NEW YORK: A bag from Hermes,
Jimmy Choo shoes and a T-shirt from… Target. That’s the shopping
strategy that well-to-do female shoppers may adopt in 2008 and beyond, according
to a panel at the National Retail Federation conference on
Tuesday.
Economic troubles such as high energy costs have crept into
the lives of women with an annual household income of over $100,000 and their
confidence in the US economy’s health plunged to a two-year low in
December, according to a survey by market research firm BIGresearch released at
the conference.
So women are making changes in the way they shop.
They are going to stores closer to home and making fewer trips. And they are
turning into serious bargain hunters. Even those with a love for luxury brands
are not hesitating to buy items on sale or are ‘trading down’ and
shopping at discount stores like Target.
“They will pay for
something if they really want it,†said Robin Lewis, head of Retail
Vertical at Goldman Sachs’ subsidiary Vantage Marketplace. “But they
won’t pay a penny more than what they can see it is
worth.â€
To that end, almost a third of women who shopped at
Bergdorf Goodman, Neiman Marcus or Saks in the last three months also shopped at
Target, while 11.6% of them went to Wal-Mart Stores, the survey
found.
About 71.1% of women with household incomes of over $150,000
who were surveyed, felt that price does not make a brand. That means women, who
normally dream of buying a Chanel or Christian Dior product, would not hesitate
to buy an item at a discount retailer if the quality and variety appealed to
them. “It’s all about the product,†said Janet Carr, vice
president of Strategy and Consumer Insights at Coach.
Nearly 41% of
women surveyed said they have become more practical and realistic about their
purchases over the past six months. In that period, several US retailers took
hits to sales as higher food and energy costs, a slow housing market and credit
issues cornered consumers into spending less.
Luxury retailers have
also begun showing signs of stress. Last week, jeweler Tiffany said its US
same-store sales fell 2%, citing a cutback in consumer spending. That data
spooked investors and raised fresh doubts about luxury sector’s
resilience.
Still, high-end retailers have plenty of opportunity for
growth and polishing their online presence could be one, the panelists said.
“It is a great way to market to (women),†Coach’s Carr said.
“You can bring her into the store. Bringing her into the store means you
have a chance to sell something. Now you’ve got her.â€
Tags:
bergdorf goodman,
consumer spending,
energy costs,
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