Yahoo Ames board people have investments on BONT. They are also reporting on business conditions and sales receipt numbers they got themselves at Ames. Most investors(middle class) spend between $60-$115. While most Spanish and black customers(20% of population) AMES targeted spend average of $20(price points of individual item has something to do with average transaction, Caldor priced at $30 per apperal item, while Ames at $20). Yahoo people also did not distinguish between large stores and smaller old stores. So, the reports are more hype rather than scientific.
Over 100 cars in front of an ames converted Caldor store is not a busy(300 car) parking lot. That is because AMES targeted the smaller group of customers, so they can not expand their volume no matter how hard they tried. I have often been puzzled in the last 5 years.
In general, Ettore had continued to target low income customers, rather than astute shoppers. Recent good fortune were merely from social security crowds and weekend sales events(mark downs) on Tuesdays, Saturday and Sundays(where is Friday?). Store managers were not aware of advertising(timing) draws crowds, so even if they use flexible time(they call in part time workers) they don't have enough hands during rush hours. Store managers should have known TV advertising is now a way of life at AMES.
The reason for this deficiency(lack of middle class customers) is no brand name advertising. The concept of limited upscale is that merchandise of small quantities have famous brand names to get affluent customers(Gucci brand, even). Ettore, take notice; learn marketing on customer targeting(middle class is the largest group). AMES had to rebuild its image, Zayre never did. People will not be caught dead in Zayre stores, was the problem. Maybe the newly instituted Safeway friendliness will help(Give customers more respect that they deserve). Treat them as if they are super rich, to loosen their purse strings(boutique technology). |
