As a retailer, wouldn't you love to have consumers say your store is the one they couldn't live without?
A study by Zogby Interactive found the bragging rights to that claim go to Wal-Mart Stores Inc. Twenty-six percent of shoppers said Wal-Mart is the place they'd choose if they could only shop one store for the rest of their lives. Target Corp. was close behind at 22 percent. Zogby polled 24,964 voters with a margin of error of +/-0.6.Some good news for department stores — Macy's Inc. was third. Costco Wholesale Corp. ranked fourth, followed by a three-way tie with Sears Roebuck and Co., J.C. Penney Co. Inc. and Kohl's Corp.
One surprise — not a single drugstore made the ranking. Wal-Mart's low prices were the main appeal, and not surprisingly, the chain appeals to lower-income households and those that are politically conservative. Target's demographics skew younger and better educated. They are more liberal and most likely supported President Obama versus his opponent, John McCain, who was the traditional Wal-Mart loyalist.
Costco has a stranglehold on those in the Western U.S. Sears customers tend to be older and more likely male. According to the survey, Sears has defied the expectations of many, and, for now, doesn't look like a company on the verge of demise. In a time when money is tight, consumers aren't looking for the fancy. They want utility, and Plain Jane retailer Sears is looking better, said the study. Sears is venturing more into beauty and that could be a good move.
More good news for many of these merchants comes from a report that says the industry's sweeping retrenchment is creating upward of $20 billion in sales opportunities for those who survive. Wal-Mart, Target, Kohl's, Macy's and J.C. Penney are among those that could be beneficiaries, according to Deutsche Bank. Companies that have many freestanding stores, like Kohl's, as opposed to being largely mall-based, will likely pick up greater share because of shifting trends in consumers' shopping habits.
Another study, this one from WSL Strategic Retail called How America Shops, says that "The New Shopping Order" has arrived. The study suggests that a sale is not a long-term value strategy. Here's the rub, the study suggested: once you've given shoppers everything in your discount arsenal, what's left? How do they know what real value is any more? Why should they trust you? The study warns that retailers, especially department stores, must not risk the "disenchantment of core shoppers."
The message from these studies is simple - retailers (and manufacturers) need to understand their core shoppers more than ever in this economic climate. They need to maintain, but also reach for new ones. And, drugstore chains need to find a way to make their stores more important in consumers' minds.
People, Places and Things
A few words with Grant Berry, creator and founder of Styli-Style. Berry is no stranger to the beauty business, having launched Pirate Cosmetics in the Eighties and Styli-Style in the Nineties. He sees sweeping changes in the nature of the business.
WWDBeautyNews: What's happening in the market?
Grant Berry: The old 80-20 [20 percent of items produce 80 percent of sales] doesn't work anymore. Retailers just don't have the space to present all those items. We've cut back on our line to present the bestsellers.
WWDBeautyNews: Tell us about new fixtures.
G.B.: We have a pod system called Styli pods that showcase our innovative products, but can be easily used on counters or in the display unit. We also have more space to communicate product descriptions and our testers and item numbers [on the packaging] are easy to see.
What's In Store
Sephora Goes for Three: Sephora plans to open a three-story unit in Manhattan's Times Square. The store is expected to feature an expanded product mix not found in existing units.
Saks Gets Aggressive: Saks advertised a get-$25-off-$100 beauty purchase online with free shipping to inspire sales.
“My personal philosophy to beauty is paying attention to oneself. I love to be outdoors, lots of fresh air, trying to take care of yourself as best you can. I always notice that comes through,” says Felicity Jones, the global face of @shiseido-owned @cledepeaubeauteus, which launches today. Head to WWD.com to read more about the actress’ love for beauty and how she prepared for her new role in “The Basis of Sex,” playing the young Ruth Bader Ginsburg. #wwdbeauty (📷: @dandoperalski)
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews