STORES Magazine - March 2009 - (Page 10)

CONSIDER THIS / PRESIDENT’S PAGE Addressing the Economy BY TRACY MULLIN The Voice of Retail Worldwide STORES is published by NRF Enterprises Inc., rom conversations in executive offices to those at the kitchen table, the economy has been the 800-pound gorilla in the room for much of the past year. While many companies tried to dance around this unwelcome guest at first, they have recently begun tackling the economy head-on in advertising and marketing efforts. It’s a smart move. With the understanding that America’s current state of affairs is a real issue for consumers, many retailers are operating under the assumption that it’s better to address the economy than run from it. Retailers are using everything from TV ads to public relations to demonstrate empathy and understanding at a time when shoppers need it most. Target’s “Brand New Day” television advertisements are one example. The ads highlight today’s nesting trend by featuring people enjoying “the new movie night” — not at theaters but in their living room — and “the new gym” with a woman exercising at home. Life may not be the same, the ads seem to say, but it can still be enjoyed. While Target is acknowledging this shift in shopper mindsets, it also reminds people looking to scale back that the company sells everything from hair clippers to bicycles. References to the economy were even present in this year’s Super Bowl ads. From an office worker getting tossed out a window after recommending the company balance its budget by cutting back on Bud Light to a conversation between two toddlers about the benefits of using E*TRADE in this economy, references to America’s current state of affairs were frequent. By choosing to acknowledge instead of ignore the economy, retailers are able to show that they sympathize with customers — and gain extra good will along the way. Last month, Denny’s hit its own version of a Grand Slam by providing more than two million free breakfasts to Americans in need of some cheering up. QVC also hit a home run with a runway show during New York’s Fashion Week that introduced a new clothing line, acknowledging that people want real fashion, but real prices, too. It’s not only advertisements and savvy public relations that are getting the attention of shoppers. Kroger has ramped up its direct mail efforts and is using data from its loyalty program to send coupons to specific customers. CVS also relies on its loyalty program to provide coupons and promotions to customers at the point of sale. With more than one-third of shoppers coping with the economy by using coupons more frequently, those strategies are bound to pay off. What many retailers have learned is that acknowledging the 800-pound gorilla in the room can lead to higher levels of trust and loyalty among shoppers. This is a smart move because, until this beast goes away, it will be difficult to get a word in edgewise. F a subsidiary of National Retail Federation Inc., 325 7th St. NW, Washington, D.C. 20004. (202) 783-7971 FAX (202) 737-2849 CHAIRMAN OF THE BOARD Myron E. (Mike) Ullman, III, Chairman and CEO, J.C. Penney Company, Inc. VICE CHAIRMEN Philip L. Francis, Chairman and CEO, PetSmart, Inc. Stephen I. Sadove, Chairman and CEO, Saks Incorporated PRESIDENT & CEO Tracy Mullin SENIOR VICE PRESIDENTS Denise Brasse, Industry Relations Mallory B. Duncan, General Counsel Michael G. Gatti, Communications David Hogan, Retail Operations and CIO Carleen C. Kohut, CFO Steven J. Pfister, Government Relations NRF Divisions Association for Retail Technology Standards EXECUTIVE DIRECTOR Richard E. Mader (202) 626-8140 National Council of Chain Restaurants PRESIDENT John R. (Jack) Whipple (202) 626-8183 FAX: (202) 626-8185 Retail Advertising & Marketing Association EXECUTIVE DIRECTOR Michael G. Gatti (202) 626-8117 FAX: (202) 737-2849 EXECUTIVE DIRECTOR Scott Silverman (202) 626-8192 FAX: (202) 626-8191 325 7th Street, NW Suite 1100 Washington, D.C. 20004 All articles published in this magazine represent solely the individual opinions of the writers, and not necessarily those of the National Retail Federation. 10 STORES / MARCH 2009 WWW.STORES.ORG http://shop.org http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - March 2009

STORES Magazine - March 2009 Contents Executive Editor's Page President's Page Movers and Spenders What Shoppers Think Take Your Laundry Online 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Luxury for Less Q & A CONCEPT2WATCH Checkout Management Online Entrepreneurs Sustainability POS Online Strategy Online Scheduling SaaS Online Marketing Merchandise Security PCI Compliance LPinformation Supplier Directory Exception Reporting Industry Perspective Theft Research LOEB Retail Letter ARTS Update Point of View NRF News Retail Crossword Retail Industry Calendar End Cap

STORES Magazine - March 2009

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