Wal-Mart’s Earnings Suggest Wary Shoppers

The following is an excerpt from an article in 

The New York Times
Friday, August 17, 2012

Wal-Mart’s Earnings Suggest Wary Shoppers

By STEPHANIE CLIFFORD

Consumers in the United States still seem to be holding their breath.

Wal-Mart Stores, the nation’s largest retailer by far, reported quarterly results on Thursday that its executives said reflected a strained consumer, adding a sober note to more upbeat earnings reports from other retailers this week.

“Consumers aren’t panicked about the economy, but they are worried,” Craig Johnson, president of Customer Growth Partners, wrote in a research note. Sales growth for top retailers slowed to 3.4 percent in the second quarter of 2012 compared with a year ago, according to Mr. Johnson’s analysis. In the first quarter, sales rose 6.2 percent compared with a year earlier. (Thirty of the 40 major retailers he tracks have reported quarterly results so far.) Consumers “are still buying, but they’re buying less and they’re buying closer to need,” he wrote.

Wal-Mart’s results suggested that shoppers in the United States — particularly low- and middle-income shoppers — remained stretched thin and wary about splurging. Sales at the company’s stores open at least a year rose 2.2 percent in the United States, which was its fourth consecutive quarter of same-store sales growth domestically. However, executives said that did not mean the American shopper was feeling especially cheery.

“I don’t think the economy’s helping us,” Charles M. Holley Jr., Wal-Mart’s chief financial officer, said in a call with reporters. Customers are still very concerned about employment, gas prices and food inflation, he said. “If anything, our consumer’s probably being a little more stretched because of gas prices.”

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U.S. Stores Learn the Ropes of Shipping to Foreign Shoppers

Excerpt from an article in

The New York Times

Wednesday, March 21, 2012

U.S. Stores Learn the Ropes of Shipping to Foreign Shoppers

By STEPHANIE CLIFFORD

Macy’s has long marketed itself as a shopping destination for visitors to the United States. It offers a savings card with a 10 percent discount for foreign shoppers, custom programs for tour groups and travel agents, and a tourism Web site that lists shopping events and recommended hotels near Macy’s flagship stores.

But only last year did Macys.com — which shoppers worldwide can look at — offer overseas shipping.

“We were getting international traffic,” said Kent Anderson, president of Macys.com. “It was coming whether we were offering them, frankly, any realistic way to interact with the site or not.”

Macy’s is one of several retailers trying to extend its international presence to its Web operations by shipping overseas. In the last year, Williams-Sonoma, J. Crew, Aéropostale, Crate and Barrel and Lane Bryant have added international shipping to their Web sites, while Ann Taylor and Neiman Marcus are working on it.

Some of the retailers are meeting existing or anticipated overseas demand, while others are testing the waters before opening stores in other countries. Either way, they are discovering that shipping beyond the United States is not a simple undertaking.

“Typically the guys we’re talking to start off thinking they can toss it in a box and give it to U.P.S. or FedEx and hope it gets there,” said Michael DeSimone, chief executive of FiftyOne, a technology company that helps retailers add international shipping capabilities.

But there are problems with ordering systems, customs and postal fees, he said.

For example, many retailers do not have software in their warehouse management systems that recognizes foreign postal codes, which — unlike those in the United States — do not always have five digits.

“It sounds like a really stupid reason not to sell internationally,” Mr. DeSimone said, “but I can’t tell you how many times I’ve heard this was the biggest roadblock.”

The appeal to reaching customers in other countries is based largely on the popularity of mobile phone sales overseas. Forrester Research expects online retail sales in the Western Europe, Asia Pacific and Latin America regions to increase 67 percent from 2011 to 2015, compared with 42 percent for the United States.

And traffic to American Web sites from international visitors is already high.

Younger Shoppers Using Technology

Excerpt from an article in

The New York Times

Saturday, March 10, 2012

Younger Shoppers Using Technology, Not Salespeople

By STEPHANIE CLIFFORD

When Nadia Karim goes shopping, she doesn’t wait around for salespeople. She saves items from apps and Web sites on her cellphone as a shopping list. And as she browses one store — recently trying on Sam Edelman flats at Nordstrom — she uses the phone to check out styles at competitors like Macy’s.

“In all honesty, because I shop so much, I feel sometimes I know the brands better than some of the associates,” said Ms. Karim, 26, an analyst at Intel in Phoenix.

For a generation of shoppers raised on Google and e-commerce, the answer to “Can I help you?” is increasingly a firm “no,” even at retailers like Nordstrom that have built their reputations around customer service.

But instead of getting defensive, some stores and brands are embracing the change by creating new personal touches that feature gadgets rather than a doting sales staff. Bobbi Brown has touch-screen televisions to demonstrate the perfect smoky eye, something that was once the exclusive domain of makeup artists. The basketball star LeBron James’s shoe store in Miami has 50 iPads to describe its merchandise. Macy’s is testing cosmetics stations where tablets offer reviews and tips. And at C. Wonder, shoppers use a touchpad to personalize the lighting and music in dressing rooms (there is also a button in case, olden-days style, they need to call for help).

The self-service theme, which started years ago with checkout at groceries, has progressed to the point where shoppers can navigate entire stores without once having to say, “Just looking, thanks.”

Companies are adding the technology now because it has gotten cheap enough to make it feasible and because Apple and other tablet and touch-screen makers are increasing their sales efforts. Stores also don’t want to risk losing those customers who are not content shopping from home but nonetheless prefer Pinterest recommendations, Zappos reviews and Fashism feedback to interacting with someone behind the counter.