STORES Magazine - September 2008 - (Page 82)

CONSIDER THIS / LOEB RETAIL LETTER Copyright 2008 by Loeb Associates Inc. Used by permission. Retailing During a Consumer Recession BY WALTER LOEB Economists and politicians can debate the state of the broader economy, but there is no doubt in my mind that we are in a consumer recession. Consumers have lost much of their discretionary spending power since they have to allocate a greater portion of their budgets to pay for fuel, household energy and rising food prices. Some are worried about their jobs, since many companies have announced cutbacks in their employment ranks. Retailers have been trying tomer while she is in the store. It should not be bargain tato reach costumers who, in bles, but something innovative or interesting that would exrecent interviews, concede cite her. that they are spending very Retailers can make their stores more entertaining. A little on themselves — and Swiss company recently dressed its associates in opera when they are shopping, costumes. It was quite fun for everyone and customers they are looking for lower bought lots of merchandise during the event. prices. Stores are often I do not think Macy’s at Herald Square can dress everycherry-picked during their body in costumes, but its flower show is unrivaled; equally sale promotions; more of the exciting is the annual Thanksgiving Day Parade. These loss leaders sell quickly, types of activities bring more customers to Macy’s, and while other merchandise reother retailers should be equally inventive in their efforts to mains unsold. If that trend attract customers to their stores. continues, we will see an enWith the weak state of the U.S. dollar, our gateway destivironment with nothing but nations have become inundated with foreign shoppers — Walter F. Loeb is a New Yorksales, rendering fashion ofyet I have seen very few badges on salespeople indicating based consultant and member ferings limited and unprofthat they speak another language. These shoppers would of the NRF board of directors itable. be quite happy to find someone who spoke French, Gerwhose newsletter is published It is time for all retailers — man or Spanish. monthly in STORES. from Macy’s and Saks to Walmart and Target — to Online opportunities begin a campaign to motivate their customers to become Retailers also could use the Internet more effectively for more fashionable. I think a slogan like “Look smart for excellent payback. Companies like Toys “R” Us, Barnes & work” could define fashion for young customers. Emphasis Noble, Polo Factory Outlet, Lands’ End and others reach on smart dressing is important: If there is me frequently via e-mail and, increasingno fashion drive in many classifications ly, my cell phone. I believe that online then we will only see sales of safe mersales will increase 20 percent this year, chandise in black and white. No color and primarily in classifications such as no unusual garments would dominate the women’s apparel, children’s apparel, The retailer fashion scene. men’s shirts and ties, accessories, toys, hobbies, books, sports and fitness, is a born watches and jewelry, home and garden Creativity in selling optimist; and consumer packaged goods. There also has to be more in-store merhe must be The retailer is a born optimist; he must chandising. Displays have to be changed in order to be be in order to be successful. Right now, in frequently in order to generate fashion exthis hostile economic environment, I see citement among customers and associsuccessful. opportunities for retailers to be creative ates. and innovative. That will make them winLet us also revive the art of selling. I ners and create future opportunities for think we have forgotten how easy it is to growth. sell more merchandise to the same cus82 STORES / SEPTEMBER 2008 WWW.STORES.ORG http://WWW.STORES.ORG

Table of Contents Feed for the Digital Edition of STORES Magazine - September 2008

STORES Magazine - September 2008 Contents Executive Editor's Page President's Page Office Depot Unveils First Green Store Dunkin’ Donuts Debuts DDSMART What Shoppers Think 10 Things You May Have Missed Numbers Worth Counting Full Price/Markdown Retail People Are You a Facebook Fan? RFID Concept2Watch E-commerce Supply Chain Marketing ERP Credit Web Optimization LP Vantage Point Newsbeat Cover Story LP Program Building Biometrics Industry Perspective Customer Service Site Selection E-Commerce LOEB Retail Letter Arts Update Point of View NRF News Retail Crossword Retail Industry Calendar Last Laugh

STORES Magazine - September 2008

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