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.
EXCLUSIVE: @tomford is opening its first-ever beauty store. The boutique, which opens November 20 in London’s Covent Gardens, was designed with the over-the-top glam Ford is known for. Read the full story on WWD.com, link in bio. #wwdbeauty #wwdnews (📷: Simon Wagner) #TomFordBeauty
New York-based DJ @harleyvnewton threw a party to celebrate the holiday collection of her dress and pajama line @hvn at the Ladurée Beverly Hills. It Girls @katebosworth, @rashidajones and more joined in on the fun, which included cocktails, croque monsieur sandwiches and a photo booth. #wwdfashion (📷: Owen Kolasinski/BFA.com)
For the holidays, @Burberry partnered with 20-year-old artist @blondeymccoy on a series of three outdoor murals in downtown Manhattan. The murals are McCoy’s interpretation of a Christmas eve party, the idea of charity and the spirit of family. His third mural, pictured here, is the most personal. The image depicts McCoy’s grandparents and father in London’s Trafalgar Square in the Seventies. “My work often features lots of sentimental objects.” #wwdeye
For spring 2018, designers applied bold colors and cartoonish motifs on everything from sneakers and belts to key chains. See all the top men’s accessories trends on WWD.com. #wwdtrends (📷: George Chinsee; Prop Styling by @rnasti; Market Editor: @luiscampuzano)
The @dior-sponsored @guggenheim international gala pre-party has a history of drawing cool-girl musical acts to serenade the crowd –– and last night was no exception. @haimtheband performed songs both new and old, and lured a star-studded audience with the likes of Rebecca Hall, Kate Mara, Mamoudou Athie and more. #wwdeye (📷: @lexieblacklock)
In a partnership between the @metopera and the @englishnationalopera, “Marnie” was born. The opera, with costumes sponsored by @mrporterlive, is an adaptation of the 1961 thriller by Winston Graham. Arianne Phillips, who created the costumes, is no rookie: She’s styled Madonna for her tours and created costumes for a myriad of films in the past. Read WWD’s interview with Phillips, where she talks about her inspiration for the opera’s costumes on WWD.com #wwdfashion
@barneysnyc took a different approach to their holiday windows this year. Instead of Christmas decor, Barneys tapped @thehaasbrothers to tell a story of positivity, gratitude and inclusivity via heartwarming silliness and humor. “It’s about kids and it’s about coming together and being family and loving each other,” said Simon Haas. #wwdfashion (📷: @joshuascottphoto)
Beauty influencer @kandeejohnson makes her foray into hair care with a collaboration with @ogx_beauty — making it the first time that OGX has teamed up for a product creation. The collab includes shampoos and conditioners in three scents. At 39 and a mom, Johnson is a different profile than the emerging social media stars, but is considered one of the pioneers of the digital beauty influencer world. Read WWD’s interview with her on wwd.com, including the strangest beauty product she’s ever tried #wwdbeauty