front of the consumer (and at the highest margin possible – Figure). Figure: A Team of MVPs

Source: RSR Research, February 2015

What makes this data all the more compelling is that when compared to the overall response pool, those whose sales are already performing best are the only ones who see the light.Consider the following points as they relate to movement from last year to today:

• The overall response group’s interest in web analytics is falling off the table (39% this year compared with 47% last year). The fact that 59% of Winners see this as a highly valuable technology set should be a serious wakeup call for average and lagging retailers.
• The aggregate response pool’s interest in optimization of assortment against key customer segments has also fallen: from 63% in 2013 to 51% today. Yet Winners’ attentiveness to gathering as much information from web activity as possible is climbing every day. This is no happy accident.
• In fact, of the myriad options we provided, only two have gained favor among the general response pool. The first is optimization of assortment against key customer segments; 53% cited it as having high value last year, compared to 65% today. And still that number trails Winners’ growing interest (72%, pictured above.) The other is markdown optimization (up to 57% among the aggregate from 50% last year). But that statistic absolutely pales in comparison to the 79% of Winners who see Markdown Optimization as a way to maximize any mistakes that invariably occur within their product mix as being vitally important. For Winners, it is the single most valuable tool in their merchandising arsenal.

The long and the short it is that if more merchants don’t follow Winners’ lead – or at least interest in these trends, the gap between the haves and have-nots will only continue to grow, and likely at an accelerated rate. Within the full report, we also look at which technologies retailers – both the best performing and those in trouble – are currently investing in/planning for. We hope you take a chance to read it here.