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Fred Meyer: The Need for E- Commerce Abdulaziz Ibrahim JARED ALLEN.

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Presentation on theme: "Fred Meyer: The Need for E- Commerce Abdulaziz Ibrahim JARED ALLEN."— Presentation transcript:

1 Fred Meyer: The Need for E- Commerce Abdulaziz Ibrahim JARED ALLEN

2 A traditional “brick and mortar” retail store. FRED MEYER

3 FRED MEYER CURRENT ONLINE SHOPPING AVAILABILITY Specialty Grocery Orders Order Flowers Digital Photo Services Fred Meyer Jewelers

4 FRED MEYER PRICE COMPARISON View local ad Go to the store No way to price shop online Could call store – very slow and inconvenient

5 CONVENIENCE OF ONLINE SHOPPING Compare prices from home Compare product features, selection Read customer reviews. Find out whether an item is in-stock Have items shipped directly to home or business

6 E-COMMERCE GROWTH E-commerce sales reached $100 billion in 2006 Over $225 billion this year By 2016 $327 billion By 2016, 10% of retail sales are e-commerce Growth rate ten percent per year

7 BENEFITS TO THE SELLER E-commerce reduces costs for retailers Access to customers 24 hours a day, 7 days a week Reduced environmental footprint

8 LOYALTY PROGRAMS Online retailers gain access to customer data Fred Meyer’s loyalty program (Fred Meyer Rewards) could track additional information about customer purchases and encourage future purchases Learn about customer shopping habits Personalized offers or product recommendations

9 CONCLUSION Fred Meyer is missing potential sales Competitors (Target, Wal-Mart) offer e-commerce Customer perception of Fred Meyer is lower because it does not offer e-commerce Fred Meyer should invest in e-commerce so that it can remain competitive and grow profits

10 References Jefferson, Jamie. “Benefits of Online Shopping.” Ezine Articles. Retrieved from http://ezinearticles.com/?Benefits-of-Online- Shopping&id=300201 Rueter, Thad. “E-Retail Spending to Increase 62% by 2016.” Internet Retailer. Feb. 27, 2012. Retrieved from http://www.internetretailer.com/2012/02/27/e-retail-spending- increase-45-2016 “Shop Online.” Fred Meyer. Retrieved from http://www.fredmeyer.com/shop_online/pages/default.aspx


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