Retail Industry
Industry: Email Alert RSS FeedLoyalty fades when confronted with convenience, better selection - Guest Column - Brief Article
DSN Retailing Today, Feb 25, 2002 by Carolyn Setlow
Women are trading retail store loyalty for convenience. According to Roper research, in all eight store categories polled, including discount stores, the percentage of women who say they "almost always go to the same store or chain" has declined since 1997. The greatest loyalty is to drugstores (50%), which also suffered the greatest point differential (down eight points since 1997), followed by supermarkets (44%, also down eight points). At 28%, discount stores are also showing a decline (down five points).
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The good news about these numbers is they represent the proverbial call to action. To get even the sometime loyalty of today's busy woman, smart retailers must offer what women want--simpler, more convenient shopping options. Factors such as proximity, fast checkout and ease of finding merchandise now supercede loyalty when a woman chooses a shopping venue. The savvy retailer keys into what women are looking for and delivers these preferences. Unless you are in the planning stage, there is very little you can do about location, but you can follow through on the other items on women's wish lists.
When it comes to discount stores, roughly 3-out-of-10 women are looking for a fast checkout (30%), one-quarter (25%) want ease of finding merchandise and 44% say proximity is among the most important factors in deciding where to shop.
As a point of comparison, almost one-quarter of drugstore shoppers (22%) and 46% of those at grocery stores are seeking rapid checkout. Almost one-third of grocery shoppers (34%) and 16% of drugstore customers want to find merchandise easily. More than half of drugstore shoppers (53%) and more than two-thirds of grocery customers (67%) consider location.
If space permits, offer shoppers wide, inviting aisles with neatly arranged merchandise. Consider assigning personnel to periodically straighten and rearrange merchandise. Provide copies of the store layout at each entrance and throughout the store so shoppers do not have to locate an employee to find out where items are. If you have enough personnel, make sure there are adequate cashiers and baggers at the checkouts. Some stores promise to put on extra cashiers if lines exceed a certain number of people.
In your quest to lure shoppers into the store, you may want to conduct a survey pinpointing what the majority of your customers find appealing in a "must-go-back-to" location. Poll people in the store, with your bills, whenever they call for information or online if you have a Web presence. These last two suggestions (a guarantee of short lines and a poll on "It's your shopping place. What do you want?") are themes that can be featured in your advertising and marketing, as well.
Since women are usually the primary shoppers in the family for most household goods, it is probably most important to appeal to them. Not surprisingly, we have learned women and men generally have different buying styles. Women are more likely to be "bargain" hunters than men, always looking to buy things on sale (10 points higher than men) and feeling really satisfied when they get a good deal (seven points higher than men).
However, they also like to be impulsive and indulgent when the right item comes along--"I often come out of the store with things I didn't intend to buy" (12 points higher than men) and "It makes me happy to buy something on a whim or fancy" (four points higher than men). With this in mind, sale and impulse items should prove equally effective when positioned in center islands and near the checkouts.
Loyalty is no longer a given. Retailers have to work for it. Knowing what women want is the key to success.
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