STORES Magazine - October 2008 - (Page 15)

As the economy rollercoasters, so, too, do shoppers’ credit card balances. The September Consumer Intentions and Actions Survey, conducted by BIGresearch, finds shoppers trying their best to stay ahead of credit card debt. A survey of more than 8,000 consumers finds 36 percent claiming to pay their credit card balances in full each month; nearly as many (34 percent) pay a portion of the balance. Only 13 percent admit to paying the minimum, while 18 percent say they don’t have a credit card. The data indicates that men (40 percent) are more inclined to pay a balance in full than women (32 percent); women (15 percent) are more likely than men (10 percent) to pay the minimum. And, not surprisingly, those with a household income of $50,000 or less are feeling the pinch more than others when it comes to paying down their credit card balances. Among these consumers, 28 percent pay balances in full, 31 percent pay a portion of the debt and 15 percent can only afford to pay the minimum. Shoppers were asked if they were using their credit cards more than they did at this time last year for the purchase of numerous items. As it turns out, 25 percent are using credit more frequently to buy gas; 18 percent rely on credit more than they did a year ago to buy groceries; and 13 percent are more inclined to use a credit card when dining out. In fact, shoppers indicated that they are using credit more frequently for each of the 18 categories listed than they were a year ago. The segments of the population that appear to have increased credit card usage most dramatically are adults 18 to 24 years old and those ages 35 to 44. Each of these groups reported double-digit increases in six categories. Among the younger group, credit cards are being used more frequently to buy gas, groceries, dining out, apparel, entertainment and cell phones. The 35- to 44-year-old crowd reports similar increases in the first four categories, but substitutes auto repairs and household items for entertainment and cell phones. Thomas Bata Passes Away Thomas Bata, a self-described “shoe salesman” who built a global footwear empire, passed away last month, just two weeks shy of his 94th birthday. Bata built the Bata Shoe Organization into the world’s largest shoe manufacturer, employing some 70,000 people. He is remembered as a creative entrepreneur and a business statesman whose management style — along with the corporate culture — was steeped in family tradition. He received the NRF Distinguished Service Award in 2006. The Bata shoe business traces its roots back to Czechoslovakia. Originally founded by Tom’s father, the company was transplanted from the Czech city of Zlin to Canada in the 1930s, just ahead of the Nazi occupation. The business grew rapidly in the 1940s and 1950s by setting up vertically-integrated operations across Asia, Africa and Latin America. WWW.STORES.ORG Today, the company is headquartered in Lausanne, Switzerland, and led by Tom Bata, Jr. Bagging the Competition Walmart is arguably the most analyzed retailer in the world. Recently, consumer and media research firm Scarborough Research unearthed some revealing data about the Bentonville, Ark., discounter’s grocery business. According to analysis of consumer shopping data, the number of grocery shoppers at domestic Walmart Supercenters has grown 61 percent since 2002. Some 20 percent — 1 out of 5 grocery shoppers — cite either Walmart Su- ➔ STORES / OCTOBER 2008 15 http://WWW.STORES.ORG

Table of Contents for the Digital Edition of STORES Magazine - October 2008

STORES Magazine - October 2008
Executive Editor's Page
President's Page
Force of a Different Collar
What Shoppers Think
Bagging the Competition
10 Things You May Have Missed
Numbers Worth Counting
Full Price/Markdown
Retail People
Favorite 50
Sticky Strategies for Retention
Business Intelligence
NRFtech Wrap-up
Warehouse Systems
Selling Tools
Supply Chain
LOEB Retail Letter
Arts Update
Point of View
NRF News
Retail Crossword
Retail Industry Calendar
Last Laugh

STORES Magazine - October 2008