Online Department Stores. What are we searching for?

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1 Online Department Stores What are we searching for?

2 2 3 CONTENTS Table of contents 02 Table of contents 03 Search 06 Fashion vs. footwear 04 A few key pieces 08 About SimilarWeb Stepping up the Competition in Search Department Stores predate the internet by at least a century, but in the age of online shopping they have been experiencing increased competition, both from each other, and from new players in the market. In preparation for the holiday season, when department stores do much of their business, SimilarWeb compared and analyzed shopping habits and marketing strategies for leading US retailers-- Macy s, Bloomingdale s, Zappos, Nordstrom, and Saks Fifth Avenue. The main finding is that department stores most important category for online search traffic is footwear.

3 4 A Few Key Pieces In Q , t h e s e w e r e t he t o p 1 0 de pa r t m e nt st o r e se a r c h t erm s f o r p a i d an d o r g a ni c : L oo k i n g a t t h e t o p 1 0 se a r c h phr a se s ( e x c l udi ng t e r m s with t h e s t o r e n a m e s ), S i m i l a r We b unc o v e r e d a st r i k i ng d if fe r e n c e b e t w e e n p a i d a nd o r g a ni c se a r c h. I n pa i d s ear c h, m o s t t e r m s a r e br a nd na m e s t ha t a r e so l d i n s t or e s - U g g s, Ca n ad a G o o se, a nd M i c ha e l K o r s ( w hi c h i s a ls o t h e o n l y b r an d t h a t c o nsi st e nt l y r a nk e d a m o ng t he t o p 10 t h r o u g h o u t t h e y e a r ). I n o r g a ni c se a r c h, m o st t e r m s a r e f or g e n e r i c i t e m s s o l d a t st o r e s, l i k e sho e s o r w a t c he s. T hi s c a n p r o b a b l y b e a t t r i but e d t o t he f a c t t ha t l ux ur y br a nds a re m o r e e x p e n s i v e, a nd ha v e hi g he r m a r g i ns f o r r e t a i l e r s. Depa r t m e n t s t o r e s t h e r e f o r e c ho o se t o c o nc e nt r a t e t he i r o n li n e a d s p e n d o n t h o se br a nds, i nc r e a si ng t r a f f i c f r o m t a rg e t e d b u y e r s s e a r c hi ng f o r t he se i t e m s. In t h e f o u r t h q u a r t e r o f , bo t h pa i d a nd o r g a ni c s ear c h e s f o r b r an d n a m e s r a nk t he hi g he st o ut o f 1 0 o rg a n i c s e a r c h t e r m s, a nd 9 o ut o f 1 0 pa i d se a r c h t e r m s a re f o r b r a n d s. T h e spi k e i s pr e sum a bl y be c a use dur i ng t h e h o l i d a y s e as o n w e se a r c h f o r br a nd- na m e g i f t s. 5

4 6 Fashion Trampled Under Footwear 7 Impressively, in every quarter, the majority of the search terms (14 out of 20) are footwear related. Footwear is the most searched for category driving traffic to department stores in general. This is true both in paid and organic search. As a search category, Footwear is also the most specific; in the top 10 search terms we see items like sandals, boots, rain boots, and boat shoes, but we also see specific shoe models like the Nike Free 5.0 or the Adidas Superstar. Tracking the footwear zeitgeist, and knowing which brands are most popular in a particular season, can be extremely valuable for Department Stores as they plan and execute their online marketing strategies. Once again, the holiday season is important - it is when footwear-related searches are the highest drivers of online traffic to Department Stores. The dominance of the footwear searches also explains why Zappos receives 26% more traffic from search than the competitors. The dominance of the footwear searches also explains why Zappos receives 26% more traffic from search than the competitors. Zappos may have started off as a shoe-centric business, but it has since grown to become a real online Department Store. When searching for footwear, which is what most shoppers seem to be searching for, they probably gravitate towards Zappos for the site s excellent videos of every pair of shoes they sell, and for the company s excellent customer service reputation. Zappos, a true digital native, is able to capitalize on consumers voracious searches for footwear. From Q to Q3 2015, traffic from search to the department stores in the study has risen an average of 2.7% (with Saks experiencing a drop in search traffic). With the rise of search, it is important that Department Stores understand consumers search patterns, how they correspond to the change in seasons, and what brands are performing particularly well in a given season. They also need to understand what traffic their competitors are getting, and how they can compete. Targeting the right search terms will mean better performance in search, more effective marketing spend, and can ultimately translate a success in other sources of traffic, in particular from social networks. Online Department Stores Report

5 Similar Web s D igit al I n s i g h t s T eam w i l l c onti nue t o r e s e a rc h o nl i ne e -c omme rc e tr affic b e h a v i o r, and of f e r anal ysi s t hat reveals a c ti onab l e i nsi ghts fo r r e t a i l e rs a n d the i r mark e ti ng teams. F o r m o re d e tai l e d i nf ormat io n, p le a s e c o n tac t our Di gi tal Insight s T e a m v i a p re mi l arw e b. c om. T h e d a t a i n thi s re p ort w as c ompiled fr o m U. S. d e sk top We b tr affic u s i n g Si mi l arwe b PR O s p rop ri et ary mark e t i n g i nte l l i ge nc e p l atform, in c l u d i n g mark e t re se arc h and a n a l y s i s. Si mi l arwe b d ata c omes fr o m 4 ma i n sourc e s: 1. A p a n e l of ove r 100 mi l l i on mo n i t o re d d e vi c e s, c urre ntl y t he l a rg e s t p ane l i n the i nd ustry 2. Lo c a l i n t e rne t se rvi c e p rovi d ers ( I SP s ) l oc ate d i n many d i f f e rent c o u n t ri e s 3. Ou r w e b c raw l e rs that sc an ev ery p u b l i c w e b si te to c re ate a hi ghly a c c u ra t e map of the d i gi tal wo rld 4. H u n d re d s of thousand s of d i re c t me asure me nt sourc e s f ro m w e bsi te s and ap p s that are] c o n n e c t e d w i th us d i re c tl y

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