Will New Partnership Increase Sales?
When things get tough in the economy, retailers often put their heads together to come up with new ways to bring in customers who are “pinching pennies.” Sometimes the match-up is rather odd, but nevertheless effective.
Such is the case with the prestigious luxury department store retailer, Neiman Marcus Group,. Inc. and discounter, Target Corporation. Ann Zimmerman and Dana Mattioli, in an article for The Wall Street Journal, report that the two retailers have opted for an experiment for the holidays (not a merger) that will offer customers a limited collection from 24 American designers of items ranging from sporting goods to stationery. Each chain will offer the same items at the same price, with labels bearing both the Target bulls-eye and the Neiman Marcus logo.
The high-low trend that has recently escalated in retail sales instigated this creative move. This trend happens when customers, during hard times, pinch pennies on basics, but splurge on an item they really want. The outcome is that high end retail stores and “dollar” stores profit, while middle-range stores suffer reduced sales. The partnership of Neiman Marcus and Target is geared toward increasing sales by hitting both ends of the spectrum, rather than just high or low end goods. The question is whether the move will “water down” the image of Neiman Marcus, elevate the status of Target, or just allow customers better options to get what they want and need. Only time will tell!
Often changes in the way things are done in a business can cause a great positive impact on sales. Changing to the right POS Software, like CounterPoint, will greatly enhance your ability to connect with your customers and provide “on the go” sales to adapt to your customers’ busy lives. Call us for more information at 425-672-4806 or email us and ask about CounterPoint’s CustomerConnect and CPMobile features.