7/16/2006 Retail Notes
Gas prices, conflict in the Middle East, sales tax, rising interest rates, wildfires, foods with too much trans-fat, and hurricanes: we’re almost to the end of the second quarter in retail - anyone want to place bets on which of the preceeding things retailers will be blaming poor results on the most?
This week, it was revealed that Wal-Mart has loosened it’s policy on shoplifting (see: Wal-Mart relaxes no-tolerance shoplifting rules -NYT). This wasn’t a story that was not exactly meant to go public. The New York Times published a story with source documents given to them from the website WakeUpWalmart.com, with some interesting twists (see: CNN Ignores Labor Union Source of Wal-Mart Shoplifting Story). Wal-Mart themselves have publically responded to their public outing by saying “Don’t test it“. The National Association for Shoplifting Prevention and the National Crime Prevention Council have also issued a statement against the change in Wal-Mart policy.
Unfortunately for some, the exemption only applies to first time offenses under $25. You are still out of luck if you’re an off-duty police officer, shoplifting $258 worth of merchandise: not only will you get procescuted, but you will also probably lose your job.
Wal-Mart has brought themselves into a unique position by being the largest retailer in the world. Any- and everything that they do will be scrutinized in the media, even though a move like this simply brings Wal-Mart in line with most/many other retailers.
More coverage from bloggingstocks.com.
Great article in today’s Courier-Post, out of Cherry Hill, NJ, about the lessons that can be learned from the boardwalk in Seaside Heights, NJ: More the merrier in Seaside Heights. In a small area, competition for the same consumer will dictate prices, ideas, and customer service. Truth be told, I think Seaside (like most boardwalks in New Jersey), do a very good job at pleasing the customer and creating an affordable family athmosphere. There are lessons to be learned from the New Jersey boardwalk industry.
I never thought I’d say that there are business lessons to be learned from the same boardwalk that once hosted the MTV Beach House, with Carson Daly and Civ performing tracks off their ill-fated Thirteen Day Getaway.
Took a trip to Old Navy today and saw the start of the new Fall turnaround. I’ll post more about it tomorrow morning, but so far I am very impressed at the new merchandise I got to see today.
Finally, a trip through some blog posts that I enjoyed this week:
First, my new favorite blog is Finn at Lightheavyweight. He’s got great ideas about design, marketing, and business. He also points out some ways that retailers/businesses can learn from punk rock in his post Punk Rock Branding Lessons II. As an avid music fan myself, I think that there is a lot that businesses at large can learn from DIY/punk ethos without co-opting the identity of punk rock. Be honest, put the customer (fan) first, and work hard. Good points by Finn.
Katherine at Chain Store Age blog talks about recent trips to Ace Hardware and Home Depot. Guess which retailer provided the better customer service? Whenever I need something from a hardware store, I consistently get the better value and customer service from the local, independent or smaller chain stores than I do at Home Depot or Lowes. Although I’ve gotten better assistance at Lowes than Home Depot, nothing beats the level of service from the local True Value Hardware Stores.
Finally, as we go into the Back to School season, Ken at Retail Crier offers some advice for retailers looking to better market to younger crowds. Although some retailers are utilizing some of the points that he touches on, retail is still an industry that doesn’t seem to understand how to use technology to their marketing advantage. Forget podcasts - larger retailers haven’t even figured out how to use blogs to reach their core customer. With retail consolidation ruining customer relationships with retail brands, the technology we have at hand is perfect for allowing retailers to connect, one-on-one, with the people they want in their stores. Too bad they just don’t get it.
