PUMPING UP P-O-P

As I filled my gas tank this morning, it reminded me of how that point-of-purchase has evolved over the past 25 years. I remember the first time I ever paid at the pump: an AM/PM store in Pittsburgh in the late 1980’s. The common wisdom then was, “Retailers won’t adopt this convenience because they want the shopper in the store.” Ha!

Fast forward to today. Most gas stations are convenience stores and vice versa today. Virtually all of them offer pay-at-the-pump. I infrequently enter a convenience store when I get gas, instead conducting my business at the pump. Quick and easy, I scan my loyalty and credit cards, clean the windshield, replace the gas cap and go. Beyond the price of gas, of course, the attributes I appreciate are: pump clean and in working order, including the receipt printer. Trigger holder so I can clean my windshield while gas dispenses. Newer squeegee with actual windshield wiper fluid (not just water) in the well. Trashcan that’s not overflowing. Sufficient space between pumps so cars can easily park side-by-side. Canopy to keep me out of the weather.

And when I find the attributes I like, I tend to return again and again. And I’ll go to that convenience store when I don’t need gas. The gas pump P-O-P makes a difference.

How about you? How do you choose what gas station you patronize?

AMERICAN RETAIL

One of America’s hallmarks as a society is the vibrant, constantly-evolving retail landscape. Consumer retail spending rings up about two-thirds of our gross domestic product (GDP). Five of the world’s largest retailers (by revenue) are US-based companies (#1 Walmart, #6 Kroger, #7 Home Depot, #8 Costco and #10 Target).

According to the 2007 Economic Census, there were 1,122,703 retail establishments with a total of 14.2 billion square feet of retail space in the US. That’s one store for every 250 or so people and a whopping 46.6 square feet for every man, woman and child in America.

Have we become over-stored? Undoubtedly. Back in 1980, there were 8.5 square feet for every US citizen. Even today, the UK has only 23 square feet of retail space for each of its people; Canada 13 square feet; India two square feet; and Mexico only 1.5 square feet. No wonder we see closing malls, vacant store fronts and wobbly chains. This year alone, we’ve seen 600+ Borders, 400+ Blockbusters, 200+ GameStops, 160 f.y.e stores, 117 Foot Lockers and thousands of mom’n’pop restaurants, drycleaners and cupcake makers close.

In spite of all of this, new stores, restaurants and dress shops open every day in America. We’re a nation in search of new, different and better. And this search drives our economy, stokes our competitive fires and makes us what we are as a nation. In some ways, we are what we buy. At Tusco Display, we thrill to serve this demanding, brutal, creative marketplace.

ON THE MOVE

One hundred years ago, American society started to go mobile as automobiles entered mass production (200,000 units in 1911), roads got paved, and traffic lights were deployed. Fifty years later, the interstate highway system accelerated our mobility and changed the way we perceive and interact with the world.

Today, a new form of mobility dominates. Worldwide, there are 5.1 billion cellphones for 6.8 billion people. There are more cellphones than TVs – or toothbrushes. These and more stats can be found here.

This new mobility impacts at-retail marketing. Quick-response (QR) codes, augmented reality (AR), mobile coupons – redeemed at 10X the rate of traditional coupons – and mobile search increasingly drive in-store behavior. And when people search online while shopping, 70% of those searches result in action within one hour.

Just as cars changed our culture and our buying habits (e.g., Holiday Inn, McDonalds, suburban malls), so too smartphones are changing how we perceive and interact with the world. Understanding and responding to these changes in-store is driving a great deal of marketing creativity today. How are these things impacting product merchandising? Look for those impacts all around you.