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Apps can help shoppers find the deals

Sunday, November 6, 2011
(Updated 6:52 am)

People are shopping for iPhones this year. Now, iPhones are shopping for people.

There’s an app for that.

Companies that own some of this region’s largest centers are rolling out free smartphone apps to guide customers to stores, help them find products and even unlock bargains that they wouldn’t find otherwise.

It’s a little holiday magic that developers like CBL & Associates, which owns Greensboro’s Friendly Center, and Tanger Factory Outlet Centers, which owns Tanger Outlets in Mebane, hope will drive shoppers to the stores that pay their rent.

Jim Ward, senior director of brand development at CBL, said, “We know consumers are hungry for this type of information.”

CBL launched its app in September and calls it mallMerlin, and it’s available only for iPhones right now.

Tanger Factory Outlet Centers, a major center owner that’s based in Greensboro, also has rolled out an app earlier this year for Android and iPhone called TangerOutlets. It offers a long list of discounts and other deals for its stores at the TangerOutlets in Mebane and outlet centers throughout the country. Retailers include Tommy Hilfiger, Talbots, Bass and Yankee Candle.

Deals on the app include an extra 30 percent off outerwear and handbags through Nov. 7 at Wilsons Leather or 60 percent off all sweaters at the Gap Factory Store through today.

One advantage of apps is that they appeal to younger shoppers who consider smartphones essential to their lives.

Ward said they “are so accustomed to this technology — this is something that we couldn’t ignore.”

Although only a few stores at Friendly Center are now promoting themselves through coupons on the app — they include Gap and OshKosh B’Gosh — Ward said 63 retailers throughout the CBL chain are interested in using it.

And his staff will be working to sign up more as Black Friday approaches.

“We had to get critical mass with content before we launched. We’re going to be engaging with retailers with face-to face meetings, with their social marketing folks.”

Apps could become essential in driving shoppers to what they care most about this season: bargains.

While apps from CBL and Tanger both offer overviews and directions to centers, the fact that they offer app-only discounts for specific stores makes them essential to driving foot traffic.

Retail authority Britt Beemer, chairman of America’s Research Group, said, “There’s an awful lot of consumers out there that are going to be very careful about how much money they spend, and they’re going to be much, much, much more sale conscious.”

“What’s going to happen is you’re going to see a lot of cheaper flat panel TVs, cheaper computers. The people are going to spend the money where they can get the deals.”

In addition to Friendly Center, CBL owns Alamance Crossing in Mebane and Hanes Mall in Winston-Salem.

CBL’s mallMerlin is a slick app that immerses users into each participating shopping center, orienting shoppers while leading them to bargains. When more stores join, it could become the ultimate digital scavenger hunt for CBL.

Slicker Retail designed the app for CBL.

Ward said in an email that CBL wants mallMerlin “to deliver one App wherein consumers can access their favorite stores, view their merchandise, shop their deals, cross-shop multiple retailers and receive customized promotions.”

Many shoppers still face the mall experience of standing at a sign board, puzzling over lists of jeans dealers, jewelry shops and shoe shops while trying to find them on a grid.

MallMerlin can:

• Search for any category such as “jeans” or “jewelry” and come up with a list of retailers in that property and offer directions.

• Stream new information and update content as the shopper walks into the mall or shipping center.

• Offer coupons to shoppers as they stroll through the mall.

Ward said: “Think Groupon but on a much larger scale — instead of one coupon or ad a day, you could have 200 within that property.”

Innovations are essential this year, Beemer said.

“Retailers are now scared because some believe they’re in a second recession,” Beemer said. “And the second recession is hitting them in the biggest shopping season of the year.”

Despite the challenging environment, revenue in November and December is expected to be up about 3 percent. The increase — below last year’s 5.2 percent spike — would beat the 2.6 percent average gain over the last 10 years.

Tanger, a public company, has reported so far this year that its sales have been good in the stores it leases across the country.
Comparable sales for all properties consolidated increased by 3.5 percent for the rolling 12 months ending Sept. 30, 2011.

But Americans are expected to do more online comparison shopping and spend less time in stores.

ShopperTrak, a Chicago research firm that tracks how many customers visit more than 25,000 stores, expects foot traffic to drop 2.2 percent during the holiday season compared with a year ago, the Associated Press reported. So far this year, consumers have gone to an average of three stores during a mall trip, down from an average of five stores in 2006.

Beemer agrees that apps are worth a try to draw consumers into stores.

“Anything that speaks to a younger consumer who’s technology-driven is a plus because you want those consumers to come into your stores,” Beemer said.

“There’s 45 percent less shopping in retail stores today than there was in 2001,” Ward said. “Anything you can do to get people to walk into your front door is crucial. That’s one reason why Black Friday is important. If somebody comes into your store Black Friday, there’s a 60 percent chance they’ll come back to your store before Christmas. If not, only 23 percent.”

Contact Richard M. Barron at 373-7371 or richard.barron@news-record.com

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