Retail

Giving Health And Beauty Merchants A POS Makeover

Consumers have thousands of health and beauty brands to choose from, and that pool has only grown larger as the global economy expands. To keep up with the competition, merchants recognize the need to innovate both online and in their physical stores.

What’s more, 61 percent of health and beauty merchants stated that “they would not survive” without innovation, according to the latest version of the Retail Innovation Readiness Index. However, only about 35 percent of merchants say they’re prepared for it.

To gear up for innovation, many are turning to smart POS systems and other technologies to enhance the in-store experience, and deploying consumer-facing applications and tools for online.

For merchants across three distinct categories of health and beauty, nearly 62 percent of merchants said customer loyalty was the reason they were innovating. However, merchants need to compete for the skilled talent and the resources needed to bolster innovation, which can leave some straggling behind their competition.

In this edition of the Retail Innovation Readiness Index, an AEVI collaboration, we gauge 18 essential factors that make or break health and beauty consumers’ shopping experience, and measure how prepared merchants are to innovate and able to retain customer loyalty. 

Key Takeaways from the Index

  • 61.7 percent of merchants said customer loyalty was their top reason for innovating
  • 44 percent of merchants are very interested in smart POS systems, although many have yet to implement them
  • Only 37.6 percent of merchants in health and beauty have a website, merchants report

About the Tracker

The Retail Innovation Readiness Index, powered by AEVI, aims to offer a firsthand account of what drives retailers to invest in or forego certain innovations. PYMNTS surveyed more than 600 retailers across three different sectors to gauge innovation readiness.

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NEW PYMNTS DATA: HOW WE SHOP – SEPTEMBER 2020 

The How We Shop Report, a PYMNTS collaboration with PayPal, aims to understand how consumers of all ages and incomes are shifting to shopping and paying online in the midst of the COVID-19 pandemic. Our research builds on a series of studies conducted since March, surveying more than 16,000 consumers on how their shopping habits and payments preferences are changing as the crisis continues. This report focuses on our latest survey of 2,163 respondents and examines how their increased appetite for online commerce and digital touchless methods, such as QR codes, contactless cards and digital wallets, is poised to shape the post-pandemic economy.

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