State of the Industry + +

Key CBA 2016 State of the Industry results discussed at UNITE 2016.By Lora Schrock

‘Big Six’ Issues A� ect Retail Growth

ing because shoppers are changing. Retailers need to engage with customers and become more than just a source for product, because consumers can get product anywhere. Ac-cording to Tina Constable, SVP and pub-lisher for Penguin Random House’s Crown Business, Crown Forum, and Christian Pub-lishing, interacting with customers is key.

“[Customers] are in the driver’s seat—they’re dictating everything,” she says. “As book publishers, we’ve completely disrupted much of our publication process based on this development and have started to see positive results in our business. We have had to adapt in signi� cant ways as we’ve navigat-ed this new retail landscape.”

Part of adapting means stores need to be-come a place that meets customers’ needs for aspiration and transformation. Consta-ble suggests that the Christian marketplace could learn some “hard-fought lessons from the ABA over the last four or � ve years.”

She explains: “ABA retailers � gured out that they had to make the store a place to connect with the community, not just a place to buy books. � rough author events, book clubs, educator nights, community lectures about issues important in the local market, story times, adult/kids programming (guest lecturer giving tips on photography, spring gardening, etc.), those stores have become community gathering places and signi� -cantly improved their bottom line.”

Marketing and the Digital DivideNot only can customers buy product any-where, they can buy it anytime and in any way they choose, thanks to online research-ing and shopping. Where does that leave re-tailers? Still in the hunt, says Craig Tieken, VP of product and implementation, TSYS’ merchant segment.

“Many consumers begin their shopping experience on a mobile device to research products and price and availability, then complete the purchase in store,” he says.

Constable agrees. “Data seem to suggest that while consumers are increasingly ‘pre-shopping’ online, many still want to make a

physical purchase in-store. If that’s true, how can Christian retailers increase their online presence and o� erings while also driving their physical sales? Having an online option for their customers is going to be critical for long-term success. � ey’ll need a complete retail ecosystem, online and physical. If CBA retailers only have the physical option for their customers, they give away the online sale to the big online retailers.”

Unfortunately, that is already happening. According to the 2016 CBA State of the Indus-try report, a surprising 25 percent of respon-dents didn’t have a store website. Having an online presence is a necessity that comes with many bene� ts. Constable says it gives retailers the ability to see new trends emerge, stay ahead of changes in buying patterns, and “test sales potential of titles and avoid tying up valuable open-to-buy dollars in physical inventory.”

More and more marketing is happening online, too. Deloitte Digital’s Navigating the New Digital Divide reports “the traditional role of marketing is being disrupted every bit as much as the overall retail landscape. � e data tell us that retailers are losing their voice as they compete with a myriad of new information sources.”

� e report suggests retailers prioritize the creation and curation of authentic messages that speak directly to the category shopper. It’s a challenge, but one that’s here to stay—and suppliers realize that, too. According to the 2016 Supplier CEO Survey, 81 percent of respondents said digital marketing tools and technologies would be the technology initia-tives they implement in the next three years.

“Digital marketing is a must for any retail-er, but it’s not always easy,” says Steve Potratz, president of � e Parable Group. “We recent-ly had a pastor’s event and used Facebook advertising as one marketing tool along with email and direct mail. Using customer data and uploading it into Facebook then creat-ing and buying the ad is a lot of work and requires a lot of knowledge to do it properly.”

DistributionAccording to the Deloitte report, operating a

“Though one may be overpow-ered, two can defend them-selves. A cord of three strands is not quickly broken.”

� e author of Ecclesiastes 4:12 under-stood that when people work together, they operate from a position of strength. More hands lighten the load; more people brain-storm better solutions.

Coming out of this year’s CBA State of the Industry report are several issues retailers must address in order to grow. � e industry will also come together to discuss these � nd-ings and more at Tuesday’s general session, “Leadership in Disruption,” at UNITE 2016 in Cincinnati, Ohio, June 26-29.

A panel of leading industry CEOs will share their ideas and vision on what’s need-ed to succeed in ministry, mission, and busi-ness today and going forward. Sitting on the panel are Chuck Wallington, president, Christian Supply; James Barnett, president, DaySpring; Terry Hemmings, president, Provident Music Group; Mark Taylor, presi-dent, Tyndale House, and Curtis Riskey, president, CBA. Kristen McLean of Nielsen BookScan keynotes the session featuring the latest data on Christian consumers.

� e State of the Industry report delves into several issues a� ecting Christian retail, including these “big six” that rose to the top.

The Store Reinvented� e role of the Christian retail store is chang-

“Though one may be overpow-

The Official Magazine of CBA22 CBA Retailers+Resources | 06.16

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