Majority of retailers embrace social media: CBRE

Around 88% of retailers now use social media tools such as Facebook or Twitter to interact with their customers, according to a new study by CBRE.

The study, carried out among 50 leading international retailers, found that as a direct result of their digital strategies around 87% feel they will see an increase in the overall revenue of their business in 2014. The majority (80%) expect an increase in foot traffic in stores.

A significant amount of retailers (40%) anticipate a need for more stores in the future and expect to increase store openings, the study revealed.

Digital technology has become an integral part of retailers’ strategies, CBRE said. Some 85% of those surveyed now have a dedicated resource to run their digital strategies and the vast majority (87%) operate a transactional website.

Digital technology is also being used by retailers to drive customers to their stores via social media and the use of smart phone apps and geo-localisation. Most retailers are seeking to create larger experiential stores featuring digital tools such as iPads for ordering online and digital screens to show the full range of goods.

Neville Moss, head of EMEA retail research at CBRE, commented: ‘In the digital age, it is more important than ever that retailers understand their brand and the way it engages with consumers. Advances in technology provide an increasing range of tools to do this, and consequently those retailers that do embrace digital technology will have the best chance of success. This is true throughout the retail spectrum, from food to fashion and from luxury to value.’

He continued: ‘Successful digital strategies clearly require investment; not only the cost of technology, but also for hiring and training staff to implement this, and the reorganisation of the business model in line with this. This in-store investment in new technologies is essential in order to "stay ahead" of the competition.’