Despite high gas prices and general economic malaise, consumers are still spending money…but trading down to dollar stores and one-stop-shops like WalMart that are closer to their homes or offices. The biggest loser? Home improvement and home furnishing stores.
TNS Retail Forward’s survey shows a trickle-down thing but not in the way some economic theorists expect – shoppers that traditionally shopped at department stores are moving to discount retailers, and discount retailers are losing their traditional customers to dollar stores.
One of the most salient parts of the research shows that consumers (75% of them) are making a concerted effort to plan their errands to conserve as much gas as possible. Other results from the report:
| Planning errands to minimize the distance traveled |
75%
|
| Going to stores where I can do one-stop shopping |
58%
|
| Going to stores that are closer to home or work |
55%
|
| Doing more activities around the house instead of driving places |
47%
|
| Doing more online shopping |
26%
|
| Visiting friends and family that don’t live close by less often |
23%
|
| Reducing miles driven during vacations |
17%
|
| Walking/bicycling to places instead of driving |
15%
|
| Doing more carpooling |
10%
|
| Using public transportation |
8%
|
| Telecommuting to work/working from home more often |
6%
|
So, what’s a local business to do?
1. Partner with neighboring businesses. Saving on gas is making those “lifestyle centers” and downtown shopping districts a whole lot more attractive – park once and get all your shopping done in one location. Organize a sidewalk sale or cross-promote with your neighbor; chances are, people will be drawn in with the promise of saving a few bucks on gas.
2. Offer to rebate a customer’s gas bill. If you’re in a particularly far-flung location, a gas incentive might just be the ticket…provided customers make a minimum purchase.
3. Make sure your website has pricing information and displays sales details prominently. More consumers are doing online research instead of driving from store to store.
4. Highlight any “private label” brands you may offer. Consumers are now more than willing to try store brands to save a few bucks over name brands.
5. Recognize a shifting demographic in your store. You may be losing regular customers to lower-priced rivals but gaining others that shopped more upscale businesses. Capitalize on these new customers and don’t let them go. Capture their contact information to grow your database.
6. Make sure your customers feel appreciated and informed. Don’t let up on customer service just because you’re down in the dumps about the economy. New customers will turn into repeat customers if you provide a quality product at a fair price and with good service.
We’re all struggling at the moment – believe me, with a husband who drives back and forth to Hoffman Estates every day, I know from high gas prices – but we’re all in this together. As the inimitable Jerry Springer says, “Take care of yourself…and each other.”
