fred meyer: the need for e- commerce abdulaziz ibrahim jared allen

Fred Meyer:The Need for E-Commerce

Abdulaziz IbrahimJARED ALLEN

A traditional “brick and mortar” retail store.

FRED MEYER

FRED MEYER CURRENT ONLINE SHOPPING AVAILABILITY

Specialty Grocery OrdersOrder FlowersDigital Photo ServicesFred Meyer Jewelers

FRED MEYER PRICE COMPARISON

View local adGo to the storeNo way to price shop onlineCould call store – very slow and inconvenient

CONVENIENCE OF ONLINE SHOPPINGCompare prices from homeCompare product features, selectionRead customer reviews. Find out whether an item is in-stock Have items shipped directly to home or business

E-COMMERCE GROWTHE-commerce sales reached $100 billion in 2006 Over $225 billion this yearBy 2016 $327 billionBy 2016, 10% of retail sales are e-commerce Growth rate ten percent per year

BENEFITS TO THE SELLER

E-commerce reduces costs for retailers Access to customers 24 hours a day, 7 days a weekReduced environmental footprint

LOYALTY PROGRAMSOnline retailers gain access to customer dataFred Meyer’s loyalty program (Fred Meyer Rewards) could track additional information about customer purchases and encourage future purchasesLearn about customer shopping habitsPersonalized offers or product recommendations

CONCLUSIONFred Meyer is missing potential salesCompetitors (Target, Wal-Mart) offer e-commerceCustomer perception of Fred Meyer is lower because it does not offer e-commerceFred Meyer should invest in e-commerce so that it can remain competitive and grow profits

ReferencesJefferson, Jamie. “Benefits of Online Shopping.” Ezine Articles. Retrieved from http://ezinearticles.com/?Benefits-of-Online-Shopping&id=300201Rueter, Thad. “E-Retail Spending to Increase 62% by 2016.” Internet Retailer. Feb. 27, 2012. Retrieved from http://www.internetretailer.com/2012/02/27/e-retail-spending-increase-45-2016“Shop Online.” Fred Meyer. Retrieved from http://www.fredmeyer.com/shop_online/pages/default.aspx