20somethings Talk Shopping

Vildia Samaniego is marketing director of Mademoiselle magazine. To obtain more information on the study, please contact Vildia Samaniego at (212) 880-6670.

Current thinking says that department stores are R.I.P. They're stodgy, depressing places where no woman under 40 would be caught dead shopping, right? But according to Mademoiselle's new ShopCulture retail study, rumors of the department store's demise have been greatly exaggerated: the "20something" woman loves to shop there.

Identified in the study as women age 18-34, 20somethings are an extremely savvy, impulsive set of cross-channel shoppers. There's no doubt that the explosion in retail outlets over the past decade is due, in great part, to these enthusiastic consumers. As a result, the evolving retail environment has created an atmosphere where shoppers are faced with unprecedented choice: They know they can get what they want, at a price they want and packaged in a setting that suits their lifestyle.

It's probably no surprise that seven in 10 of the women said they love to shop, that it's an extension of their lifestyle and social activities. The real surprise is that 20something women love to shop in department stores; they say they frequent them more often than any other retail outlet. So what drives these shoppers to a retail venue that has been pronounced dead by so many? The young women said they shop department stores for brand names they can trust (94%); flexible return policies (84%); a wide variety of merchandise (83%); attractive environments (80%); and frequent sales and bargains (77%).

But driving them into the channel is only half the baffle; the real challenge is getting a larger share of their wallets. Department stores have trained 20somethings to expect frequent sales and bargains, and as a result, they are spending less on average. In sharp contrast, specialty stores have not, so these women buy more full-price merchandise there.

But department stores could persuade 20something women to buy full price if they simply capitalized on one thing: their pure unadulterated impulsiveness. Nearly 70% said if they really want something they don't wait for a sale to buy. They'll pay full price when they fear the item will not be available later (60%), because they "have to have it"(43%) or if they need it for a special occasion (53%).

Specialty stores and the Web are perceived as the prime destination for unique, adventuresome merchandise or brands that can't be found elsewhere. If department stores were to provide inventive merchandise, they might be able to steal away market share from specialty stores and add value to their own Websites.

Unlike some older consumers who view the overwhelming variety in today's retail environment as more of a "shock culture," the 20something loves the shopping experience and enjoys the freedom of choosing what to buy from the numerous retail venues that exist today. She's by far the easiest consumer to win, but with so many choices available to her, she's also the easiest to lose.

MASS APPEAL

Following Target's lead, mass merchandisers have begun to reach 20somethings by ramping up their service and selection of brand name merchandise. This, coupled with their pricing policies and low consumer expectations, puts them in a position to get a larger share of women's wallets. Price aside, the Mademoiselle study revealed that 20somethlng women expect very little from mass discount stores. They want affordable merchandise (85%) and fair prices (80%.). They don't count on being treated like an important customer (38%) and understand that they'll have to search through racks to get a good deal. Less than one-third anticipate anything in the way of service. Considering this, mass discounters are in an enviable position and stand to take away market share from department stores-after all, who can resist the combination of products that meet one's lifestyle and budget?

THE HIT LIST

Department stores that are hitting the right chords with 20 somethings surveyed:

Store          Satisfaction Index
Nordstrom                    114
Neiman-Marcus                107
Marshall Field               106
Bloomingdale's               105
Macy's                       103

The satisfaction index reflects the respondent's level of shopping enjoyment in each store listed compared lathe enjoyment level of the average department store.

WHAT MAKES SPECIALTY STORES SO SPECIAL?

Specialty stores have become the arbiters of lifestyle by continually reinforcing their unique brand identities to shoppers. 20somethings cited unique merchandise as a top reason for shopping specialty stores:

"Treated me like an important
customer"                     73%
"Offers unique, adventurous
looks"                        68%
"Has products/brands I can't
find elsewhere"               68%
"Don't have to search racks
for the right outfit"         66%

Still, when asked what specialty stores could do better, differentiation came up most often. Women said stores and merchandise are beginning to "look the same."

COPYRIGHT 1999 BPI Communications, Inc.
COPYRIGHT 2000 Gale Group