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(Nov
3rd, 2004..) Marketing Luxury: The determining
factor for the future of Department
Stores'
According to recent estimates and analysis
published by consumer insight studies, traditional department stores are the
choice destination for consumers shopping for luxuries. The report states that
more often than not consumers will go to a high end department store for making
a luxurious purchase.
It
has been seen that only stores like J.C. Penny
have seized the opportunity for targeting the
luxury goods customer. This is in stark contrast
to the present industry scenario where
department stores are struggling to keep prices
low and selections broad. The new concept stores
understand the need to be not participating in
the discounting club but generating a sense of
value for the luxury empowered customers. The
objective will be to target the truly affluent
and the upper-middle market and near-affluent
shoppers who crave
luxury.
This theory has been supplemented by the fact that
conventional and national department chain stores have been the worst
performing sector for the past ten years.
Department store sales have declined an overall of 5% from $ 88.65 billion in
1993 to $ 88.21 billion in 2003. On the same front retail sales excluding
automobiles and food service have grown by a staggering 66% during the same 10
year period.
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