Tuesday, March 31, 2009

The Thrill of the Hunt

There was a topic that at first was the front-runner for my paper, but I ended up deciding against it only a few days before our paper topic blogs were due. I originally wanted to explore customer experiences in regards to discount stores such as Ross, Marshall’s, and TJMaxx. Even though I decided to take a different route for my paper, I am still very interested in this topic, and felt that a free-response blog was an ideal outlet to at least scratch the surface as far as understanding how these stores work, what kind of experience they intend to deliver to their customers, and at the very least, to share what I feel when I shop in these stores.

When you walk in to these stores, you see row after row of plain metal clothing racks and rounders, aisles of shoe displays, stark white tile floors and fluorescent lighting. Once you dive into the racks, you find very little rhyme or reason in the organization of the clothing, other than signs hung from the ceiling that feature broad categories such as “pants” or “dresses.” To some, this minimalist setup may allude to a lack of forethought in creating an overall customer experience. However, I feel that such a setup is the most appropriate for this type of store, and that the experience it creates is quite intentional as well. Earlier in the semester we discussed a similar concept, in that Wal-Mart stores utilize similar minimalist displays. If a store image revolves around low prices, it only makes sense that the fixtures should follow suit.

Normally, the experience with a retail store is shaped by a mix of factors over a period of time, including internal thoughts and feelings, the atmosphere in the store, and customer service; just to name a few. From my personal experience, the experience in discount stores is predominantly created in the mind of the consumer, rather than from external factors. It is more likely that realizations in regard to external factors, such as minimalist displays fitting in with the concept of a discount store, occur in the unconscious. I do not go into these stores expecting the pristine customer service that I would expect from a store like Nordstrom or a small designer boutique. I go into a discount store with the mindset that I am going to find a great deal, thus, my customer experience stems from that positive mindset. This presents a key insight for stores in these categories. To some, discount prices signify lower quality, and that negative mindset is my best guess as to why many people don’t enjoy discount shopping like I do.

I initially grew interested in this topic when I thought about it in light of the current economic situation. Penny-pinching is necessary, as so many Americans are suffering huge hits to the value of their assets. Personally, I have always loved shopping at discount stores, even before the recession hit full-force. But there are many consumers who just recently found the value in forfeiting a luxurious experience in return for a great deal.

I found a USA Today article from February 2, 2008 entitled “More Shoppers Head to Discount Stores.” The article says that with a recession looming over their heads, many shoppers switched from stores like Macy’s, The Limited and Ann Taylor, to stores like Ross and Marshall’s. According to the International Council of Shopping Centers, “January retail sales were dismal across the board…it was the worst January showing since at least 1970.” Despite this fact, discounters such as Wal-Mart, Ross and TJMaxx outperformed higher-priced retail outlets, such as Nordstrom and Macy’s. Basically, it has taken a trying time to lead many consumers to suspend their negative associations with discount stores in pursuit of saving money.

It will be interesting to see how these trends are furthered (or hindered) as the economy continues to change. I am most interested to see how many discount store converts remain loyal to the stores, even if a positive economic change finds them in a financial position that allows them to return to stores like Macy’s and Nordstrom.

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