Retailing in the 21st Century....

Present two findings (articles):
-Retailer
-Location
-Description of the lastest trend (about)
-Imagery
-Links
Retail sales at stores in America during 2008-10 were driven partly by deep discounting.  Automobile sales saw a disastrous drop-off, with total sales of cars and light trucks in the United States during 2010 estimated at 11.5 million.  This was a good improvement over 2009, but still dramatically lower than the peak of 17.5 million in 2005.  Meanwhile, China became the world’s largest automobile market.

Negative factors that will impact the retail sector in 2011:
·        Consumer debt levels remain high.  Surveys show that consumers are focused on paying down debts.
·        High health care costs continue to be a challenge, thus reducing discretionary spending.
·        A continuation of depressed conditions in the housing market means low home equities and limits the ability of consumers to sell or borrow against their houses.
·        A high level of home mortgage foreclosures continues, with nearly 10% of all residential mortgages in delinquency or foreclosure as of late 2010.
·        High unemployment levels and a very difficult environment for job seekers reduce retail spending.
·        Tightened lending standards make it more difficult for consumers to obtain credit, including a pull back in lines of credit available on credit cards and home equity loans.
·        Low consumer confidence reduces spending.
·        Consumers will continue to be more conservative.  To the extent they are able to do so, they will be saving more while spending less.  When they do spend, they will be focusing to a growing extent on high-value items with long life and lasting value.
Meanwhile, competition among retailers has never been tougher.  A retailer without a significant competitive advantage doesn’t stand a chance.  Superstores are battling each other on every major corner while direct marketers (including catalogs and online sites) are stealing customers from stores.  Online selling at deep discounts is even making inroads into major consumer purchases such as jewelry.  Many retailers have been driven into bankruptcy recently, including Sharper Image, Linens ‘n Things, Bombay Co., and mail order firm Lillian Vernon, and more will follow.
Growth in online shopping has been driven by two factors.  First, the number of fast Internet connections in U.S. homes and businesses leapt to about 100 million by 2010, plus tens of millions of wireless connections, which make buying online faster and more interactive.  Next, there’s the savvy marketing of online giants like Amazon.com (with more than $24.5 billion in 2009 revenues, up from $19.1 billion in 2008), as well as the e-commerce efforts of traditional retailers such as Home Depot and Wal-Mart.  These fast Internet connections are extremely important, even at the office, since a large number of U.S. workers take time out to shop online from their desktops.
Analysts at eMarketer forecast growth in American e-commerce sales of 12.7% for 2010, to a total of $162.4 billion.  This figure does not include online travel sales or sales of tickets to events.  Travel was forecast to be an additional $92.5 billion in online sales for 2010.  By 2013, eMarketer expects U.S. online sales, excluding travel, to reach $223.9 billion.
Typical U.S. consumers are focused on buying less, and when they do make purchases they are seeking the best possible prices.  This means that revenues have been strong at so-called “dollar stores” and other outlets that are known for exceptionally low prices.  Elsewhere, many retailers, including department stores, are forced to offer special prices on a frequent basis, including special sale events.  Even discount store leader Wal-Mart is suffering from slow sales in America.
Coupons have made a big comeback.  Analysts at The Nielsen Company estimate that coupon redemption in America grew by 27% in 2009, to 3.3 billion.  Big factors in this growth include the financially challenged consumer and the use of technology.  Mobile coupon distribution via cellphones has made a big impact.  Also, the fact that consumers now use the Internet to search for and print out coupons caused significant growth.  Web sites that promote special offers, such as Groupon and SlickDeals, have seen soaring growth in their user bases.  In fact, Groupon has enjoyed stellar growth, and in November 2010 Google indicated an interested in acquiring the company.
Neiman Marcus is demanding moderately priced lines from designers.  In a different segment, household product makers are emphasizing lower-priced soaps and detergents, or high-value larger packages.  Even companies that were already known for reasonably priced goods are repositioning.
Ann Taylor, a national U.S. chain of moderately priced women’s fashion stores, hired a new designer during the Great Recession and added a selection of trendier, fashion-forward clothes at reasonable prices.  Thus, they have been able to keep existing customers while attracting new shoppers who want chic clothing that fits within their restrained budgets.  Competitor Talbots, Inc. has used the same strategy.  This is a good example of adapting to the new retail era, since many fashion-conscious women have become much more conservative about the amount they are willing to spend on clothing.  “Shop your own closet first,” is the new mantra of many American women who realize they can get more use from the fashions that they already own.

Retailer:
Ann Taylor
Location:
Across United States
What they did:
Ann Taylor, a national U.S. chain of moderately priced women’s fashion stores, hired a new designer during the Great Recession and added a selection of trendier, fashion-forward clothes at reasonable prices.  Thus, they have been able to keep existing customers while attracting new shoppers who want chic clothing that fits within their restrained budgets. 

The designs found in Ann Taylor’s Loft collection are the middle-class designs of the company. Sophisticated clothing at affordable prices which are not quite as elegant as the signature collection but not quite as basic as the styles found in the Factory collection.

Images:

One of the most remarkable trends in the past couple of decades has been the increased market share of the discount retailers such as Target, Wal-Mart and Kmart. Due to the introduction of higher end goods in the discounters (e.g. Martha Stewart housewares at Kmart and Phillipe Starck housewares at Target), it's become chic to shop there. Between 1988 and 1998 discounters' market share rose from 43% to 63% while department store sales dropped from 25% to 15%. This continues today--a trend solidified by the effect of the current recession on shopping patterns. Discount retailers have become increasingly broad in their product offerings. Wal-Mart, Target and others now include grocery sections in many of their stores to offer a full range of products to shoppers. One-stop is a dominant idea of our time. \

Retailer:
Target
Location:
Across United States
What they did:
Product offereings at a One-stop shopping experience by adding on with a grocery section in many of their stores to offer a full range of products to shoppers. Also within the last few years they have added new trendy designers that have drawn in a younger target market with a lower price point.  Ex:William Rast for Target, Converse One Star, Paul Frank for Target,  and many other brands...
Images:

http://en.wikipedia.org/wiki/Ann_Taylor_(retail_chain)
http://www.wwd.com/
www.cob.unt.edu/mktg/faculty/blankson/REAILING%20TRENDS%20IN%20THE%20USA.ppt
http://www.careers-in-marketing.com/rtfacts.htm
http://www.plunkettresearch.com/retailing%20stores%20market%20research/industry%20overview

Ann Taylor’s classic, elegant approach to designer fashion has contributed to the new and improved image of 21^st century women. With a wide selection of pants, tops, shoes, dresses, skirts and accessories, Ann Taylor has stylish pieces to suit the needs of all women. The label currently operates 824 stores around the world including the United States and Puerto Rico.