Retailers Beware! The Internet is stealing your customers… Or, so the perception was in the not too distant past. Today, many retailers are making the Internet work for them, bringing more customers into the store.

In a recent report released by the Dieringer Research Group it was stated that consumers spent $137.6 billion on goods and services purchased offline after first seeking information online. This compares to $93.1 billion spent on goods and services online.

Some companies are getting creative and using programs like REI’s in-store pickup program. SEW first reported (SEW 0326) the launch of the new program, which allows customers to order via the REI website, and pick up their items at any REI Store.

The company has been impressed with the success of the program, reporting that 38% of all REI-outlet.com, and 16% of all REI.com orders come through the program. Even more surprising is the fact that more than 30% of customers that pick up Internet orders make additional purchases at the store, which now represent one percent of REI’s total store sales.

“Far from the concern of the web cannibalizing stores, we are using the Internet to measurably increase store sales while also lifting Internet sales”, said Joan Broughton, REI’s VP of Multi-Channel Programs.

REI has been seeing strong sales across the board, with a 10% increase over last year in their physical retail stores, and an 18% increase at REI.com, while REI-Outlet.com posted a 50% increase over last year.

The Dieringer Research Group also found that on-line content could not only improve customer flow, but also influence the perception of your brand. Fully 45% of all online adults, and 25% of all U.S. consumers, say that their brand opinions have changed as a result of the company’s on-line presence.

“This data clearly contradicts those who argue that the Internet does not seriously affect brand perceptions,” said Pam Renick, executive vice president of The Dieringer Research Group. “We see overwhelming evidence that online content not only impacts brands but also drives traffic both to retail stores and to financial service branches and insurance agent offices.”

The Finish Line is another company taking advantage of its Web presence. Every FINL customer has access to inventory from any store at any time through its “We Got It” program that links all stores, the Internet and the D.C. together as one platform. An Internet consumer in Vermont may get delivery from a store in L.A. that has the right style/size/color.


>>> Not to sound like a broken record, but who owns the consumer now after so many industry retailers gave their Internet business away to a third party…