Retail Contrarian

Would You Like a Velvet-Lined Heart-Shaped Box for this iPod?

Jeweler Tiffany & Co. recently announced weak comp store growth, due to a 2% decline in its U.S. stores. This news arrives despite a 10% increase in sales at their flagship New York store and 12% growth in international stores. With approximately 160 stores around the world (a third of which are in the U.S.), Tiffany is feeling the economic sting that many other high-ticket companies like American Express are beginning to experience. This indicates that the financial burdens of Americans are being shared across class lines, and aren’t just the worries of lower- to mid-income folks.

Of course, customers will continue to buy jewelry, and with Valentine’s Day fast approaching the need is about to reach its first spike of the year. However, recent positive sales figures from retailers like Best Buy, Toys R Us, and Barnes & Noble indicate that many of the sales over the end of the year were for more practical and less ornamental products. Flat screen HDTV sets, video game consoles, iPods, and GPS devices were among the season’s hottest sellers. While it’s easy to look at Tiffany’s dip in the U.S. as a harbinger of rough economic seas ahead, this is really a prime opportunity for independent and specialty stores to get creative and offer financially cautious customers the chance to think outside of the jewelry box for Valentine’s Day. A string of pearls or a Nintendo Wii? Hmmm…

It's Official - Retail Associates DO Make the Difference

Retailers in any industry should consider the findings of a new study by J.D. Power and Associates that measures customer satisfaction with midscale and upscale department stores.

The 2007 Department Store Experience Study measured four key factors in order of importance: sales staff, store facility, merchandise, and pricing in three upscale department stores in three metropolitan areas: Atlanta, LA, and New York.

Michael De Vere, executive director of emerging industries at J.D. Power and
Associates, confirmed the importance of the store staff on the customer’s experience and purchase intent.  He said, "While customers primarily decide where to shop based on appealing fashions and styles of merchandise, the sales staff has the greatest
influence on the overall department store experience."

So one could say that while customers might decide where to shop based on appealing fashions and styles of merchandise, the quality of the staff decides where those customers will make their purchases.  The same is true whether you sell wine, luggage, phones, handbags, pet supplies, jewelry. . . . you name it.

Customers decide to shop your store because of their interest in the products you sell. This doesn’t mean they will decide to buy.  Not a one of us sells anything that they must buy and they can’t find somewhere else.  This is why it is so vital that we engage every customer to understand their needs and recommend products for them to buy.  If we don’t make the sale, someone else will.

Forget customer service, it’s all about the experience.

Saks Fifth Avenue Gets It

According to Women's Wear Daily Saks Fifth Avenue is launching a new training program for their sales associates that has an emphasis on the importance of the "customer experience." Saks Fifth Avenue gets that customers who receive above average experiences are more likely to purchase, be a loyal customer, and advocate their store to family and friends. There is absolutely no better advocate than a customer who receives a memorable in-store experience. Period. It's beyond service, it's the experience.