With another $125 million in its pocket, in-store analytics company RetailNext is looking to expand its reach and to continue international growth, says CMO Marc Dietz.
The funding, which was secured in a fifth round led by Activant Capital Group, more than doubled the value of the San Jose company …
Acting like a Google Analytics for brick-and-mortar retailers, RetailNext Inc. has grown quickly in recent years to log a $50 million annual revenue run rate at the end of 2014.
Its retail customers, such as Bloomingdale’s and American Apparel, are hungry for data their digital counterparts take for granted, like when certain shoppers visit and where they spend the most time once they are in a store …
What a way to get attention – RetailNext is announcing a $125 million funding round that will if nothing else, help it fuel some significant growth.
RetailNext is an analytics vendor. The company has a platform that helps retailers collect and correlate data from a myriad of different data sources. The company collects behavioral data …
With the rise of online retail companies, brick-and-mortar stores were effected by the shift of commerce. The ease and simplicity of online shopping has forced physical stores to compete on another level.
However, RetailNext was created to save the day.
New York-based Nielsen and RetailNext, San Jose, Calif., announced a strategic alliance that will bring RetailNext’s proprietary technology for in-store analytics to Nielsen’s retail client base, including grocery, mass, drug, convenience and dollar stores — and more. Being RetailNext’s preferred go-to market provider in Nielsen’s retail channels will extend Nielsen’s commitment to bring innovative and performance-driven capabilities to its retail clients. The partnership also allows RetailNext to expand in important consumer-packaged-good (CPG) retail channels.
Analysis from RetailNext shows that between Monday, Jan. 26 and Wednesday, Jan. 28, 2015, store traffic at Northeast retailers dropped 35.6% from the same three-day period the prior year. In addition, sales dropped 40.8% year-over-year, while the conversion rate fell 1.1 percentage points and sales per shopper fell 9.7%.
Overall retail sales had grown by 3.1% in 2013′s holiday season (November and December 2013), and net apparel and accessories sales had increased by 2.3%. For 2014, analytics firm Retail Next has estimated overall retail sales to have grown 3.5% to 4% during November and December. Since apparel market growth was 80 basis points slower than overall retail sales growth in the 2013 holiday season, we assume that apparel sales would have lagged overall industry growth by 50 basis points during 2014 holidays, given that growth was strong in November.
In another sign of disappointing Christmas sales for brick-and-mortar retailers, RetailNext said foot traffic dropped 8.3 percent during November and December versus a year ago at the specialty stores and large retailers it tracks. However, customers who did visit stores spent slightly more on average than a year earlier. “The online promotions that came out early in November really took a lot out of the brick-and-mortar business as they captured the shopper very early this year,” said Shelley Kohan, vice president of retail consulting at RetailNext.
On-line shopping was big this year. According to comScore, reported holiday season commerce from desktop computers hit $48.3 billion in November and December, a 15 percent increase over last year, with the most recent week showing an 18 percent growth in the last full week before Christmas. Shelley Kohan, vice president of retail consulting for the RetailNext, said weather, convenience, and changing shopping trends have led shoppers to the web. “As a result, there are fewer visits to stores,” Kohan said. “However, when those shoppers do get to their favorite retail stores, they are spending more.”
Analytics firm RetailNext, which tracks specialty stores and large footprint retailers, said sales dropped 8.9 percent over the weekend versus a year ago, and store traffic dipped 10.2 percent. However, customers who did hit the stores spent more. Specialty stores in the United States include chains like Best Buy Co Inc <bby.n> and large footprint retailers include Wal-Mart Stores Inc <wmt.n> and Target.
“Even with this drop in growth, Super Saturday was still better compared to Black Friday,” said Shelley Kohan, vice president of retail consulting at RetailNext. “It generated a tad more in terms of sales on slightly less traffic.”