Retail Observer

RETAILOBSERVER.COM MAY 2015 38 Elly Valas Retail Views Elly Valas is the Marketing Services Director for Nationwide Marketing Group. She can be reached at elly@ellyvalas.com or at 303-316-7569. Visit her website at www.ellyvalas.com. RO R ecent research conducted by Prosper Insights & Analytics for STORES magazine found that although consumers are feeling slightly better, they're still cautious and overall more frugal. The survey included the annual report on the most and least expendable products in the minds of consumers. • 45% of those polled said the current economy was still leading them to spend less. • Women are more inclined than men to do competitive shopping online, in newspapers and circulars. They are looking for more sales, using more coupons than men are. • Both women and men say they're dining out less frequently. • Phil Rist, executive vice president of Prosper reported "There was a popular expression some time ago, suggesting the only way someone would give up an item was if it was pried from their cold, dead hands. That's the sort of predilection consumers are showing for their mobile phones and devices. The data shows that U. S. consumers are still cautious about spending on most categories, but where it comes to technology, there's no sign of them cutting back." • The study also found, and it was quite predictable, that the youngest cohort were the most passionate about technology. They consider Internet access, video streaming and upgraded mobile devices to be untouchable expenses. • Those consumers in the 35 – 54-year-old cohort are most likely to be spending less. So what does this mean to you and how can you use the information to impact your business? First, everyone is looking for value. No matter how much people bemoan about the poor quality and lack of service at Wal-Mart, they still shop there. Your job is to tell your value story—"at Len's Local Appliance Outlet you get low prices, great products and 50 years of expertise." And then you have to deliver on that promise. No more pricing your merchandise at MSRP and negotiating with your customers. Don't fool yourself—today's savvy buyers don't like it, don't believe you and won't come back. Today's customer knows how much they're going to pay for your sofa, TV or refrigerator. They've done their homework and know as much or more about the competitive landscape as you do. People are dining out less. That doesn't mean they're eating less— rising obesity rates tell us otherwise. They're cooking in their kitchens and eating at home. It's a perfect storm for independents to gain market share in appliances. The biggest year for appliance sales was ten years ago and those aging products are due for replacement. Sears—once boasting over 40% of appliance sales—is losing ground quickly. Sears customers are used to getting served by the kind of knowledgeable professional associates most independents have. Add a good finance option and that customer is yours. Technology is today what plastics were in the time of The Graduate. Online purchasing of big ticket home goods is growing slowly but nearly every prospect goes to the web for information before buying. Your best opportunity to meet new customers is on the Internet. Get them to your site, wow them with a great online experience and you'll get them into your store. You can't just get by with a good home page—customers want product information, reviews about you and the goods you sell, pricing, and availability. Just like they look at online restaurant reviews when eating out, they want to know what other customers think about you—your value proposition, your staff, your product knowledge, your delivery service—before they'll even give you a chance. And if your previous core 35-54-year-old customer is buying less, you'll have to get to younger and older consumers. Baby Boomers are downsizing their homes, moving to new parts of the country and buying second homes. Gen Xers are starting their families, buying first homes and starting to choose where they'll buy products for the rest of their lives. Bring on young associates, grill them for new ideas, find out what their friends like and dislike. Yes, the economy is improving and consumers are more confident. At the same time, though, they're not buying with the wild abandon we saw ten years ago. They're careful, choosy, and knowledgeable. There is no low hanging fruit—every sale has to be earned. Those who adapt to these sea of changes most quickly will be well rewarded. THE CAUTIOUSLY OPTIM ISTIC CONSUM ER

• Cover