The Big Retail Brands That Drove Customers Away This Holiday

Dec 23 2013, 9:08pm CST | by

The Big Retail Brands That Drove Customers Away This Holiday
Photo Credit: Forbes Business

As the 2013 holiday-shopping season winds down, which brands succeeded in hanging onto their customers, and which saw them stampede out the door to competitors?

Research done over the weekend by longtime holiday-shopping research firm America’s Research Group on the Season’s Winners & Losers found the answers.

Retailers need to retain existing customers — at least 70 percent of them — to succeed in the key holiday shopping period, says America’s Research Group CEO and chairman Britt Beamer. But this year, the survey found, only three major brands did that — Walmart, Dollar Tree and Target. Based on that finding, it appears that low prices were a prime concern for most American shoppers.

Who is hemorrhaging the most customers out the door? America’s Research Group did a phone survey of more than 1,000 customers this weekend and asked shoppers where they shopped last year, and whether they stayed true to those brands this time around.

Here’s a look at the seven biggest losers in customer retention for holiday season 2013, along with the percent of customers they retained and my own thoughts about possible causes:

7. Old Navy (57.2%) — Apparently, the discount clothing chain’s Mega-Sale offer wasn’t enough to lure customers back to stores. Perhaps their use of 87-year-old Tony Bennett as one of their ad icons didn’t resonate, given the much-younger typical age of an Old Navy shopper.

6. Best Buy (56.6%) — When a big-box store that competes almost solely on price isn’t holding onto customers, that’s a big red flag for its future prospects. Positioning itself as “the ultimate holiday showroom” to visit was probably a misstep, leading one wag to dub their true positioning “ Try it out before buying it on Amazon.”

5. Lowe’s (56.0%) — Not a store I think of primarily for holiday shopping. Maybe fewer people were thinking about doing home improvement projects this winter than they did last year? We’ve had a lot of bad weather, particularly back East, which can affect those decisions.

4. Toys ‘R’ Us (53.1%) — This venerable toy chain has struggled for decades to stay relevant as online toy shopping rose in popularity…seems like it’s still not winning that war. This company needs a whole new strategy, as being the low-cost purveyor of mainstream toys is a slot now owned by Amazon and Walmart.

3. Marshall’s (50.0%) — Looking increasingly like a stale legacy brand, Marshall’s retained only half its existing customers. Promoting its #fabfound holiday hashtag didn’t seem to keep shoppers buzzing into stores.

2. Costco (49.4%) — As with Lowe’s, not necessarily a store that lives and dies on holiday sales, since so many of us shop there year-round on a regular basis for those food-and-wine deals. But perhaps holiday merchandise failed to thrill this year. If so, it hurts Costco less than it does a Toys ‘R’ Us.

1. Barnes & Noble (43.9%) — Being the last mega-store book chain standing doesn’t seem to be helping Barnes & Noble retain market share, the survey found. Instead, more customers deserted this brand than any other in the survey, likely for archrival Amazon.

Where did you shop this holiday season? Leave a comment and tell us if you were loyal to your favorite brands or tried new stores this season.

Source: Forbes Business


Don't miss ...


<a href="/latest_stories/all/all/30" rel="author">Forbes</a>
Forbes is among the most trusted resources for the world's business and investment leaders, providing them the uncompromising commentary, concise analysis, relevant tools and real-time reporting they need to succeed at work, profit from investing and have fun with the rewards of winning.


blog comments powered by Disqus

Latest stories

Xi Jinping-Peng Liyuan love story goes viral on internet
Beijing, Nov 24 (IANS/EFE) A music video that tells the story of the deep love between Chinese President Xi Jinping and his wife Peng Liyuan has gone viral on the internet with more than 22 million views in a week, the People's Daily reported Monday.
Italian doctor contracts Ebola in Sierra Leone
Rome, Nov 24 (IANS) A doctor working for a voluntary organisation in Sierra Leone has become the first Italian to contract Ebola, media reported Monday.
Complete fossil of small dinosaur found
Seoul, Nov 24 (IANS/EFE) South Korean paleontologists have found a complete fossil of a small dinosaur in rare condition, the first such discovery of its kind in the country, according to the National Research Institute of Cultural Heritage in Seoul.
Oman considers remittance tax on expats
Dubai, Nov 24 (IANS) The proposal for a two percent levy on the billions of rials that expatriates send home every year has been approved by Oman's Majlis al-Shura, or the lower house of the council of Oman, to overcome a budget deficit due to drop in oil prices, a media report said.

Latest from the Network

Hamilton admits hardly sleeping the night before
Abu Dhabi, Nov 24 (IANS/CMC) Newly crowned Formula 1 World champion Lewis Hamilton has revealed he hardly slept the night before the season-ending Abu Dhabi Grand Prix which he eventually won to clinch his second...
Read more on Sport Balla
Real Madrid to play in Australian tournament
Melbourne, Nov 24 (IANS) Real Madrid, which boasts the most expensive squad in world football, have been announced as one of three teams to compete in the International Champions Cup in Melbourne in July. The...
Read more on Sport Balla
Cruzeiro win Brazil Serie A title
Belo Horizonte (Brazil), Nov 24 (IANS) Cruzeiro have clinched their second consecutive Brazilian Serie A title with a 2-1 victory over Goias. Everton Ribeiro struck the winner at the Mineirao stadium Sunday after...
Read more on Sport Balla
Honours shared in Milan derby
Rome, Nov 24 (IANS) Inter Milan have played out a 1-1 draw against crosstown rivals AC Milan in a sellout Serie A game. Jeremy Menez gave AC Milan a lead at halftime but Joel Obi equalised for Inter shortly after the...
Read more on Sport Balla
IOC chief condemns Afghan bombing
Lausanne, Nov 24 (IANS) International Olympic Committee President Thomas Bach condemned the suicide bombing at a volleyball tournament in Afghanistan. The lone bomber detonated explosives Sunday during a local...
Read more on Sport Balla
Marseille tops French league
Paris, Nov 24 (IANS) Marseille have climbed to the top of the French league after rallying to beat Bordeaux 3-1. With the victory, they now enjoy a one-point lead over Paris Saint-Germain. Bordeaux striker Thomas...
Read more on Sport Balla
New crew aboard Russian spaceship reach ISS
Washington, Nov 24 (IANS) Three new crew members from the US, Russia and Italy arrived Monday at the International Space Station (ISS) on board a Russian spaceship. Terry Virts of NASA, Soyuz Commander Anton...
Read more on Business Balla
Sears plans for big Black Friday 2014
Sears is looking foward to cashing in big time for the upcoming Black Friday 2014 shopping holiday on Novermber 28th. Members of Sears have seen their Black Friday specials start one week early and the company has...
Read more on Black Friday Countdown
Apple gears up for Black Friday
Black Friday is fast approaching and one company that plans on seeing a sales increase is Apple. Apple has announced that they will have discounted prices for the upcoming buying holiday and one product they plan on...
Read more on Black Friday Countdown
Thousands protest in Chile in favour of new constitution
Santiago, Nov 24 (IANS/EFE) Several thousand people took to the streets of Santiago and other Chilean cities to demand a Constitutional Assembly as a means to provide the country with a new constitution, as was...
Read more on Politics Balla