| US Market Entry | World Wise | Branding | Co-Branding Strategies | Retail Therapy | Americans Spending | Wealth Effect |
| Download MS Word doc of article |
Retail Therapy — The Common Cure for Feeling Good By Monette Gomez
I was born in California, raised in Spain and lived in the UK for many years before returning to the US. Therefore, my shopping behavior and expectations were shaped in Europe. Let me tell you what I have discovered upon coming home. Shopping in the US is truly an American pastime. Stores are open every day, there’s always a sale, in-store promos are abundant, and incentives for getting a retailer’s credit card are the norm. Catalogs arrive in the mail non-stop and now, store run playrooms with baby sitters let you break free of the kids so you can have a wonderful day of retail therapy at your favorite mall. What more could you ask for? I admit that I have been Americanized. I am a serious shopper and a leisure shopper. On the serious side, I am on a mission to buy things for upcoming occasions. As a frequent leisure time shopper, when I have the most fun, I am a retailers dream come true. And I am not alone. Research studies show that leisure shoppers spend considerably more per leisure trip than other adults over 18. In fact, leisure shoppers spend an average of $113.33 per shopping trip making this consumer segment one of the most profitable and informed. Leisure shoppers in the US tend to be female (54%) with an average age of 31. We buy apparel (40.2%), health and beauty aids (26.6%) and entertainment, leisure and electronics (22.5%). Most people are surprised about the growing percentage of women who purchase electronics. Recently I bought a computer for my son and splurged on an iPod for myself. Our primary motivation for leisure shopping is that we want to relax and get away from the house (61.3%). No surprises here! UK and European firms invariably ask about American shopping behavior. It is important to understand that we enjoy comparison-shopping. Price, quality, innovation, ultimate value and how a product or brand fits within our self-image are very important. Americans tend to select brands with a reputation for quality and are willing to pay more. And if what we want is not in stock, we will go to another store or delay purchase until the next shopping trip. Americans are no different from anyone else when it comes to being price conscious. Yes we have more disposable income, but the fact that we will pay more is tied to our focus on value. When it comes to apparel and fashion, breaking the rules is part of the fun. For example, if I wanted to buy a Ralph Lauren suit I’d go to the Ralph Lauren outlet (outlets are discount centers for last season’s designs) and the money saved lets me buy the latest Armani jacket at Bloomingdales. What we buy and wear is how we distinguish ourselves from the masses. It is a reflection of our success, an expression of our culture and hopefully demonstrates our good tastes. Finally, retail therapy extends beyond the local mall. You can keep shopping even at home—between meals, after the kids go to bed, in the middle of the night—there’s no end! The Internet makes the nation our neighborhood and the world is next door. Women have made apparel, clothing, and home furnishings among the most popular and fastest growing categories online. According to a Forrester Research study of 137 retailers, estimated retail sales (excluding travel) in 2005 will amount to $109.6 billion. And somewhere in that number is my personal contribution! |