The Brand Man Speaks

Investigation show Macys, Kohls and JC Penney's "sales" offers may not be legitmate

NBC has released an investigation that shows that some top US retailers are essentially "cheating" Americans with less than honest sales offerings.

At issue are "sales" prices reflecting discounts off "full retail/regular pricing" and whether there is some unethical, misleading retailing going on. The investigation said the activity may not be illegal (retail fair trade pricing laws give the retailers some wiggle room) but it certainly smacks of scam like tactics.

Products were shown with what appeared to be notable discounts off full retail/regular prices. However, in a number of the cases those discounted prices had been the price for far longer than a legitimate sale period or the full retail price was never the price used to offer the product for sale in the first place. The overall intent appears to make something look like a sale that isn't one.

Consumers are impulse oriented when shopping especially if they see something that appears to be a bargain. Retailers know this as this is the kind of information they gather from various market research studies they conduct all year round. I used to conduct focus groups on retail subjects and know retailers are always looking to find ways to generate impulse purchases and capture as much of the consumers' dollar as possible once they are in-store.

What is surprising is that with all the resources consumers have today with mobile access to a world of pricing information prior to purchase, one would think they would behave smarter and be able to assess the real bargain sales from the pretend ones. I for one rarely buy something because it is one sale theses days without first checking on my smartphone for prices for the item online and at brick and mortar locations elsewhere first. In most cases today, I find in-store retail prices generally higher than online prices therefore driving my business to sites like Amazon and Zappos rather than buying at a retail store.

It is unclear if this report with generate more scrutiny from Attorney Generals offices nationwide to pursue action against retailers for "misleading" consumers with what I would call faulty pricing.

The bottom line is an old saying, "an educated consumer is the best customer".

Watching out for you everyday.

Eli

 

Whole Foods under fire for "English-only" requirement by employees on the clock

Whole Foods, the high end specialty grocer, has come under fire for an incident that occurred in one of their New Mexico stores over the speaking of Spanish vs. English on store time. Two employees were fired for speaking Spanish among themselves while on the clock, or so says several non Whole Foods accounts of the situation.

The actual circumstances may be different than what social media and the press picked up on (Whole Foods says the employees were behaving disrespectfully and rudely while dealing with the management feedback on the matter), however, the outrage is prompting a national ban to not shop at the store by Latin groups.

This event prompts for me a much bigger issue about what language should be primarily used in any business environment that caters to multi-language speaking consumers. I believe fluent English should be required of all retail store personnel in any store that clearly does not cater only to customers who speak a language other than English.

In the case of Whole Foods, all staffers who deal with consumers in anyway should be able to converse in English and if the customer requests another language be used the staffer can if able use the other requested language while on the clock. I do object to the fact that for example, in my Publix supermarket in Miami that caters to English and Spanish speaking customers, many times I cannot find anyone who can speak English well enough to serve my needs. And, to counter-act Publix slogan "Where shopping is a pleasure", it is many times not a pleasure. This is still an English speaking country and sometimes I think certain elements of society forget that.

I reviewed Whole Foods policy as outlined by their managment in several news articles and find it sound. I believe social media and certain Latin groups took advantage of the situation and are not being totally fair about how they are reacting. I do not have a problem with staffers talking to themselves in whatever language they are comfortable with AS LONG AS they are immediately able to address English speaking consumers without any difficulty.

In the case of my local Publix, I have filed a complaint with corporate management but have yet to hear back from them.

What do you think? Let me know.

Watching out for you everyday.

Eli

Sarah Jessica Parker launches high-end shoe line with Manolo Blahnik

Sarah Jessica Parker the actress most well known for playing Carrie Bradshaw on the extremely popular Sex and the City series is launching a high-end shoe line with the head of Manolo Blahnik. Manolo's are the luxury shoe brand Parker's character made a house-hold name in both the TV series and movies of the same name.

This is not the first time Parker has ventured into the apparel business. Her earlier ventures failed miserably. Her line called Bitten was a low priced fashion brand sold at the now defunct Steve and Barry's collegiete retail chain.

In a blog post written when Bitten first launched I correctly predicted it would die fast. Parker is far better known for the Bradshaw image, a struggling reporter in love with luxury apparel brands on which she would drop months of income to purchase. The Bitten line was based on Parker's real life fashion interests which meant little or nothing to consumers. This was a case of a celebrity and her backers not understanding the brand image that fans most identified with...her character not her real self.

Parker was also miscast as a spokesperson for the Gap for a very short time some years back. Again consumers couldn't see the connection between the Gap and Carrie Bradshaw.

Now, with help from one of the leading luxury shoe and accessories brands, SJP, as the brand will be called, will be launched exclusively at Nordstroms. This time I believe Parker will be far more successful. Her SJP brand will not only sell shoes but also handbags and other accessories, all in the luxury category.

Watching out for you eveyday.

Eli

 

 

Walmart offering "money back guarantee" on its produce to ensure lower price doesn't mean lower quality

As Walmart continues its journey to take over the grocery business from mainstream supermarkets across America, the huge retail concern has added a new strategic weapon to cement this effort.

I was quoted on Bloomberg News yesterday about this story: Bloomberg News

The retailer now offers a full refund guarantee on all of its produce. Produce (no pun intended) a receipt to the customer service desk (lines there can be long, however) without too many questions asked, and you Mrs. consumer get your money back.

To ensure that Walmart shoppers understand that lower prices on produce (vs. other retailers) does not mean lower quality, this refund policy is a smart marketing tool. The only issue is in-store implementation. Walmart's are huge stores with long lines. Since one cannot get the refund at the check out but rather at the customer service desk, this may reduce the number of consumers who actually seek the refund.

Abuse of the offer is also a possibility. Walmart's money challenged customers may find this a temptation worth pursuing to get food for free since returning the produce is not a requirement to get the refund.

I think Walmart believes the overall costs of the refund policy will be outweighed by the strong impression that Walmart sells produce as good as any other food retailer, just for a lower price which may entice customers who do not buy perishables at Walmart to give it a try.

Watching out for you everyday.

Eli

 

Did an interview with CNN LIVE Today mid afternoon about the merits of Disney raising individual one park ticket prices for the first time to over $100 ($95 plus tax). Detailed posting to follow with link to the video.