Internet Retailer’s Mystery Shopping Study conducted by the E-Tailing Group shows that rich media, coupons and themed merchandising areas are the top choices for retail web sites making customer-focused improvements.

This annual study is based on a survey of 100 retail web sites. Results reflect online trends toward the use of emerging media online. For instance, online audio files were found on 41 percent of sites, quite an increase from the 15 percent reported in Q4 2005.

Below is a recap of some of the significant changes found in Q4 2006:

• 38 % of retail sites display streaming video, up from 20% in 2005

• 46% of retail sites had a color change, up from 34%

• 57% of retail sites displayed alternate views, up from 45%.

Quite often, we see data that shows online searchers driving offline sales. However, recent research shows that the reverse is also true: offline marketing channels can drive online commerce.

A recent BIGresearch study by the Retail Advertising and Marketing Association (RAMA) shows that sales are affected by what people see in various offline marketing channels as well as what they see on the Internet.
When asked what triggers online merchandise searches, consumers replied that they frequently search online after exposure to the following:

• Ads or products in print magazines (47%)
• Newspaper ads and content (42%),
• TV ads and programming (43%)
• While reading a article (44%)

In other words, consumers get buying ideas from the environment, depending on exposure to content, ads or programming that triggers an idea for needs fulfillment. This means that advertisers will get best results with a variety of online and offline media. Yes, search engine marketing is a convenient and popular strategy, but retailers can use traditional advertising channels in conjunction with online advertising for best results.

Most marketers are aware that in today’s Internet environment, consumers participate in creating the brand message. They do this by expressing themselves on the web and by purchasing the brands they can relate to. It’s your job to make your brand attractive to consumers by anticipating and fulfilling their needs.

Consumers in Control: Consumers are at the helm. They are personalizing the way they shop, interact and communicate. They are creating videos and watching the videos made by others. They listen to podcasts and record their own. They share their photos, create social networks and subscribe to RSS feeds — or create their own feeds. Not only that, they pack their media on their cellphones or moble devices.

The end result is that the information on your brand is delivered and developed outside of your company. Organizations no longer have control over their brand like they did in the days of yore.

We reported on the dollar stores hot retail sector in February. Now Dollar General, a public company, has agreed to a buyout offer from private-equity firm Kohlberg Kravis Roberts in an agreement that will take the discount retailer private.

Dollar General shareholders must yet approve the deal but the company’s board recommends that its shareholders vote for it. The company estimates the deal could close in Q3 this year.

While based in the Nashville suburb of Goodlettsville, Dollar General operates approximately 8,260 stores.

Kohlberg Kravis has agreed to pay $22 per share for each Dollar General share. This price represents a 31.1 percent premium over the stock’s March 9 closing price on the New York Stock Exchange.

Dollar General CEO David A. Perdue believes the transaction provides excellent value for the shareholders, representing a significant premium and cash buyout.

Wholesalers in the pet care industry should know that pet products has been one of the fastest growing niche retail markets for several years now. The overwhelming success of the retail chain Petco is a testament to the economic prowess of puppies and the people who love them, as is the fact that more than half of all American homes have at least one dog or cat.

A more practical eye looking to substantiate this claim should consider that by the end of this year retail pet supply’s sells are expected to top $50 billion.

According to report by the American Pet Products Manufacturing Association it might be time for pet supplies retailers and wholesalers looking to get a bigger slice of that $50 billion to forget about chew toys and hamster wheels. The report was quoted in Specialty Retail magazine as saying that the top four selling categories of pet care products were all what one might call luxury items. Apparently when it comes to Fido’s happiness the sky is the limit for most pet owners.