Consumer Attitudes & Behavior

The delay of tax refunds helped keep consumer spending in check on February.   Retail sales in February inched up 0.2% seasonally adjusted over January, according to the National Retail Federation. (The NRF numbers exclude automobiles, gasoline stations and restaurants.)   The industry’s performance in February was mixed. Electronics and appliance stores took the biggest hit, with sales falling 2.8% over the previous month.   

Disappointing shopping experiences are costing brick-and-mortar retailers serious money.   That’s according to the recent TimeTrade State of Retail 2017 survey, whose results suggest that U.S. retail stores left about $150 billion in potential revenue on the table in 2016 by failing to offer shoppers the personalized shopping experiences they want.     

More luxury stores opened in London in 2016 than any other city in the world.   The British capital topped the global ranking for new luxury retail store openings in 2016, according to Savills Global Luxury Retail report.    The city saw a total of 41 luxury store openings during the year, (of which 15 were the respective brand’s first ever store in London), followed by Paris, with 36 openings, and New York, with 31. Rounding out the top five were Dubai (31), Hong Kong (25) and Milan (24).  

Generation Z is called the mobile-first generation. However, their preference for shopping in physical stores presents new opportunities for retailers.   That’s according to a new report from Euclid Analytics, “Evolution of Retail, 2017 Generation Z Shopper Survey,” which found that 66% of Gen Z prefer to shop in store because they like to see, hold and try on products before buying. Also, 28% want to engage with store associates while shopping, the most of any generation.  

Supermarkets and fast-casual restaurant brands took the top positions in an annual ranking of customer experience. Publix, Chick-fil-A, and H-E-B earned top three positions in Temkin Group’s 2017 Temkin Experience Ratings, a cross-industry benchmark of customer experience. Publix had a score of 84%, closely followed by Chick-fil-A and H-E-B, which both scored 83% in the seventh annual rating.

The newest robots like the way their controllers think.   Rather than relying on touch screens and artificial intelligence, a new “droid” is controlled by a user’s brain responses, according to ReCode.  

Costco Wholesale Corp.’s second quarter profit took a hit amid higher costs. And for the first time since 2011, the retailer is raising the cost of entry into its stores.   As of June 1, Costco’s annual fee for individual and business members will increase by $5.00, to $60. The executive membership fee will go up $10, to $120.    Costco’s net income for the quarter, ended Feb. 12, fell 5.7% to $515 million, or $1.17 per share, below Wall Street expectations.  

Move over millennials, Gen Z is snapping at your heels. And retailers should take note.    Retailers looking to capture share of wallet and brand loyalty from Gen Z – the most  digitally- and socially-engaged generation to date — need to step up their focus on new ways of engagement. But they also should pay attention to their physical stores.