Dynamics of Change
There's a growing group of American consumers willing to pay more for better shopping experiences.
By Quinn Halford -- Gifts & Decorative Accessories, 11/1/2004
There are signs of change in the mindset of the American consumer. A Pulse survey conducted in September by WSL Strategic Retail, New York, reported, "The post Wal-Mart world is approaching, and will be led by a large minority [of consumers] who are willing to pay a bit more for faster checkout, nicer surroundings, and a less stressful shopping trip." Called the price fatigue movement, it's being led by middle- and upper-income Baby Boomers who are past the age of worrying about the family budget, and don't want the hassle of shopping around for the lowest price. For example, even though Wal-Mart has become the country's largest grocer, regional supermarkets such as Whole Foods are able (notwithstanding higher prices) to compete based on the shopping environment they offer. And, as the Pulse survey notes, free libraries are no competition for bookstore chains like Barnes & Noble and Borders.
Another change in consumer attitudes is taking root in neighborhoods such as New York's affluent Greenwich Village, where community and church groups are campaigning on behalf of workers, urging retailers to raise their wages and provide health care and other benefits. Other neighborhoods in the city are organizing to urge retailers to increase their minimum wage by $1 an hour. They feel that a grass roots movement boycotting unresponsive retailers will be more effective than waiting for local legislators to act. The bottom line is that more consumers are willing to pay for what they want, and many specialty retailers will find themselves uniquely suited to serve those desires.
There are also industry changes taking place. New York will be getting a new gift building (see page 10); buyers and vendors will have to deal with new names, as OneCoast re-brands all its regional rep agencies with the OneCoast brand; the former Gourmet Products Show is now a two-parter, called the Gourmet Housewares Show, with events in New York and Las Vegas; and we might be seeing changes in the way we all do business as the result of a white paper on the future of the gift industry, to be introduced by USA (United Sales Association) at its conference at the end of this month.
The more things change, the more they change.
