Why do consumers shop online? An April 2008 Piper Jaffray study gives some answers: 68% selected convenience as an incentive to increase online buying, while 39% cited “easier to find things online“  as a reason for making web purchases. With gas prices continuing to climb, a growing number of shoppers are deciding to skip car trips to the mall in favor of online merchants. In addition a new report from Nielsen Online found out, that more than three quarters (80%) of consumer electronic purchasers first visited a store website and then bought the product in-store.

Good reasons for stores to tap the convenience and functionality of online tools, such as search and recommendation engines, to improve the often annoying offline shopping experience.

Example: Wal-Mart with P&G “Olay for you”

In April Wal-Mart Stores in the US began testing an in-store version of “Olay for You”. This is a Procter & Gamble online product recommendation program, that attracted more than a million visitors in the first quarter 2008. How it works? You answer some basic questions about your skin and get your personal recommendation. 80% of the website visitors completed an involved question-and-answer process and spent an average of eight minutes on the site.

According to the head of strategy for Wal-Mart Stores in the U.S., he hasn´t seen some of the newer systems in other stores, but believes the “Olay” system being tested by Wal-Mart and P&G has potential. He also said, that more retailers will look to mimic the online experience by importing inventory data from their stores to their websites to give consumers real-time information about product availability.

...and its second generation in-store digital TV

Currently Wal-Mart is preparing a second generation in-store digital TV and signage network. More details shall be unveiled to marketers, advertising and media agencies in September. But it seems that the concept will involve moving TV screens – or digital signage – much closer to eye level, incorporating them into product displays and creating interactive “virtual assistants” from which shoppers can get product information or refine choices in key categories such as health or beauty aids.

Example: “supermarket of the future”

In May, the METRO Group unveiled its new real,- Future Store North Rhine-Westphalia, Germany. At the real,- Future Store, METRO Group is testing “groundbreaking technologies and innovative concepts for the retail world of tomorrow” including interactive terminals. In the newly designed "beauty & more" department, via the interactive skin care information terminal, for example, customers can find out exactly which skin type they have and can call up corresponding expert beauty and care advice – similar to “Olay for you”.

Example: Evincii’s PHARMAssist

Start-up Evincii began installing kiosks offering a mix of search and recommendation engine capabilities in the over-the-counter-drug sections of “Longs” pharmacies in California and is looking to roll out the concept nationally. Evincii looks to return product-related results only based on the criteria shoppers input. Then, once a product is selected, the kiosk helps the shoppers to locate it on the shelf.

Installing the kiosks is free to the stores. Evincii charges advertisers to show their products – the system allows advertisers to place ads similar to online display ads, including video, around search results – and splits the revenue with the retailers. An initial advertiser on the system is Johnson & Johnson. Evincii’s research at Longs indicated that 15% to 18% of visitors to OTC drug departments use the kiosks. Stores using the kiosks had category sales lifts of 3% to 6%.

Online to offline in brand stores 

The trend also comes up with brand stores: Since June visitors to Niketown in London can go beyond creating their own sneakers at the NIKE ID shop – they can now design their entire outfits with the new Build Your Team Kit. The interactive display enables anyone to customize a complete Nike football kit for themselves and / or their teammates.

Pro

Probably helps retail sales but is also a good vehicle for advertisers (targeting and low production costs).

Con

Consumers might be willing to spend the time carrying out search queries from the comfort of their homes, doing it in stores is another matter.