Getting More That What You Pay For: Stores New Marketing Tactics

Money is tight and while people are becoming more and more reluctant to open their wallets, maybe they should reconsider. Stores, like the one shown left, are grasping for customers, and as the economy continues in its downward spiral they are starting to think of new, more cost efficient ways to get foot traffic into their businesses most of which include give-aways, parties, or even free career advice classes. So while wallets are closing and staying closed, you may want to think again. A customer could get more than what they pay for when walking into a store today. All types of clothing stores, from small privately owned boutiques to almost all the major department stores have been affected negatively from the worst recession since the Great Depression. These falling net incomes are forcing stores to re-think and re-strategize in order to stay afloat during these hard times. In an article titled In the Money: Department Stores Re-size for Recession it states, “…department stores and specialty clothing retailers are ultimately in the same boat during this financial crisis, because both face the challenge of getting consumers through the door during a difficult retail environment.” So what are some of these stores doing in order to maintain customers? The answers came from examining two separate posts, one from “The Cut”, New York Magazine’s online blog titled "Hey Men, Boutiques Want to Get You Liquored Up ", and the other an article from msnbc.com’s business section, "Small Retailers Get Creative to Keep Shoppers". Both posts talk about the lengths which stores are willing to go in order to maintain clients. In examining the two posts I was able to compare the differing marketing tactics for women’s stores as opposed to stores catering primarily to men. Some of these tactics are surprising and seem to be novel, including free alcohol, tarot card readings, hot dogs, and even blood pressure screenings. Although some of these strategies may get more people to the store it remains to be seen whether that can equate to higher sales. This has not stopped stores from trying though, and in this economy doing something is better than nothing. My responses to both posts can be found here and also at their sites.

"Hey Men, Boutiques Want to Get You Liquored Up"
Comments

It is no surprise that a good way to entice men is with liquor and a big screen TV. It seems only a matter of time before retailers caught on to this idea, and it appears to be a great one in getting men to stay in a store. While it is not necessarily new; high-end women’s boutiques have been giving out champagne long before the recession, this is at a whole new level. Some stores have a full bar in hopes of luring men with scotch, beer, or anything else they may desire. Men, although there are exceptions, are notorious for their dislike in lingering in stores and shopping around for clothes. This marketing tactic is cunningly smart. Not only does it make men want to hang around a little longer, but also may lower inhibitions to spending money. For example, in the Wall Street Journal article “Belly Up to the Bar and Buy Some Jeans” it quotes one customer saying the beer did make him relaxed and also made him stay in the store longer. Ultimately, this customer did walk away with a pair of $200 pants. However, there can be other negative implications that seem to be overlooked. In your post, the main point is that you feel women’s stores should also carry alcoholic beverages to attract and keep women shopping. While this tactic may be successful in stores for both genders there are some problems which were not addressed. Firstly, retail employees are not trained in checking ID’s in order to ensure they are only serving customers who are over 21. Because of this there could be legal implications if the store is caught serving minors or simply not checking for identification. It is an added training skill that must be implemented in order for this marketing tactic to be safe and legal. However, even in these steps are taken serving alcohol may still be breaking the rules. In an article titled “Bubbly May Get Boot as Shops Face Penalties for Serving Alcohol” it explains, “It's illegal, if you're not a licensed premise, to serve alcohol.” Although stores are able to get around the rules by having special events or private functions where alcohol is legal, it is not legal to simply give out alcohol every day of the week while business is being conducted. In general, the law seems to look the other way, but is this practice safe? With untrained staff who are ultimately breaking the law this might not be worth the cash it may or may not bring to the store.

"Small Retailers Get Creative to Keep Shoppers"
Comments

What won’t stores do to maintain customers in this economy? Your article really shed light on the extent and effort clothing stores are willing to go to stay in business during these times. Although some ideas are fun and innovative, like getting a tarot card reader or free knitting workshops, one has to ask themselves is this really going to work. While the article states it does bring a sense of community to the businesses does this translate to dollars? It seems to me like an added expense that might not have any return. And during a time in the economy where every expense should be spared it appears almost fruitless unless it is truly helping the business. In the article it states, “Do these perks translate into dollars? Not necessarily — and it costs money to pay for entertainment and refreshments. Still, shop owners think it’s worth a try.” My question is why? Coming from a small town that has a very strong sense of community I do understand these tactics in order to engage in personal connections with potential clients, but as the article points out it doesn’t really seem to be doing what it is supposed to be doing; making money. In your article it says a “neighborhood walk sponsored by local businesses also helped” although it goes on to say, “It helped bring people in…” Nowhere did it mention whether the increase in foot traffic correlated into an increase in sales. So, although I commend these businesses to try novel ideas to keep coming to their stores the costs could out weigh the benefits when looking at the bottom line. Clothing stores should continue these tactics as long as they keep their expectations in check. These parties and workshops may be good for getting people in the store, but do little to make people buy anything.