Posts Tagged ‘Target’

Service of a Crack in the Surface of E-Commerce

Monday, September 10th, 2018

Photo: physics.aps.org

A Wall Street Journal article about traditional retailing and E-commerce made clear that those who see the latter annihilating traditional retail shouldn’t order the funeral flowers just yet. Some retailers of both luxury and discount goods are spending big bucks on their brick and mortar stores. In a second article the same day the Journal reported that WalMart has started to refuse to ship heavy items–because of the cost– by claiming they are out of stock. This approach may be temporary and therefore, potentially less significant in the long run.

What’s In Store?

Photo: pinterest.com

Target was also a focus of John D. Stoll’s Wall Street Journal article, “Tiffany’s $250 Million Bet on a 78-Year-Old Store.” He wrote “It turns out that all over the ravaged retailing sector, companies are rethinking the mantra that the future is digital, and pouring money into actual brick-and-mortar stores.” Target plans to spend $7 billion. It doesn’t break down the superstore’s expenditures though “a spokeswoman said stores are an ‘incredibly important linchpin.’”

Why this confidence in physical stores? Stoll wrote: “Because the bulk of America’s retail is still done the old-fashioned way. Target has consistently increased online sales, but ecommerce represents less than 6% of its revenues. Online sales are closer to 7% at Home Depot but under 4% at Walmart.” Tiffany’s stores produce 90 percent of its revenue.

Photo: logos.wikia.com

PricewaterhouseCoopers’ annual Consumer Insights survey showed weekly purchases from stores has risen from 36 percent four years ago to 40 percent in 2015 and 44 percent this year. Stoll wrote: “Retailers are smart to better integrate the physical shopping experience with people’s online habits, but now is not the time to give up on making stores better.” On a recent Wednesday, he reported, Tiffany’s new café in its NYC flagship had 1,000 on a waiting list for 40 seats.

Cupboard is Bare

So what about Walmart’s shipping policy? People need the products involved such as household cleaners, nonperishable groceries, pet food and cosmetics so they will buy them somewhere.

I marvel at how CVS often covers the cost of shipping heavy items with no minimum purchase required, in conjunction with a sale many times, and wonder how long the windfall will last.

Photo: walmartcareers.com

Sarah Nassauer in her Wall Street Journal article wrote that the Walmart “has begun telling online shoppers that some products in its warehouses are ‘out of stock’ after the retailer changed its e-commerce systems to avoid orders deemed too expensive to ship.” Some suppliers were surprised. To address the policy they’ll “stock their products at more Walmart warehouses around the country to keep sales steady, according to an executive at a large food company.

“The shift is part of a test, Walmart said, to see if it can deliver more products via ground shipping, a cheaper option than air shipping, in two days or less.” Spokesman Ravi Jariwala “said shoppers shouldn’t notice a big increase in out-of-stock items because walmart.com will suggest similar products from nearby warehouses.”

Do you think retailers like Tiffany’s and Target are throwing away their money in this retail climate by upgrading their traditional stores? Is there an aura about some stores—like Tiffany’s—that compels shoppers to visit? Will retailers figure out cheaper ways of shipping heavy goods or will customers increasingly pick up in stores their online orders deemed too heavy/expensive to ship? Walmart says it’s a test but if profitable, don’t you think the “shortages will be permanent, potentially impacting online sales? When you buy online, do you stick to your shopping list more than you do when you’re in a store?

Photo: flickr.com

Service of Make Your Prices Clear, Please

Monday, October 24th, 2016

Price tag holders

A friend—I’ll call her Leslie–who is up to date on all things restaurant and retail shared a complaint that I’ve grappled with myself for years: She wants to know what something costs without having to ask.

hip female shopperLeslie wrote: “I ventured downtown to the new Target on Greenwich Street [NYC]. There is a Chobani shop inside that sells food and yogurt. The staff is very personable; however there are no prices on food on display like dips.”

She continued: “I find having to ask someone for prices so annoying. There is a tiny candy shop on the Upper East Side that also sells ice cream. There are no prices on candy so you have to ask about everything…..and you know the prices will be inflated. I said to the owner the first time that I think it would be helpful to have the prices listed and he said ‘I don’t mind telling you.’ But I am one of those people who decides in my head what something should cost so I don’t like not knowing, meaning I wouldn’t ask if I knew something is priced ridiculously!”

Back to the Chobani experience, Leslie added: “Chobani guy says: ‘Enjoy the rest of your day’ to everyone as they leave…that gets tiresome too if you’re in the store for a while! I ordered half sandwich and half salad. Pretty good. But they don’t accept the Target Visa….meaning no discount like I get on everything else in the store. Strange!”

Prices markedLeslie concluded: “What is it with the oh-so-annoying response to everything ‘No problem!’”

When I go to an art, craft or antique show—or store–I also much prefer seeing what the prices are without having to ask. And you? Do you know why retailers and restauranteurs force people to converse with staff? Do repeated expressions–like “no problem”–irritate you as they also do me?

Chobani half salad half sandwich

Service of Facing the Music: It Doesn’t Get Better if You Wait, Yahoo and Target

Monday, October 3rd, 2016

face the music

When something goes wrong you’re better off taking action quickly—that goes for people and companies: Most have to fight putting off facing the music.

Dr. Alan JasloveUrged by my husband to move quickly I averted a disaster last week by immediately acting on a dental emergency that seemed overwhelming when it happened. My instinct was to hide and hope. My great dentist, Alan Jaslove [Photo, right]—I’ve written about him before—saved my tooth and a whole lot of stuff that depended on it, squeezing me in and staying late to do so. Had I waited, as he was scheduled to be out of the office for four days which I didn’t know, I might have damaged the tooth beyond repair causing a domino effect of horrendous proportions.

