Member access

4-Traders Homepage  >  News

News

Latest NewsCompaniesMarketsEconomy & ForexCommoditiesHot NewsMost Read NewsRecomm.Business LeadersVideosCalendar 

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

09/24/2013 | 02:22pm US/Eastern

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
React to this article
Latest news
Date Title
2m ago EQUITY ALERT : Rosen Law Firm Reminds SeaDrill Shareholders of Important Deadline in Class Action to Recover Investment Losses - SDRL
3m ago HONDA MOTOR : BRIEF: Woman dies in collision with rig
4m ago TRIUMPH : KEDC strikes deal with Triumph, says goodbye to assistant director
5m agoDJCHINA'S YUAN CAN REMAIN STABLE : Central Bank Official
6m ago MINERAL COMMODITIES : Blastrite Withdraws Application For Interim Relief
6m agoDJSouth Korea Trims 2015 GDP Growth Forecast to 3.8% From 4.0%
7m agoDJImpasse Over Parliamentary Vote Puts Chill on Greek Business
10m agoDJWalgreen Steers A Global Course
11m ago RESOURCE EQUIPMENT : Ceasing to be a substantial holder
11m ago RESOURCE EQUIPMENT : Change of Director’s Interest Notice
Latest news
Advertisement
Hot News 
DENDREON : Entry into a Material Definitive Agreement, Change in Directors or Principal Officers, Other Events, Financial Statements and Exhibits (form 8-K)
DIXONS CARPHONE : *exane bnp raises dixons carphone price target to 510 (450) pence - 'outperform'
BERKELEY MINERAL RESOURCES : Obsidian IR
NATURE : Warns 2014 Results To Be "Materially" Below Market View
FINISH LINE : Reports Third Quarter Fiscal Year 2015 Results
Most Read News
2h ago SMARTAC CHINA : 22 Dec 2014Announcements and Notices - Voluntary Announcement in Respect of Signing of Wi-fi installation and Post-installation Maintenance and Operation Agreement
2h ago SONY : Kevin Hart to host 'Saturday Night Live' Jan. 17
1h ago INDOOR SKYDIVE AUSTRALIA : ASX:IDZ) Perth Development Application Lodged
1h ago FLYING BACK ON COURSE : the inside story of the new Airbus A350 jet
2h ago GOODMAN : GMG distribution for the six months ending 31 December 2014
Most recommended articles
5m agoDJCHINA'S YUAN CAN REMAIN STABLE : Central Bank Official
6m agoDJSouth Korea Trims 2015 GDP Growth Forecast to 3.8% From 4.0%
7m agoDJImpasse Over Parliamentary Vote Puts Chill on Greek Business
10m agoDJWalgreen Steers A Global Course
24m agoDJBANK OF EAST ASIA : Thomas Kwok Conviction Won't Impact Company
Dynamic quotes  
ON
| OFF