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How Has the Economy Affected the Retail Industry

Anthony Liberatore
Anthony Liberatore

A detailed research study on the retail industry and how it was effected by the U.S. recession in 2008-2009.

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How Has the Economy Affected the Retail Industry?
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
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
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 womens retail stores?
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
Methodology Our Objectives Split into Groups Assigned 12-14 Stores Each Designated Malls Create Surveys Distribute Surveys Analyze Results
Methodology Face to face Managers Explaining our research Confidential & Anonymous Timing = Key
Data Analysis hiring practices/ expansion and downsizing promotional methods/ pricing strategies clothing lines consumer traffic competition
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
Are you currently: Hiring new employee's? Letting employees 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
Promotional Methods 33 % %-Discounts 22% Both 22% None 11% BOGO 11% Other
Promotions/Media Outlets 1-5 Sales/ Year May be controlled by Corporate In-Store = Online Technology = Less $ cost
Pricing Strategy Waiting period remained the same 1-4 Months Wait to Mark Down Seasonal Changes Quarterly Sales
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
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
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
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
Competition Quality 55.6% $ to go a long way Price 22.2% Bad economy dont 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 isnt much differentiation
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
Competition Slightly agreed (11) responses making up 23.9% Slightly disagree (10) at 21.7%. Very close results Possible confusion to the question?
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. ???
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 theyd be more competitive elsewhere Disagree & Agree on Recession Recession= Bigger threat to stores than competition
Limitations Facing rejection Incomplete surveys Group time management Store time management Phone Calls
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.
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/>.
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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 womens 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 employees 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 dont 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 isnt 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 theyd be more competitive elsewhere Disagree & Agree on Recession Recession= Bigger threat to stores than competition
  • 23. Limitations Facing rejection Incomplete surveys Group time management Store time management Phone Calls
  • 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/>.