I know this yet avoidance is in my DNA.

yahooIt must also be in Yahoo’s. It took two years for the company to report and/or discover a humongous customer hack. It doesn’t reflect well in either case: That it knew and didn’t tell or that it didn’t know.

“The Yahoo theft represents the most accounts ever stolen from a single email provider,” I read on usnews.com from a syndicated AP story, “The Yahoo Email Hack is Bad,” by tech writer Michael Liedtke.

  • According to Liedtke, “Yahoo didn’t explain what took so long to uncover a heist that it blamed on a ‘state-sponsored actor’ — parlance for a hacker working on behalf of a foreign government. The Sunnyvale, California, company declined to explain how it reached its conclusions about the attack for security reasons, but said it is working with the FBI and other law enforcement. Yahoo began investigating a possible breach in July, around the time the tech site Motherboard reported that a hacker who uses the name ‘Peace’ was trying to sell account information belonging to 200 million Yahoo users.
  •  Jeff John Roberts on Fortune.com, in a fact sheet format, answered the question “Why did Yahoo take so long to warn everyone?” as follows: “Good question. It’s currently unclear when Yahoo learned about the attack…….All Yahoo has said so far is that a ‘recent investigation… has confirmed the breach.’”

The breach happened in 2014 well before the public knew that Verizon was planning to buy Yahoo. Did executives at the digital services company really think a hack involving so many customers could be forever hidden from the purchaser and that a sophisticated company like Verizon wouldn’t protect itself from such a bad surprise had the sale gone through before this news leaked? And what about 500 million hacked customers who turn to Yahoo for email, finance or fantasy sports—according to Roberts–who must take steps to change passwords and, in some cases, answers to security questions.

TargetTwo years seems to be the magic number for Target too. From August 2014 to July of this year it sold—for as much as $75–what it thought was 100 percent Egyptian cotton sheets and pillow cases according to Bloomberg news, the company bought the products from Welspun India that turned out to be lesser quality cotton.  Target has offered refunds to its customers. But I wonder why it took so long for buyers to discover this. Eons ago, at a party, a friend in the retail business remarked on the quality and thread count of the shirt my husband was wearing without touching it. He was right: It was a pricey shirt in soft, fine Egyptian cotton.

  • Do you drag your feet when you really shouldn’t?
  • It can’t help people sleep well at night to realize that it takes years to discover a giant email hack. Should it take two years to learn something’s amiss?
  • As for Target, did no buyer open a single package over 23 months to check the contents and did he/she even know what Egyptian cotton was supposed to feel like?
  • Do you pay for premium products and sometimes wonder if you are getting your money’s worth?
Photo: cbsnews.com

Photo: cbsnews.com

 

Service of What Were They Thinking II: Tour de France Spectators, Cross Training Flight Crews & Retail Missing its Target

Thursday, July 10th, 2014

tour de france 2014

This batch was far too easy to collect—a bad sign.

Selfish

“‘The worst thing is when people have got their backs to the peloton taking selfies,’ he said.” The he is professional racing cyclist Geraint Thomas; they are British spectators at the Tour de France in the stretch between York and Sheffield. According to guardian.com, Thomas continued, “‘I had a few of those and they don’t see us coming and are stood in the road and it is very dodgy.”

He “described the thousands of people attempting to take pictures of themselves as the peloton rode past as ‘the new pain in the arse’ for riders.”

Imagine being a cyclist who is derailed after all those years of training by bumping into a self-centered klutz taking photos of him/herself.

Train Crew to Move Air Passengers

airport checkinColleague David Reich boarded a flight from Austin to Dallas when passengers were asked to disembark while ground crew fixed a leak. He and many of those on board had a connection to catch. By the time he got out and saw one harried airline ticket agent and a daunting line of passengers looking to get out of Dodge…I mean Austin… he walked through the airport until he found an agent with no line.

He asked her why someone hadn’t assigned help for that agent in the boarding area outside the beached plane. Answer: Cutbacks. As airline management, wouldn’t you cross train flight crews so that while one helps passengers exit the plane the others might immediately pitch in to reroute them?

Lost in Transition

Paper napkins platesI scanned the aisles of my favorite discount store in search of the paper section that housed cards, wrapping, and party accessories until I found it. It had moved and the festive paper plates and napkins hadn’t journeyed with it. After an unsuccessful look in the sections housing food, cookware and tableware, I asked an associate hanging out in the paper area for help and she seemed so proud to say that she’d put them all in the checkout area. This bit of unrealistic creativity almost lost the place a large sale while gaining a frustrated customer.

Not on Target

Target foodTarget was such a fun place to shop—and then it wasn’t and its profits plummeted along with traffic and morale. Paul Xiobro and Serena Ng analyzed what happened in “Retailer Target Lost its Way Under Ousted CEO Gregg Steinhafel.” In digest form Steinhafel eliminated what made the company successful: He replaced creative leeway with “rigid performance metrics” and “mired [management] in a new thicket of bureaucracy.” He turned a company with hip image and cool products into a Wal*Mart wannabe.

They wrote that “‘the chain ‘lost a lot of what used to make it unique,’ says Barclays analyst Matthew McClintock. ‘There haven’t been exciting reasons to shop at Target in recent years.’”

In addition, according to the reporters, the store no longer took risks with new products—instead it increased food options–and rather than practicing its former visionary merchandising skills it sold the best shelf space to those who would pay most. It cut back worldwide trips by trendspotters and took years to implement essential initiatives such as store pickup of items ordered online. A test to add mannequins to the merchandising mix took months, wrote Xiobro and Ng.

Self-involved behavior and shortsighted, uncreative management decisions are formulas for a crash if not failure. What were they thinking?

Mr. Magoo 2

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