Consumers choose their favorite retailer Nike Kohls
A view outside the Kohl’s store at Paxton Town Center near Harrisburg. A customer walks away with a Nike shopping bag.
Paul Weaver | SOPA Images | Emily Elconin | Bloomberg | Getty Images
Nike And Kohl’s maybe not Win on Wall Streetbut there is a large consumer base still consider them the best in their category, according to a consumer sentiment survey released Thursday.
The Consumer Sentiment Index from consulting firm AlixPartners surveyed 9,000 fashion shoppers from Generation Z to boomers about the factors that drive their purchasing decisions and how retailers compare. compare with their competitors.
Nike ranked as the No. 1 active footwear retailer among all four generational groups polled: Generation Z, Millennials, Generation X and Boomers. The legacy sneaker giant has been defeated Adidas And Foot lockertied for second place, while emerging rival Running ranked last among Gen Z and Millennials.
Kohl’s is the #1 department store choice of Gen Z and boomers, while Millennials choose Nordstrom and Gen X selected Macy’s.
The survey’s results contrast with Nike and Kohl’s recent performance. Nike is looking forward sales decreased from 8% to 10% this quarter. As of Wednesday’s close, its shares were down 26% this year as investors braced for a long road to recovery from the impact of the financial crisis. New CEO Elliott Hill.
Meanwhile, Kohl’s is looking forward sales decreased between 4% and 6% this financial year as it struggles with larger growth, existential problem Faced with department stores struggling to stay relevant. Its shares were down 32% this year, as of Wednesday’s close.
Sonia Lapinsky, global head of fashion at AlixPartners and author of the report, told CNBC that the survey’s results — combined with the companies’ recent performance — show that Nike and Kohl’s is at a critical juncture. The results show that consumers still favor retailers, but that favor could soon run out if they don’t quickly diagnose and fix flaws.
“We’ll see in the data what’s important to Nike consumers. It’s all about innovation, engineering, and product quality [the competitors] who are growing super fast… they are known for innovation, they are known for product development, they do it a lot faster than we know Nike did,” Lapinsky said.
She said it’s a similar situation at Kohl’s, which has changed its assortment strategy several times over the years but still attracts consumers with competitive prices.
Consumers “still think they’re the best product when it comes to price. They still get the deal. They probably love the Kohl’s coin,” Lapinsky said. “Now, create an experience when they come into the store that will keep them coming back to buy and really boost your sales.”
Walk the tight rope of inventory
Alix’s consumer sentiment report reveals a series of other findings that retailers need to keep in mind as they enter the all-important holiday shopping season, including the No. Buy products from competitors. The majority of consumers surveyed, or 66% of respondents, said they would shop at another retailer if the product they were looking for was no longer in stock.
“‘Right product, right place, right time’ resonates in every retail boardroom, however, as retailers expand their catalogs and online marketplaces to attract customers and traffic new, it’s becoming more difficult to avoid disappointing shoppers when they can’t find their size or the item they want in store,” the report said.
For example, according to the report, on average only 9% of a retailer’s online items are available in stores, based on a sample of 30 retailers.
“It’s clear why consumers are disappointed,” the report said. Macys.com has 24,000 women’s shirts available online, but for customers who step foot into the Herald Square store in New York City, there are only 2,500 women’s shirts available for pickup.” “Because Gap.com158 tops and t-shirts are available online for women, but only 50 are available for pickup at the Herald Square location.”
As retailers want to stand out and attract attention online, they have started offering much broader digital assortments. But when consumers return to stores, they expect to see similar products on the shelves.
It would be too expensive and impractical to replicate digital inventory in stores, so retailers need to be able to predict which inventory to place where so consumers can find it. what they are looking for in the store.
“This is kind of the perfect recipe for AI to work,” Lapinsky said. “They have to be really smart about where customers are going and what they’re looking for, and they do that with better analytics, potentially AI models, that are able to predict what customers want. And then they have to do it.” have the same view of converting across stores, even by store location, store cluster, store area, where they have a clear view of what consumers might be looking for.”
