Which Store Would You Choose?
Speaking of niches (see “Unfazed by Economy” below), I was struck by the results of a recent study by the Zogby organization. They posed a simple question to consumers: If you could only shop at one department store for the rest of your life, which store would you choose?
It’s not surprising that Wal-Mart (26%) and Target (22%) topped the list, particularly given current economic conditions. But if you look a little deeper into the data, interesting patterns emerge. For example, Both Wal-Mart and Target compete in the discount retail category. But Wal-Mart loyalists tend to have lower incomes, are less educated and travel less than Target customers. Wal-Mart shoppers favored McCain. Target shoppers chose Obama.
Costco loyalists look more like Target shoppers in terms of income, travel profile and political views. As Zogby says, “Costco is the Wal-Mart alternative for Democrats.” By contrast, Sears might be described as “the Target alternative for Republicans.” Its shoppers are older, and more conservative, and even more likely than Wal-Mart customers to be homeowners and gun owners. They’re also more likely to be men (as opposed to JC Penney loyalists, who tend to be female).
My point isn’t to suggest that these retailers should build their appeal around simple dimensions such as age, income, political leanings or travel habits. (The Zogby poll didn’t go into the breadth or depth that a true brand identity exploration would). But the poll does reveal how people’s varying preferences lead them to naturally gravitate to one brand over another–even in somewhat commoditized categories. There’s not a brand on the planet that can’t leverage that powerful truth.
It may sound counterintuitive, but when growth stalls your response shouldn’t be to broaden your appeal, but to narrow your focus.



Very true. What’s so frustrating and interesting is our first impulse is to do just the opposite when times get tough.
Feels a lot like walking into quicksand. Your first impulse is to panic and grasp at everything. What you should really do is take a deep breath and focus your attention on the one sturdy branch within reach.
Comment by J — Thursday, March 26, 2009 @ 3:39 PM
I’ve narrowed my focus to Costco. And I’m not even a democrat.
I’m glad it’s not the only store out there, but I seem to spend more money and time there than any other store. They’re doing a good job.
Next would be the Apple Store, but while you can get an iPod at Costco, you can’t get 5 pounds of butter at the Apple Store. So, a vote for Costco.
Comment by MichaelT — Thursday, April 2, 2009 @ 8:59 PM