Off-Pricers are in High Demand
More consumers are heading over to off-pricers for discounted prices these days. This recent article on RetailWire.com highlights how off-pricers like T.J. Maxx and Ross Stores are in high demand.
Not only though are people going to these stores but premium brands are beginning to dump a lot of their goods into these stores in order to get rid of inventory. Brian Tunick, an analyst at JP Morgan mentions, "You can clearly argue that the mid-tier department stores have no pricing integrity. Nothing goes out the door at full price, and that plays right into what the off-pricers do."
Product packaging afterlife is import to customers
Every three out of four consumers believe that it is important for a product's packaging to be recyclable. While sustainability of a package may not be a key selling point for consumers, it is one important factor that can alter their decision. Other key factors that weighed in on green packaging in consumers minds: recycled content (67 percent), refillable containers (63 percent), containers that are reusable for other purposes (60 percent) and compostables (51 percent).
For more on this topic, read the article here.
Selling Sugar: Bev Companies Rely on Nostalgia
Some Retailers Remain Solid through the Downturn Economy
This post on Retailwire.com discusses how even though many businesses are struggling through the recession, companies like Best Buy, Bed Bath & Beyond, Urban Outfitters and GameStop show promise that they will come out of the recession stronger than before.
Best Buy and Bed Bath & Beyond are looking particularly strong because they are avoiding one less competitor, Linens ‘n Things and Circuit City which both have faltered in the last couple of months. Urban Outfitters and GameStop have both seen an increase in total revenue from the previous year, and so seem to be in great shape.
What are other examples of chain stores that are doing well during this troubled state?
Shopping malls having to readjust to new shopper needs
In a recent article at the Pittsburgh Post-Gazette, they discuss how the malls in Pittsburgh are currently struggling with the current high amount of vacancies. Not only are they facing chains going out of business, such as Boscov's and KB Toys, but they also have less consumers who don't have expendable money for shopping. The article states that as many as 2000 to 3000 malls could go bankrupt this year.
As a result, malls are trying to find new ways to bring customers into their stores. Another potential option for under-performing malls could be a "de-malling," Mr. Ackerman said. That strategy, he said, has worked for North Hills Village, which has transformed itself over the years from a mall into a big box center that includes Best Buy, Target and Kohl's.
Read the article here. What do you think about the current state of malls? Will they find a way to readjust and make it through the current economic downturn?
Goodwill Sales Jump as Shoppers Race for Second-Hand Items
Kraft focusing on value proposition
Kraft is turning its focus to the tight shoppers of the economy. By changing their marketing strategy and making their products more widely available to they're customers, they're hoping to seen a continuing increase in the sales of their products. It's positioning its products as affordable and focusing their marketing efforts to emphasize their value. They've also expanded to sell their products at warehouses and dollar stores, who have seen an increase in sales during the current economic recession.
Source: Chicago Sun-Times
Questioning Microsoft’s Retail Strategy
New survey on shopper habits
Penn, Schoen & Berland Associates recently released a study showing the habits of shoppers when making purchasing decisions. It shows that a lot of consumers spend a significant amount of time online researching products before they decide to make a purchasing decision. It also shows that impulse buying occurs with smaller decisions such as restaurants, books and movies. Check out the full survey here.