Women Pay Full Price at Ann Taylor

It’s no secret customers like a good sale, but a recent finding from Ann Taylor shows items can still sell–even with a full-price sticker.

Ann Taylor reported a second-quarter profit and rising sales that even bested their lower-priced namesake Loft chain, which used to be a superstar during the recession. MarketWatch quotes the company saying gross-margin comps “dramatically outpaced” sales performance because of “the strength of the full-priced offering.”

It’s an encouraging report for women retailers. Often, women retailers feel the effects of a recession harder than other companies. When women oversee the household finances, they tend to cut back their own spending first. Plus, Ann Taylor, a retailer known for supplying professional clothing, found itself in a tricky situation trying to sell business clothes amidst job layoffs and potential job layoffs.

While the economy still isn’t in great shape, it’s nice to hear that retailers can do well in the present situation.

Recession Resets Consumers’ Priorities

What does the customer want? It’s a question retailers ask themselves all the time.

According to a recent study done by the Pew Research Center, consumer needs aren’t the same as they once were. According to the study, just 42 percent of Americans say they consider a television set a necessity, down from 52 percent just last year and 64 percent in 2006. The landline telephone also saw a dip in numbers. Of those polled, 62 percent still consider the landline phone a necessity, down from 68 percent in 2009.

“It’s true that in the digital era, consumers know they can watch a lot of television programming on their computers or smartphones,” Pew said. They also can make calls from their cell phones, a belief young people especially share. Fewer than half of those in the 18-29 age range consider a landline phone a necessity, but almost 60 percent think a cell phone is a must have item.

The report also shows people consider cars, clothes dryers, microwaves, home air conditioners and home PCs as less of a necessity than years prior.

“This suggests that the psyche of the American consumer is in a much different place now than it had been in the heady days before the recession.”

Still, just because more people categorize certain goods as a luxury over a necessity doesn’t mean the products aren’t selling. Retailers can take this information and apply what they know to their future marketing strategies.

Consumers Procrastinate Back-to-School Shopping

Retailers, take notes. American families are putting off their back-to-school shopping in an effort to make sure they’re getting the best deals.

Marshal Cohen, chief industry analyst with the NPD Group, told msnbc.com, “The consumer is not in any rush.”

An earnings call from Walmart indicated more shoppers are making their school supply purchases closer to their schools’ start dates. The National Retail Federation also predicted a quarter of school shoppers won’t begin their back-to-school shopping until one or two weeks before school begins. In some cases, families may even put the shopping off until later in the fall after seeing what’s in style and what students really need.

Still, the National Retail Federation predicts American families will eventually spend more on back-to-school supplies and clothes than last year. Back-to-college spending should remain about the same.

Meanwhile, retailers are offering deals for the customers now. Abercrombie & Fitch’s jeans are currently 40 percent off, Target is offering free shipping on $50 online purchases and Amazon.com has bargains on coffee makers, printers, microwaves and textbooks for college students.

Higher Gas Prices Affecting Consumer’s Lifestyles

According to BIGresearch, 86 percent of people are making adjustments to their lifestyles as a result of higher fuel costs, up from 76 percent at the same time last year.

Half of consumers surveyed are taking fewer trips to the store and shopping closer to home. More consumers are also leveraging the Internet. About ninety percent of shoppers said they research products online before buying in a store. They also use the internet to find store locations, hours and merchandise availability to prevent a wasted trip in the car.

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Tesco vs. Asda in Price War for Customers

U.K. supermarkets Tesco and Asda will cut the costs of thousands of everyday groceries in a move that threatens to start an all-out supermarket price war.

Grocery bills have sky rocketed in the past year and MySupermarket.co.uk claims that a typical family faces a £1,000 rise in the amount it spends in supermarkets over the coming year. 

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Service Workers See Decrease in Tips

Bartenders, waiters, hair stylists, cab drivers, and other workers who depend on tips for much of their income are seeing decreases in their tips as customers struggle in the current economy. There is some help at the state level. For instance, the Delaware Senate approved a bill this month that would raise the minimum wage for service workers and others who depend on tips.

What can service workers do to improve tips?

When times are tough, service workers need to pay special attention to customer service. Happy and satisfied customer can lead to higher tips.

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