Report: Retail stores missing opportunities without digital signage

from Retail Customer Experience - Bill Yackey - August 20th, 2009

Stores aren't using enough digital signage, or signage in general, to promote the "back to school season" according to an article from the Cincinnati Business Courier. The article says that even though digital signage is taking off in hospitals, universities and major retailers like Wal-Mart and Target, the department stores and smaller retailers have been slower to adoption. And by doing so, are missing out on opportunities.

The article was based on a report from Retail Systems Research that surveyed 88 retailers and manufacturers. Results indicated that they needed "to act more cooperatively in planning and executing in-store promotions, including the funding of new technologies like in-store video and mobile coupons."

The biggest reason for lack of adoption seems to be the economy's impact. The fledging retail industry doesn't have the capital to invest in high-end communications technology at the moment, despite the potential positive impact it may have on sales.

Macy's Jim Sluzewski was quoted as saying ""It's something that we've been studying for years. It is very capital-intensive and as you know, our capital spending has been pared back."

Macy's sales have been down 9.6 percent in 2009, and its expeditors have been cut in half.

"There's only a handful of retailers who have fully embraced it," said Bill Collins, principal of DecisionPoint Media Insights, an Oakley company that specializes in consumer research. "You have to buy the software, service, installation, screens, etc."