While perusing WWD this afternoon I learned:
Wal-Mart Stores Inc. continues to leave everyone else in its wake. Wal-Mart’s flat profits stood in direct contrast to the other stores reporting results Thursday, all of which saw profits declines. Nordstrom Inc., Urban Outfitters Inc. and Kohl’s Corp. saw profits fall 31.9 percent, 27.6 percent and 10.5 percent, respectively, but all three finished above consensus estimates.
Among Wal-Mart’s initiatives in the current quarter are a series of in-store commercials called “American Summer,” incorporating idyllic summer scenes and products available at Wal-Mart and on display in 2,650 units. Cash-strapped shoppers also will have access to new dollar aisles, where everything in stock costs $1, a move clearly aimed at the dollar-store sector that has been booming in the downturn.
Philadelphia-based Urban Outfitters said customers today are responding only to merchandise they absolutely can’t live without.
“Our data tells us the customer is buying less and that she’s more discriminating,” ceo Glen Senk told analysts on a conference call. “She’s seeking fashion, and there’s no evidence of price elasticity on desirable product. If it’s a ‘love,’ she’s buying it, plain and simple. If it’s a ‘like,’ perceived as too basic, or a recycle of older fashion, she may wait for the first markdown. And if she doesn’t like the product, it’s not going to sell until it’s on clearance.”
As a result, he challenged his merchants and designers “to work harder and smarter to create and identify the ‘loves.’ Just like our customer, they’ve got to be more discriminating.”
Born Curious 
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