FINANCE

Study: Customer satisfaction up in specialty stores

BY Dan Berthiaume

Ann Arbor, Mich. – Customer satisfaction improved for a third consecutive year for retail. According to a report released by the American Customer Satisfaction Index (ACSI), the retail sector overall gained 1.7% to an ACSI benchmark of 77.9, boosted by higher customer satisfaction with specialty retail stores, supermarkets, drug stores, and gasoline service stations.

Customers had a better shopping experience at specialty retailers during the 2013 holiday season, with the category gaining 2.6% to an ACSI benchmark of 80. Department and discount stores, on the other hand, remain flat at 77. Upscale Nordstrom leads at 83 and discounter Wal-Mart has the lowest score of 71.

Several chains cluster in the ACSI range of 77 to 79, including J.C. Penney, Sears, Target and the aggregate of smaller stores. Compared with a year ago, JCP is down 2%, while Sears is up by 3%. Macy’s declines 3% to 76, but Target suffers the greatest negative change, tumbling 5% to an ACSI benchmark of 77.

Among specialty retailers, including wholesale warehouse clubs, office supply chains or clothing stores, Costco regained the lead with a 1% uptick to 84, followed by Barnes & Noble (unchanged) and Lowe’s (+4%) at 82. Home Depot improved 3% to 79, but doesn’t catch Lowe’s, which has held the customer satisfaction advantage in home improvement for over a decade. At the low end, discounter TJX gained 4% to 79, pulling slightly ahead of both Gap and Best Buy (tied at 77).

The newly merged Office Depot and OfficeMax moved in opposite directions as of the fourth quarter of 2013, with Office Depot slumping 6% to 79 and OfficeMax gaining 5% to 82. Staples improved as well, up 3% to an ACSI benchmark of 81.

Specialty retailers earned strong ratings for staff courtesy and for store layout and cleanliness (ACSI benchmarks of 81) compared with department and discount stores at 78. Specialty stores also do a better job of providing name-brand merchandise (81) than department and discount stores (77).

Meanwhile, the grocery industry inched up 1.3% to an ACSI score of 78. Among national and regional supermarket chains, Publix dominates for customer satisfaction with a stable benchmark of 86. Ever since the ACSI’s inaugural year in 1994, Publix has remained number one in its category.

The aggregate of smaller grocery chains placed second at 81, followed closely by Kroger at 80. For the first time in six years, Whole Foods dropped in customer satisfaction, down 3% to 78. Winn-Dixie, Supervalu and Safeway are tightly grouped with scores of 76 to 77, while Wal-Mart lags behind at 72.

Customer satisfaction with health and personal care (drug) stores is up 2.6% to an ACSI benchmark of 79. The improvement comes from a large gain for smaller drug stores. Walgreens and CVS are tied at 76, while Rite Aid slides 4% to 74. Customers give high marks to both supermarkets and drug stores for locations and hours (ACSI benchmarks of 86 and 87, respectively). When asked about quality of pharmacy services, shoppers give better marks to drug stores (84) than to supermarkets (80).

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Eminence Capital criticizes Jos. A. Bank for Eddie Bauer purchase

BY Dan Berthiaume

New York – Eminence Capital, LLC, which owns 4.9% of the common stock of Jos. A. Bank Clothiers, has sent a letter to the board of directors criticizing their announced acquisition of Eddie Bauer. According to the letter, signed by Eminence CEO Ricky Sandler, the nearly $900 million acquisition is a poor decision that has an excessive price which almost surely destroys shareholder value.

The letter also states that if the Eddie Bauer transaction proceeds, Jos. A. Bank will issue 4.7 million shares of stock to Golden Gate at $56 per share, only to repurchase nearly the same number of shares from the market at $65 per share, directly destroying more than $40 million of value. Furthermore, the letter claims that Jos. A. Bank used misleading financial guidance to justify the deal and also criticizes a $50 million breakup fee, which Golden Gate Capital will receive if Jos. A. Bank winds up accepting a more favorable offer.

“With the announcement of an agreement to acquire Eddie Bauer you have confirmed the suspicions we feared most and laid out in our recent lawsuit: the management team and board of Jos. A. Bank are willing to engage in desperate tactics in an effort to protect their jobs and paychecks in blatant disregard for the best interests of shareholders,” states the letter. “Make no mistake about it – we intend to hold the Board accountable for its actions both through the upcoming proxy vote and through direct actions in court.”

Eminence Capital filed a lawsuit in January 2014 to force Jos. A. Bank to accept a proposed $1.6 billion merger with Men’s Wearhouse.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...
FINANCE

Lumber Liquidators has solid Q4; will open 30-40 stores

BY Dan Berthiaume

Toano, Va. – Lumber Liquidators reported impressive results for the fourth quarter and fiscal year 2013. For the quarter, net income increased 50.6% to $20.8 million, from $13.8 million in the fourth quarter of the prior year.

Net sales increased $47.8 million to $258.4 million in fourth quarter 2013, from $210.7 million in fourth quarter 2012. Same-store sales increased 15.6% for the quarter, driven by an 8.6% increase in the number of customers invoiced and a 7% increase in the average sale.

For the full year, net income increased 64.4% to $77.4 million, compared to $47.1 million in the prior year. Net sales increased 23.0% to $1 billion in 2013 from $813.3 million in 2012, as same-store sales increased 15.8%.

Looking ahead, Lumber Liquidators affirmed previously issued guidance that it expects to open a total of 30 to 40 new store locations and remodel of a total of 25 to 35 existing stores, all in the “store of the future” format. Net sales are expected to be in the range of $1.15 to $1.2 billion and same-store sales are projected to increase in the high single to low-double digits.

"We achieved record highs for net sales and operating margin in the fourth quarter as we continued to gain share in a highly fragmented market,” said president and CEO Robert M. Lynch. “We gained further traction in our key, multi-year strategic initiatives while continuing to deliver value and legendary service to each customer. Customer demand was inconsistent during the quarter, with certain regions of the country periodically impacted by difficult weather conditions. Nevertheless, our store team, with support across the organization, delivered an unprecedented level of individualized customer service and focus on operating results.”

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

Polls

Consumer confidence is high. Is that reflected in your stores’ revenues?

View Results

Loading ... Loading ...