Log in
Login
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesHot NewsMost Read NewsRecomm.Business LeadersCalendar 

Consumer Confidence Down, Online Spending up - Michael Zimmerman's Hedge Fund Sees Mcommerce as Future of Retailing

share with twitter share with LinkedIn share with facebook
share via e-mail
0
09/24/2013 | 08:22pm CEST

Prentice Capital Management's Michael Zimmerman anticipates that online shopping and smartphone mcommerce will continue to take market share, notes that retailers with innovative mobile apps report up to five times more customer interaction than those not implementing mobile strategies

Consumer confidence is down but, contrarily, spending in some key areas is up. According to the Michigan Index, U.S. consumer confidence for August slid from a six-year high. Additionally, The Bloomberg Consumer Comfort Index plummeted four straight weeks to its lowest level since April.

"The economy, employment, wages, and retail sales continue to stagger along. Retailers and consumers are resilient but not overly optimistic about the broader economy," said NRF President Matthew Shay, but "positive retail sales growth continues month-after-month."

This is confirmed by August Nonstore retailers' sales figures, the measure of money spent on internet shopping, showing an increase of 0.5% seasonally-adjusted month-to-month and an increase of 8.8% unadjusted year-over-year.

This is proof that low consumer confidence doesn't equate to weak consumer spending. Michael Zimmerman, CEO of Prentice Capital Management feels today's consumer is stretched thin. The job market and wages are stagnant, interest rates and prices edging higher, record numbers of Americans on food stamps and the crunch of higher taxes - all factors that Zimmerman believes mean online shopping growth will accelerate as consumers turn to their mobile devices seeking ways to maintain lifestyle choices at lower cost.

August retail sales showed that total retail sales increased 0.2% adjusted month-to-month and increased 4.7% adjusted year-over-year.

The data suggests that consumers remain cautious with their pocketbooks and purchases. This month's weaker overall retail sales will continue to put pressure on policymakers, who are dealing with tapering, and retailers, who will need to focus on price and better engagement strategies to entice consumer spending.

Zimmerman has recently commented that US consumer retail growth will likely continue to perform well in the year ahead. His pattern of investing as revealed through Prentice Capital's disclosures has shown the Zimmerman hedge fund favors stocks with strong brands and well conceived mobile and online commerce strategies.

"Given the evidence, we seem to be entering the start of a persistent mobile age," Scott Galloway, a professor of marketing at NYU Stern and creator of L2, noted in a statement. "Brands ignore this shift at their own peril."

Companies like Amazon and Starbucks have actively sought ways to communicate and connect more effectively with customers, creating mobile apps that provide immediate discounts and useful features to consumers. Starbucks allows customers to pay directly from their Smartphone in store, while Amazon gives consumers the ability to scan barcodes at bricks and mortar retailers, quickly displaying online discounts for the same and similar products.

As consumers evolve companies must follow suit, engaging their customer base with new and innovative methods. An estimated 33% of Smartphone users check for product reviews, coupons and discounts prior to making a purchase, often while instore - a trend fuelled by Social media. Intelligent use of Social media and Smartphone data allows forward thinking companies to analyze customer behavior and quickly address needs and concerns, adapting as necessary.

2013 could become a breakthrough year for mobile shopping, especially if smartphone prices continue to plummet and strong consumer uptake of the devices continues.

About Prentice Capital Management
Prentice Capital Management LP focuses on private and public equity investments in the U.S. consumer and retail sectors.

About HedgeUp
HedgeUp online publication focuses on middle market hedge funds and the managers behind them worldwide.

HedgeUp
Sam Taner, +1 646-583-2187
sam.taner@hedgeup.com


© Business Wire 2013
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news
Date Title
06:38a SYMANTEC : Services to extend the Backup Exec license the Symantec
06:36aDJJapan Stocks Lead Declines
06:35a M D C : Hiring of insurance for motorcycles vehicles and assigned
06:35aDJSFX ENTERTAINMENT : Concert Producer SFX Entertainment to Hire New CEO
06:32a GROUND PROPERTIES : Bye-laws
06:32a EASTERN IRON : Appendix 5B - June 2016
06:32a GROUND PROPERTIES : Memorandum of Association
06:32a DEMOCRATIC PARTY OF WISCONSIN : Statement from Democratic Party of Wisconsin Chair on Conclusion of the First Night of the Democratic National Convention
06:31a FAURECIA : Strong profitability improvement in the first half 2016
06:29a Vodafone Qatar reports flat year-on-year loss for Q1
Latest news
Advertisement
Hot News 
0.09%Asia Oil Futures Edge Higher After Overnight Rout
Most Read News
07/25 MainOne, Radware Lead Fight Against Cyber Threats with DDoS Solution
Most recommended articles
12:36aDJJapan Stocks Lead Declines
12:35aDJSFX ENTERTAINMENT : Concert Producer SFX Entertainment to Hire New CEO
12:29a Vodafone Qatar reports flat year-on-year loss for Q1
12:18aDJAPPLE : iPhone Sales Are Key in Apple Results -- Earnings Preview
07/25DJAsia Oil Futures Edge Higher After Overnight Rout