Business and Strategy

Going Mobile

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Trying to keep up with retailers’ forays into mobile retailing is akin to drinking from a fire hose. In the last few months alone we’ve seen some significant announcements about current initiatives and plans for the future. Here’s what’s happening at a handful of the merchants STORES expects to power mobile retailing in the months ahead.

Best Buy. Seeking to connect the physical and digital retail experiences, Best Buy is experimenting with a location-based smartphone app from start-up Shopkick. The app can detect when shoppers are in or near Best Buy stores, thus giving the retailer the chance to offer on-the-spot and targeted rewards and deals. The experiment is set for 257 U.S. stores; execs plan to test a series of promotions to determine how much consumers value the experience. On the social front, Best Buy created @Twelpforce, a Twitter-based account where users can pose tech questions and receive answers in real time.

Chico’s. The website for each of Chico’s brands — Chico’s, White House | Black Market and Soma Intimates — have been optimized for use with any mobile phone, including iPhone, Android and BlackBerry. Chico’s aficionados can easily find product information, search nearby store locations, make purchases and even check gift card balances; in-store shoppers can also use the mobile website to locate and/or buy items or sizes not available at that location.

eBay. The e-commerce giant is also vying for the title of world’s largest mobile retailer. With several iPhone apps already available, eBay added iPad and Android apps earlier this year. Then, in June, eBay acquired RedLaser, a barcode scanning app for the iPhone. Boasting more than 2 million downloads, the app is among the most popular because it allows shoppers to compare prices on the e-tailer’s extensive product database. Expect that app’s popularity to soar: Originally $1.99, RedLaser is a free app.

Lilly Pulitzer. The apparel retailer with the Palm Beach lifestyle aesthetic launched a mobile website compatible with all web-enabled mobile phones, including the iPhone and Android. It is working under the premise that in about five years, “a majority of their [business] transactions will happen on mobile devices,” says David Sikora, president and CEO of Digby, which designed the retailer’s mobile web store.

Macy’s. Macy’s launched mobile websites for its Macy’s and Bloomingdale’s brands this summer. Both provide shoppers with the ability to search for and purchase products, redeem special online sales offers and determine product availability at nearby stores. Macy’s execs say these are the first mobile-optimized websites to be launched by a major high-end retailer in the United States.

Pizza Hut. The chain’s iPhone app was so successful that it plans to introduce Android and iPad apps. How successful was it? Pizza Hut’s iPhone app will soon surpass 2 million downloads, and the company says it has cleared $1 million in related sales since the app debuted earlier this year.

Company executives predict half of all Pizza Hut orders will be made via mobile apps in the not too distant future, and word has it that more consumers are purchasing pizza via a mobile device than by ordering online. The company is also wading in the location-based scene with a new promotion that offers users a chance to win an order of breadsticks by using Foursquare.

Starbucks. The chain’s new Blackberry application lets consumers purchase items using its mobile payment option in Target Starbucks locations and 16 trial stores in Seattle and Silicon Valley. The Starbucks Card Mobile Application allows consumers to set up an account, check their balance, reload their account using a credit card and pay for in-store purchases with the mobile payment option.

Target. The Minneapolis-based retailer began offering mobile scanning technology at checkout earlier this year that allows shoppers to scan gift cards and coupon codes directly from their mobile devices. Shortly thereafter, it provided shoppers with the ability to manage registries and create lists using their smartphone. With Target’s iPhone app, consumers can search for items at other stores and access ratings and reviews. The MyTarget Weekly ads have also gone mobile, putting promotions in the palms of shoppers’ hands.

Tesco. Breaking from the pack, the U.K. supermarket giant is launching its first transactional mobile app on Nokia’s Ovi Store rather than via the iPhone. Nick Lansley, head of research and development at Tesco.com, says the Nokia app is a better fit with Tesco’s customer base: It allows Tesco.com users to search for products and add them to their online basket, and is synchronized with Tesco.com customers’ online shopping accounts.

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