4.16.24 21st Century Movements for Black Lives.pptx
How Has the Economy Affected the Retail Industry
1. How Has the
Economy Affected
the Retail Industry?
2. Retail Industry Review
• 2007 was the start
– 40% of consumers were affected in the first year
• 2008 Brand Loyalty – Thrown out the window
– March 2008 – 67% of consumers bought the brand they
wanted
– March 2010 - %57 of consumers did the same
• “2010 Great American Pantry Study”
– 93% Will still spend cautiously
– 81% Find it fun to see how much they can save
3. Introduction
• How the economy has affected the retail
industry
• Created a 15 question survey
– Analyzed via SurveyMonkey.com
• Sample 4 local malls
– Within a 20 mile radius of Lasell College
– 88 Retail stores
• Distributed surveys to each manager
– Personal interview
4. Objectives
What is the affect of the economy on…….
• hiring practices/ expansion and downsizing
• promotional methods/ pricing strategies
• clothing lines
• consumer traffic
• competition
….in men and women’s retail stores?
5. Sampling
• Clothing stores in the retail industry
• Survey
• High and low end retailers
• 4 malls in the Boston area
• Phone surveys V.S. Walk in surveys
6. Methodology
• Our Objectives
• Split into Groups
• Assigned 12-14 Stores Each
• Designated Malls
• Create Surveys
• Distribute Surveys
• Analyze Results
7. Methodology
• Face to face
• Managers
• Explaining our research
• Confidential & Anonymous
• Timing = Key
8. Data Analysis
•hiring practices/ expansion and downsizing
•promotional methods/ pricing strategies
•clothing lines
•consumer traffic
•competition
9. Hiring Practices Expansion/Downsizing
Which has occurred more recently within the last three years for any of
your greater Boston Locations?
A new store has opened.
An existing store has closed.
Neither
− All 47 participants responded
− 46.8% (22) = Neither
− 31.9% (15) = New store has opened
− 21.3% (10) = Existing store has closed
10. Are you currently:
Hiring new employee's?
Letting employee’s go?
Neither?
– 30 participants responded
– All said they were hiring
– Managers = 14 checks
– Sales associates = 27 checks
– Cashiers = 12 checks
Approximately how many?
1-3
4-7 − Follow up question
− 30% (9) = 1-3
8-10 − 26.7% (7) = 4-7
>10 − 10.0% (3) = 8-10
− 33.3% (10) = >10
11. Promotional Methods
33 % %-Discounts
22% Both
22% None
11% BOGO
11% Other
12. Promotions/Media Outlets
1-5 Sales/ Year
May be controlled by Corporate
In-Store = Online
Technology = Less $ cost
13. Pricing Strategy
Waiting period remained the same
1-4 Months Wait to Mark Down
Seasonal Changes
Quarterly Sales
14. Inventory
The poor conditions of the economy have had a negative
effect on our inventory levels.
•37% Slightly Agree
•26.1% Strongly Disagree
•61.9% in total Agree
•39.1% in total Disagree
15. Clothing Lines
Since the economic downturn, has there been increase, decrease or no
change in in new clothing lines entering your store?
•43.2% Have seen an increase
•11.4% Have seen a decrease
•38.6% Have seen no change
•6.8% Responded other
16. Consumer Traffic
For every 10 customers that come into your store, how many of them actually
make a purchase?
0-2
3-5
6-8
All 10
− 42 participants responded
− 35.7% (15) = 0-2
− 40.5% (17) = 3-5
− 23.8% (10) = 6-8
− 0% (0) = All 10
17. What is the average purchase total of the customers from question 11?
$25 and lower
$25-$50
$50-$100
$100 and higher
Other
− Follow up question
− 0.0% (0) = $25 and lower
− 14.3% (6) = $25-$50
− 31.0% (13) = $50-$100
− 52.4% (22) = $100 and higher
− 2.4% (1) = Other
18. Competition
Quality 55.6%
$ to go a long way
Price 22.2%
Bad economy don’t want
to spend too much
Want quality at the same time
Other 11.1%
Brand name
Loyalty to store
Quality?
Bottom two results:
Location
1 response
Shopping mall no competitive
advantage
Variety
offer the same clothes with
similar clothing lines
isn’t much differentiation
19. Competition
• Disagree
39.1% (18)
• Slightly Disagree
23.9% (11)
• Slightly Agree
17.4% (8)
* The top three
answers only had a
7 response
difference each
20. Competition
• Slightly agreed (11)
responses making up
23.9%
• Slightly disagree (10)
at 21.7%.
• Very close results
• Possible confusion to the
question?
21. Conclusion
Retail Stores Are:
• Hiring, Not Firing
– More than 10 people
– Stores not Closing or Opening
• Using Pricing Promotions
– 1-5 Sales/Year
– In Store & Online Promotions
– Wait 1-4 Months to Mark Items Down
• Agreeing Economy = Negative on Inventory
– No change/ Increase in inventory levels. ???
22. Conclusion
Retail Stores Are:
• Making Less Sales
– 0-5 of 10 customers make a purchase
– Purchase Total = $100+
• Focusing on Quality
– Quality is most competitive advantage
• Enjoy location in the Mall
– Disagree they’d be more competitive elsewhere
• Disagree & Agree on Recession
– Recession= Bigger threat to stores than competition
24. • How the retail industry • Learned from trial and
is affected by the error.
economy
• Teamwork
• How to conduct
• Communication
research.
• Prepared us for the
• Challenging and
workplace.
Beneficial.
25. References
• "Economy Permanently Changes Shopping Habits -
Retailer Daily." Retailer Daily: News & Data for
Retailers, Ecommerce Managers, Their Suppliers and
Partners. Web. 24 Feb. 2011.
<http://www.retailerdaily.com/entry/52535/econom
y-changes-shopping-habits/>.