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Aug15
Retailers Report A Decline in Sales: What's Really The Problem?
Business Week reports that many of the popular teenage shopping destinations reported lower than expected sales for the second quarter.  My Alma Mater, Wet Seal, Inc. (WTSLA), posted a 7.2% decline.  Many of the retailers blamed delayed back-to-school schedule and the weather for these lack of sales. 

Weather?  Isn't it always hot during this time every year? 

Why not blame the lack of service that customers get when they shop in these retail stores nowadays?  There once was a time when there were greeters in front of the Ambercrombie & Fitch (ANF) stores.  Now we're lucky if we even get a "Hi" during a visit. Retail consultant, Patricia Pao, says something very important: "Kids are rediscovering one-stop shopping, especially if there's variety, sales, and service."  Friends, the key word here is service
shopping.jpg
Many times teenagers are ignored in the store when they're shopping by themselves.  Salespeople blow them off thinking they don't have the money to spend - they're just teenagers, right?  Well, I can't tell you how many times I've helped a teenager who later came back with a parent and spent loads of money with me!

4 Comments/Trackbacks




Maria,

Could the following be partly responsible: 1) high gas prices, 2) future income uncertainty, and 3) increased online shopping.

I know I stopped shopping at Wet Seal when I realized that if I bought something there everyone and their mother would have the same outfit. The merchandizing also leaves much to be desired. The most likely answer is that its the lack of service and the lack of money. If the stores don't respect their teen shoppers, they may be alienating their most viable consumers.

Lewis,

Oh, yes, the high gas prices - somehow that slipped my mind! Increased online shopping is also a good one. However, these retailers also have online shops, so perhaps they need to step up their game as far as internet marketing goes.

Kimberlee,

Many retailers don't realize that merchandising does play a big part in the shopping experience. People do pay attention to window displays and mannequins to give them ideas of what to buy.

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