DEC
2008
In good times or bad, a customer database is a license to do business.
Hub,
December 8, 2008 —
Research indicates that during the last two recessions (1990-91 and 2000-01), growth in every retail sector slowed. According to the McKinsey Quarterly, 93 percent of retailers surveyed experienced slowing revenue growth in one of the recessions and 59 percent found it true in both.
Unfortunately, it also takes retailers longer to benefit from the turnaround when it does happen. The average retail growth rate in the year of recovery in both 1991 and 2001 was just 0.3 percent.
Most of us start to hunker down and take a defensive approach to a recession. Obviously cutting costs where possible is common sense. But when it comes to marketing at retail, cutting back is a self-fulfilling prophecy to 0.3 growth.
During previous recessions, advertising,... continue reading
NOV
2008
YouGovPolimetrix places AIG at bottom of insurance heap
Adweek,
November 4, 2008 —
A recent survey by YouGovPolimetrix revealed that the slumping economy is having a significant impact on how consumers perceive brand value. Budget brands like Wal-Mart and Old Navy were ranked highest by consumers, while more upscale brands and financial services firms ranked lowest, reflecting a loss of consumer confidence.
OCT
2008
Uniform Approach Didn't Cut It; Unsold Mowers in Arizona, Too Few Power Tools Out West
Wall Street Journal,
October 7, 2008 —
Shortly after taking command of Home Depot Inc. in early 2007, Frank Blake found a pyramid of riding lawn mowers outside a store in Arizona, where lush lawns are uncommon. It turned out the store had sold only one such mower in two years. Then, he learned that the retailer was chronically short of Makita power tools on the West Coast, where they sell particularly well.
Mr. Blake ordered changes in Home Depot's purchasing system, which had favored national uniformity at the expense of local customer preferences... The shift in Home Depot's buying patterns highlights a tricky problem for national retailers: balancing local demand with national efficiency. In Home Depot's case, the new, more targeted buying has helped lower merchandise costs by reducing... continue reading
