||More Affluent Consumers Shopping at Discounters
A survey released by Unity Marketing on Monday shows wealthy consumers are more likely to shop at discounters like Target than at high-end department stores.
According to the survey, more ultra-affluent shoppers, defined as those with incomes of $250,000 and above, said they shopped at Target (39.5 percent), Macy's (34 percent), and J.C. Penney (22.4 percent), than said they shopped at Neiman Marcus (20.1 percent) or Bloomingdales (19.4 percent).
Affluent shoppers "are just as eager as shoppers with less disposable income to find good quality at reasonable prices," said a Unity Marketing statement. "That's why they shop at discounters like Target, Kohl's, Costco and Walmart, just like everybody else."
Unity Marketing president Pam Danziger, said luxury shoppers have embraced a new "value orientation."
Luxury products today must "deliver a meaningful return, as measured in greater pleasure, comfort, superior performance, and longevity of wear and use," Danziger said. "If the product doesn't measure up, (affluent consumers) won't spend the money; rather they will trade down to a cheaper, yet acceptable alternative."
Danziger said high-end stores like Neiman Marcus have to understand that discounters are increasingly becoming their competitors.
"With Apple's retail innovator Ron Johnson joining J.C. Penney as CEO later this year, I expect to see exciting changes emerging from Penney's, particularly in the area of the customer's shopping experience," she added.
(Source: Jewelers' Circular Keystone, 06/20/11)