Shopping Centers Today -> August 2002
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ONLINE PIZZA
Pizzerias are increasingly offering their customers the chance to order
online. This year Papa John’s began taking orders over
the Internet from consumers across the United States, while
Domino’s, Donatos Pizzeria, Pizza Hut and other chains
are providing the service in some markets. About 75 percent
of Papa John’s online orders come from repeat customers,
who like seeing the entire menu online and being able to order
at their own pace, the company said. Upon placing an order,
a Papa John’s customer receives an e-mailed confirmation
notice and an estimated delivery time.
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CYBERVILLAGE
The 300 citizens of Oberhambach, Germany, a cattle farming community,
no longer have a store. And going shopping in the nearby town is
not easy for those without cars: The bus comes only three times
a week, and a mobile bank visits just once a week. So, reports Deutsche
Presse-Agentur, the state government and a private sponsor have
joined together to offer each villager a computer and printer at
a greatly reduced price to allow them to cybershop. Ninety-nine
percent of the population has accepted, and a team of 30 “PC
scouts” has been helping elderly citizens acquire computer
skills.
AMAZON ADDS MENUS TO THE MENU
Amazon.com, which has steadily broadened its product offerings over
the years
(see story, AMAZON
TO ADD APPAREL?), is now helping to serve dinner, too.
The Internet retailer is posting more than 1,000 restaurant menus
on its site in six cities, free of charge. The strategy? Well, there
isn’t one yet, Bear Stearns analyst Jeff Fieler told
SCT.
“They’re seeing how many people look at them, and when they
see how many people look at them, they’ll develop a business
strategy,” he said. Amazon is also displaying thousands of catalogs
from merchants selling everything from art to medical supplies.
NET PROFIT
Last year 56 percent of retailers reported that their online operations
were profitable, up from 43 percent the year before, according to
Boston Consulting Group’s annual Shop.org study, which uses
some data from business technology consulting firm Forrester Research.
Shoppers spent $51.3 billion online in 2001, and this year that
figure is expected to increase 41 percent to $72.1 billion. “For
multichannel retailers, it is now more important than ever to ensure
that the online businesses are integrated with the store and catalog
businesses,” said Peter Stanger, the Boston Consulting Group
vice president who led the study. Shop.org is an association for
online retailers.
NET LOSS
Louisiana lost up to $160 million in uncollected taxes on Internet
sales last year, according to a University of Tennessee study, and
Louisiana State Sen. Bill Jones is trying to do something about
it. He’s sponsoring a bill that would put more of a burden
on e-tailers to collect sales taxes. The current system relies on
consumers to report their own purchases, and few do, which hurts
bricks-and-mortar retailers, Jones observed. “It’s tremendously
unfair,” he told
The Advocate, Baton Rouge.
CONSUMERS KO KIOSKS
Cambridge, Mass.-based Forrester Research reports that 14 million
people — 22 percent of online consumers — have patronized
an in-store kiosk, but only half find them valuable. Usage will
not grow this year unless retailers can demonstrate to consumers
that the kiosks have some value, the firm predicts.
CONSUMERREPORTS.ORG RANKS SITES
Who has the best-designed Web sites? Amazon.com, Barnes & Noble.com,
CDNow and New York City retailer J&R Music and Computer World
are among ConsumerReports.org’s top picks. E-merchants in general
have improved when it comes to spelling out privacy policies, according
to the consumer rights organization, which this year launched a
division to monitor and grade e-commerce sites for honesty and user-friendliness.
The organization tracks about 260 online merchants.
