Consumer Sentiments in 2013

Posted on April 4, 2013 by bermanevansretail
Check out this video clip from Prosper Business Development. It discusses how consumers feel about the economic environment and how it affects them.

 

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Declining Consumer Interest in Fast Fashion?

Posted on April 3, 2013 by bermanevansretail
Are consumers growing tired of “fast fashion,” quickly reproduced items sold at lower prices than the originals?
Roya Wolverson, reporting for Time, notes that: “Last year, discount meccas like Dollar General and Dollar Tree scrambled to expand into hundreds of new stores stuffed with standard recessionary fare: cheap made-in-China toys, synthetic Tee-shirts, and flimsy housewares. Fast-fashion retailers like H&M, Uniqlo, and Zara, which churn out the latest styles at record speed, also fared well. But there are signs that some consumers are growing weary of rickety furniture and clothing that falls out of fashion — or falls apart — after a single season.”
And consider that the much-publicized Target/Neiman Marcus holiday 2012 partnership did not meet expectations, as also reported by Time. 
Click the logo for more about fast fashion from Wolverson.

 

Posted in Part 3: Targeting Customers and Gathering Information, Part 6: Merchandise Management and Pricing, Part 7: Communicating with the Customer | Tagged , , , , , , , , , , , , , , , , | 1 Comment

Valuing Employees Through Good Pay

Posted on April 2, 2013 by bermanevansretail
Paying low wages to retail employees may keep costs down. But that does not mean this is necessarily the most profitable path to pursue.
Consider these observations from Sophie Quinton, writing for theatlanticcities.com:
“Many employers believe that one of the best ways to raise their profit margin is to cut labor costs. But companies like QuikTrip, the grocery store chain Trader Joe’s, and Costco Wholesale are proving that the decision to offer low wages is a choice, not an economic necessity. All three are low-cost retailers, a sector that is traditionally known for relying on part-time, low-paid employees. Yet these companies have all found that the act of valuing workers can pay off in the form of increased sales and productivity.”
“QuikTrip, the convenience store and gas station chain, offers entry-level employees an annual salary of around $40,000, plus benefits. Those high wages didn’t stop QuikTrip from prospering in a hostile economic climate. While other low-cost retailers spent the recession laying off staff and shuttering stores, QuikTrip expanded to its current 645 locations across 11 states.”
Click the image to read more.

 

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