Is The Era of Loyalty To Consumer Brands Over?
Expert Reveals Low Prices Have Killed Brand Loyalty
Visit this company: www.newsandexperts.com
September 8, 2011 (Investorideas.com Newswire) - Darlene Quinn knows what it's like to be loyal to a brand name.
Quinn, a former senior executive with the Bullocks Wilshire department store chain understands the inner workings of the fashion retail industry as well as she does consumer trends, and her conclusion based on what she's seeing in the marketplace aren't encouraging for some of America's oldest brands.
"Some of our most recognized and best-loved brands are falling victim to an economy in which price is the paramount concern for consumers," said Quinn, author of Webs of Fate, a novel about the retail fashion industry from Greenleaf Book Group (www.darlenequinn.net). "We've ended the era of the brand-loyal consumer, and entered the age of low prices."
Quinn's argument is that major national brands and some regional brands will soon watch their final sunsets as the hunt for low prices currently outweighs old-fashioned consumer brand loyalty.
"Brand loyalty used to mean something in the retail business," Quinn said. "We are now hardwired to look at paying less than full price. The status symbol has become how much did you save?' Although there are many of us who are less than happy with the outcome and who are willing to pay more for quality and service, it will take a long time, if ever, for a reversal. I would love to see the return of brand loyalty, but with the economic outlook starting to dim again, I don't see it happening."
Brands recently targeted by the Wall Street Web site 24/7 for fading away include two great American traditions:
- A&W Grills A&W Restaurants is owned by Yum! Brands, a fast food holding company that also owns KFC, Pizza Hut, Taco Bell and Long John Silver's. A&W was originally founded in 1919, and the company helped introduce the "drive-in" fast food concept. It was so successful that they started selling their sodas in cans in 1971, a side of the business that was sold to Dr. Pepper/Snapple a decade later. After World War II, the chain had 450 franchised locations, which has since dwindled to 312 US stores by last year. In the era of the mega franchises, like Subway and McDonalds with about 35,000 locations each, A&W can't survive. The brand has been for sale since January, and if a buyer isn't found soon, the drive-in could be closed forever.
- Sears Sears, officially named Sears, Roebuck and Co., is an American chain of department stores which was founded by Richard Warren Sears and Alvah Curtis Roebuck in the late 19th century. As Wal-Mart became the dominant department store during the 1990s and 2000s, Sears began to struggle, so the company merged with Kmart in early 2005, creating the Sears Holdings Corporation. The problem is that joining forces strengthened market share, but not revenues. Two dying giants who merge only create one larger dying giant. The competition between the two brands continued, simply under the same roof, with Sears losing the battle. Kmart reported a 1.6 percent decline in sales in the first quarter of 2011, while Sears dipped 5.2 percent. The end result? Look for New CEO Lou D'Ambrosio to shutter the lesser performing brand, Sears, and use the additional resources to bolster Kmart.
About Darlene Quinn
Darlene Quinn is an author and journalist from Long Beach, California. Her novel, Webs of Fate is about the back-room wheelings, dealings and double-dealings behind the scenes of a national retail chain, based primarily on real-life people and companies Quinn encountered during her career in the retail industry. As part of a nine-member management team for the Bullocks Wilshire Specialty Department stores, Quinn has the insider's perspective on the rise and fall of major department stores. She is currently embroiled in the battle for Macy's to restore the Marshall Fields store brand stores that they purchased and turned into Macy's locations in Chicago.
You are more than welcome to run this article as is, let me know if you need any images to go along with it. If you would like to interview Darlene Quinn or request a review copy of Webs of Fate contact Ginny Grimsley at email@example.com.
National Print Campaign Manager
News and Experts
1127 Grove Street · Clearwater, Florida 33755
Phone: 727-443-7115 EXT 207
This news is published on the Investorideas.com Newswire - a global digital news source for investors and business leaders
Disclaimer/Disclosure: Investorideas.com is a digital publisher of third party sourced news, articles and equity research as well as creates original content, including video, interviews and articles. Original content created by investorideas is protected by copyright laws other than syndication rights. Our site does not make recommendations for purchases or sale of stocks, services or products. Nothing on our sites should be construed as an offer or solicitation to buy or sell products or securities. All investment involves risk and possible loss of investment. This site is currently compensated for news publication and distribution, social media and marketing, content creation and more. Contact each company directly regarding content and press release questions. Disclosure is posted for each compensated news release, content published /created if required but otherwise the news was not compensated for and was published for the sole interest of our readers and followers. More disclaimer info: https://www.investorideas.com/About/Disclaimer.asp Learn more about publishing your news release on the Investorideas.com newswire https://www.investorideas.com/News-Upload/
Additional info regarding BC Residents and global Investors: Effective September 15 2008 - all BC investors should review all OTC and Pink sheet listed companies for adherence in new disclosure filings and filing appropriate documents with Sedar. Read for more info: https://www.bcsc.bc.ca/release.aspx?id=6894. Global investors must adhere to regulations of each country.