Posts Tagged ‘Amazon’

Service of Where Is Everybody? Looking for Help at Retail Today

Thursday, May 10th, 2018

Photo: blog.shelving.com

Are there longer lines when you check out in large retail stores these days? Have you had a hard time finding anyone to answer a question or direct you? The Wall Street Journal’s Suzanne Kapner offered reasons in “Stores Slash Staffs and Watch Lines Grow.”

Since 2008, she reported, Macy’s has cut 52,000 workers–full and part-time in stores, warehouses and at headquarters. During the same period at J.C. Penny, “workers have disappeared twice as fast as department stores,” now 112 per store down from 145.

Photo: blog.linelogic.com

“Retail staffing hasn’t kept pace with growth in the broader economy or population gains in the past decade. The number of salespeople at retailers grew by 1.5% over the past decade, even though the population served by each store has increased 12.5%, according to government data. At clothing and accessories stores, the number of cashiers is down more than 50% from 2007.”

In the lead, Kapner attributes the “assault” from Amazon while others blame cuts at headquarters, smaller stores, do-it-yourself checkouts, more full-time workers reducing the number of part-timers and “shelf-ready packaging that they say makes existing workers more productive.”

To redress overzealous cutbacks, Kroger grocery store is adding 11,000; Dick’s Sporting Goods plans to add 10 percent and Macy’s will bolster staff in fitting rooms, dress, women’s shoe and handbag departments “for the most impact.”

Retail, Wholesale and Department Store Union president Stuart Applebaum told Kapner:  “If brick-and-mortar retailers can’t compete on price in an online environment, the only thing that allows them to survive is to provide a positive in-store experience.”

Kapner reported that “Over the past 12 months, 86% of U.S. consumers say they have left a store due to long lines, according to a survey conducted by Adyen, a credit-card processor and payment system. That has resulted in $37.7 billion in lost sales for retailers, Adyen estimates.”

Saks flagship store NYC Photo: complex.com

According to a Saks employee on the job 24 years, sales associates in the NYC flagship “process returns, restock shelves and fill online orders which takes them away from selling.”

Is there a solution? Kapner wrote: “Retailers typically set staffing as a percent of sales, but a growing body of research suggests it should be based on foot traffic. The problem is twofold: Many retailers don’t track traffic and even if they do, they are reluctant to add labor, which is already among their biggest costs.”

A Florida chain installed cameras and noticed that even though one store was packed during the afternoon, sales were down at that time because staff was overwhelmed. Sales increased when management added two people during the busy hours.

Do you frequent major retailers? Have sales personnel been distracted or nonexistent? Are there other answers to fighting behemoth amazon.com and online venues that don’t shoulder a retail rent expense? Do people have shorter patience when waiting for help or to pay in a department store than at a discounter? Are there other businesses that, like retail, use financial models from a different time that no longer apply?

Macy’s Oakbrook Center. Photo: cspaksco.com

Service of Reading the Fine Print and Your Emails: Amazon’s Subscribe and Save Program

Monday, September 26th, 2016

terms and conditions

I’m not a fan of automatic anything. When I buy OTC items from a drugstore website, I’m asked if I’d like a monthly order of shampoo, toothpaste, vitamins or makeup. No thanks.

So I didn’t know about Amazon’s Subscribe and Save program where people sign up to get repeat orders of staples like coffee or trash bags. It should be called Subscribe and Sometimes Save. It’s a great example of people signing up for something they haven’t looked into carefully and being duped into thinking they are always getting a good deal.

toothpasteAccording to Brian X. Chen in his New York Times article, “Subscribe and Save on Amazon? Don’t Count on It,” the company’s pricing model doesn’t always work out in the customer’s favor. “Any sticker shock, analysts said, may be the result of Amazon’s complex pricing system coming into conflict with consumer expectations of a traditional subscription.”

He wrote that Amazon “frequently adjusts item prices based on a sophisticated set of variables like supply and demand, time of day and prices offered by competitors.” He shared the insight of Jared Wiesel, a partner at consulting firm Revenue Analytics. It “is the company’s way of making it look as if you are always getting the best deal.”

chewing gumChen identified one customer who paid $10 for gum when signing up and was charged $100 on the repeat. “Prices of most items, including dishwasher soap and toilet bowl cleaner, changed frequently. As often as weekly, prices rose, dipped and rose again like a roller coaster. In extreme cases, prices for items like instant coffee and napkins jumped between 90 and 170 percent.”

  • A 30.5 oz tub of Folgers ranged from $6.64 in June to $12.50 in August.
  • Vanity Fair napkins moved from $7.94 in May to $21.46 in June/July and $15.36 in August.
  • More high/lows include an air purifier filter and humidifier filter, $18.06 to $33.24 and $$4.67 to $11.27 respectively.

Participants are given a chance to opt out. Amazon sends them an email 10 days before a delivery with the price they’ll be paying and they can cancel. I suppose not everyone reads them.

The trouble with the concept, according to Wiesel is: “I think they’ve violated the psychological concept of a subscription with their customers in changing prices like this. When people think of a subscription, they think of locking in a set cadence of receiving a good.”

Chen offers a solution: “If you truly want to save money on Amazon, one approach is to sign up for price alerts on Camel Camel Camel to get an email when a price drops to a desired amount. When that happens, manually reorder — yes, that’s an extra step — your instant coffee, toilet cleaner or lint rollers.” [Camel Camel Camel is an Amazon price tracker Chen explained.]

Why should Amazon change an eyelash on this or any other of its programs? In the last 17 months its stock price closed at a high of $800, more than doubling in 17 months.

Do you automatically receive anything from Amazon or any other company? Have you fallen for a deal that seemed great only to learn it’s more complicated—and not as great–as you first thought?

Camel

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