QR Code Use In Retail Stores

QR CODES IN RETAIL STORES HOLIDAY SEASON 2011

7.2% of retail stores contained at least one QR code dur-ing the holiday season.

QR codes are appearing in shopping malls and retail locations across the United States. During the 2011 holiday season, shoppers likely encountered at least one code. Our findings show that one out of 14 stores incorporated QR codes as part of a mobile strategy that extends beyond the brick-and-mortar store location.

To understand which retail segments are using QR codes and how they are used, Nellymoser examined more than 700 stores in the five largest shopping malls in the greater Boston area during December 2011.

Nellymoser walked every floor of each mall and entered each store. We examined materials outside of stores, front window displays, interior retail displays and the fitting room areas of all stores within the malls. We did not include stores not attached to the main building or restaurants. We also scanned every code and launched every mobile experience.

Overview

Nellymoser discovered that 23 of the store brands, or 7.2% of the total, contained at least one QR code. This is approximately one out of every 14 stores. None of the stores used a 2D barcode other than a QR code, such as a Microsoft Tag or a Spyderlynk SnapTag.

By Ann Carver, Analyst, and Roger Matus, Executive Vice President, Nellymoser, Inc.

Nellymoser, Inc. | 11 Water Street, Arlington, MA 02476 | t: 1-781-645-1515 | [email protected]

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21, Gap, Journeys, PacSun and Sephora. Mobile electronics stores using QR codes included AT&T, Best Buy Mobile, Sprint, T-Mobile and Verizon.

Anchor stores had a low rate of QR code use, with only Best Buy and Macy’s featuring them in store.

Placement

There was substantial variation in the ways stores displayed QR codes. However, trends emerged. Many codes were placed in the front window as a way to entice people into the store. We also found many codes in fitting rooms and at the register.

Front window

More than 700 retail locations were visited, including national anchor stores such as:

•BestBuy •J.C.Penney •Lord&Taylor •Macy’s •Nordstrom •Neiman-Marcus •SaksFifthAvenue •Sears

The five malls were selected based on the number of stores and total retail square footage, not including out buildings. (See table below.) As three of the malls in our sample would have been operated by the same mall management, we substituted The Shops at Prudential Center for the South Shore Plaza, which, like The Burlington Mall and The North Shore Mall, is managed by Simon Malls.

After de-duplicating stores and removing stores that do not serve as retail outlets (such as food court locations), a total of 318 unique store brands were identified.

Shoppers looking for teen and young adult fashion, beauty products or mobile electronics were more likely to encounter a QR code than those shopping in other stores.

Store brands aimed at teens and 20s that used QR codes included aerie, American Eagle,BCBGMaxAzria,Express,Forever

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Shoppers for teen and young adult fash-ion, beauty products or mobile elec-tronics were more likely to encounter a QR code.

A majority of the QR codes found in retail stores appeared in the front display of the store. Most commonly, QR codes were applied in the form of a decal, but, they were also found on freestanding signage. The size and placement of these codes varied to some degree, as did the accompanying text. However, they generally appeared in the lower register of the window and off to either the far left or far right sides.

Front window decal at Express invites shoppers to “Download the App” from “Express Mobile.”


Stores that displayed codes in this way included Express, Johnston and Murphy, BCBG Max Azria, and Gap.

FrequentlytheQRcodesledtoabrandedstore app download. In the case of the Gap, the code linked to a mobile optimized gift card purchase site. Other links led to social media, a video, or a sweepstakes.

Fitting Rooms

We were surprised to find QR codes in a significant number of fitting rooms. In American Eagle, PacSun, Madewell, and aerie, QR codes appeared on posters in the space outside of the fitting rooms, as well as on the mirror and posters inside the fitting room.

These codes either led to app downloads or to sweepstakes. In both cases, the codes took advantage of the privacy of the fitting room to allow the user time to experience

the App before resuming their shopping. In the case of American Eagle, the codes linked to the same location as the codes in the front window. In the case of PacSun, the code inside the fitting room resolved to a unique page linked to app downloads, and the code outside of the fitting room linked to a sweepstakes entry page.

Register displays

In several stores, materials posted at or near the register also took advantage of a moment in the shopping experience when the shopper pauses and can direct their attentiontoprintedmaterial.AtForever21and Journeys, posters featuring QR codes

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We were surprised to find QR codes in a significant number of fitting rooms.

Surprisingly, QR codes appeared in fitting rooms of several stores. From left: Madewell, PacSun (on the mirror) and aerie.

Credit card scanner at aerie invites shoppers to download the aerie app.

Sign above register at Journeys encourages shoppers to use the QR to share via social media.


product hang tags, although that was not seen during the survey.

Advertisements

In some cases, stores replicated existing print ads with QR codes. Wall signs and advertising boards that included ads with QR codes appeared for Sketchers, T-Mobile, and Rosetta Stone. These advertisements generally mimicked print advertisements used by the companies, and the codes resolved to video or a web page.

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23 of the store brands, or 7.2% of the total, contained at least one QR code.

appeared at the checkout counter. At aerie, a code linking to the mobile app appeared on the screen of the credit card scanner while it was idle between transactions.

Product displays

In some cases, retailers use QR codes to provide additional information about a specific product as opposed to the brand. This is helpful in situations where the product is featured on a display, as seen at Sephora. This also can be applied to

QR Code Placement In Mall Stores

FrontWindow

StoreEntrance

ProductDisplay

FittingRoom

Register or

ScannerOther

Aerie P P

American Eagle P P

AT&T P

BCBG Max Azria P

Best Buy Mobile P

Brookstone P

Cultural Survival Bazaar P

Express P

Forever21 P

Gap P

Johnston and Murphy P

Journeys P

LaneBryant P

Macy's P

Madewell P

PacSun P

Pottery Barn Teen P

Pretty Young Thing P

Rosetta Stone P

Sephora P

T Mobile P

Under Armour P

Verizon P


promotes this reciprocity, but enables the transaction to occur in one step.

