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Monday, July 23, 2007

But will it play in South Jersey?

If I had my way, all department stores would move their shoe sections to the front of the store. But then, I grew up in South Jersey, where shoppers have a decided footwear fetish.

That could be an important differential, as retailers are testing the idea of placing products in order to keep the locals happy instead of a standard, cookie-cutter approach. A study by Bain & Co. determined that merchants can double same-store profits if they price, place and promote their wares based on what shoppers want.

The concept, called localization, is being tested by such heavy hitters as Wal-Mart and Macy's. The inspiration for Macy's was low sales in stores the chain acquired from the May Co., including Strawbridge's. Bain concluded that shoppers yearned for the layout of the old stores.

Wal-Mart's is taking a different approach, carving out upscale displays in target areas, while continuing to cater to its core discount customers across the chain.

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