Sweepstakes and discounts are both common ways to provide a potential value to the user with limited sacrifice on the part of the retailer.

This approach was utilized by Madewell, Pottery Barn Teen and PacSun.

Social Media

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A common QR code practice in retail is to pro-vide incentives to shoppers.

How QR Codes Are Being Used

In almost all cases, QR codes are delivering shoppers to mobile-optimized sites instead of the regular corporate site. While there was considerable variation in the destination of the QR codes found, five types of destinations continually recurred.

App download

Many stores have designed their own iPhone and/or Android apps. While signs could just publicize the apps, the QR codes make it quick and easy to acquire the app. In most cases, these apps go beyond providing basic product information and include styling advice, loyalty programs, social media or check-in incentives and location-based discounts. Some include the ability to scan product bar codes and QR codes within the app.

Stores who have harnessed QR codes for this purpose include American Eagle, aerie, Express, and PacSun.

Sweepstakes and Incentives

A common practice was to incent shoppers to interact with the brand using a mobile phone by offering discounts, special offers and opportunities to win prizes or gifts with purchase. A QR code not only

Some store apps offer location-based user perks and discounts

Part of the social media strategy of many stores involved sharing as well as checking inonFourSquareorFacebook.Acheck-inexplicitly endorses a product or brand to those connected to a user’s profile.

Stores and brands that used QR codes to connect to social media included aerie, American Eagle, and BCBG Max Azria.

Product information

While not a common practice with teen and young adult fashion or beauty products stores, electronics stores such as Best Buy and mobile retailers employed QR codes to provide additional information about products offered in store. These codes often appeared on shelf talkers or pricing tags.

QR codes provided the opportunity to add much more technical data than can fit on a the retail package. The code may link to more information than could be obtained from a retail salesperson, but that was not tested. Codes at Best Buy link the user to the specific mobile-optimized page for the product.


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QR codes ap-pear to be part of an overall mobile strategy.

Stores such as Sephora used QR codes to offer demonstrations and instructions for cosmetics, which often require some introduction. Videos provided this information and could engage the shopper if a sales person was not available.

The best retail campaigns witnessed this year employed some combination of these techniques. QR codes appear to be part of an overall mobile strategy. QR codes are a way to encourage shoppers to download

apps, get discounts, enter sweepstakes and share via social media with their mobile device even when away from the mall.

Instructions

Almost all codes appeared with text that explained how to read a code or what would happen if a code was scanned.

There is considerable variation in the detail provided in the text supporting QR codes

Mobile Engagement Linked To QR Code

App Download

MobileSite or

Product Pages

Social Share Sweeps Video Other

Aerie P

American Eagle P

AT&T P

BCBG Max Azria P P P

Best Buy Mobile P

Brookstone P P

Cultural Survival Bazaar P

Express P P

Forever21 P

Gap P P

Johnston and Murphy P

Journeys P P

LaneBryant P

Macy's P

Madewell P

PacSun P P

Pottery Barn Teen P P

Pretty Young Thing P P P

Rosetta Stone P P

Sephora P

T Mobile P

Under Armour

Verizon P P


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QR codes are a way to demon-strate being on trend and an edgy way for the consumer to connect with the store while receiving some benefits.

About Nellymoser

Nellymoser, a mobile marketing and technology company, creates instant, interactive consumer “engagements” and rich media apps on mobile devices, such as tablets and smartphones.

Nellymoser’s engagements and apps range from contests and product videos to interactive multimedia engagements that can be shared on social media (e.g., Facebook,andTwitter)andincludee-commerce for instant product purchases. Many of Nellymoser’s clients use us for responding to action codes, such as 2D barcodes, QR codes, Microsoft

in retail. Express, for example, posted their QR code with the instructions “Download the app, Express Mobile.” In contrast, the QR codes posted in the American Eagle and Madewell fitting rooms appeared on posters with instructions for downloading scannerapps.Further,Journeysincludedan SMS option to reach their link as well.

Conclusion

While there is a great deal of variety in the retailers using QR codes, it is clear that both a key demographic emerges and that QR codes are part of an overall mobile strategy, not an end to themselves.

The stores that targeted shoppers aged from 14 to 30 with moderately priced merchandise were more likely to use QR codes. Teen retailers such as aerie, American Eagle, and PacSun cater primarily to customers between the ages of 14 and 20 at a middle price range. Express and

Madewell reach a slightly older group, primarily between 18 and 30, and a slightly higherpricerange.Sephora,Forever21,Gap, BCBG Max Azria, and Pottery Barn Teen reach the same audience as well.

These retailers like to be seen as being on trend. QR codes are a way to demonstrate being on trend and an edgy way for the consumer to connect with the store, while receiving some benefits.

The benefit to the retailer is greater. App downloads and social sharing, a key part of the mobile strategy to drive a longer-term, measurable connection with the brand are being driven by QR codes.

While adoption of QR codes in retail may be a new trend, the nature of the stores using it and the emphasis on lasting engagement with customers indicates that it is a leading indicator of future QR code growth.

Tags,DigimarcwatermarksandNFC.Nellymoser’s customers include leading publishers, advertisers, retailers, and consumer packaged goods companies.

Nellymoser was founded in 2000 and is headquartered in Arlington, MA.

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Copyright 2011 by Nellymoser, Inc. All Rights Reserved.Not responsible for errors and all information is subject to change without notice. Nellymoser and the Nellymoser logo are

trademarks of Nellymoser, Inc. All other marks are the property of their respective owners.

QR Code Use In Retail Stores

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