WSL Strategic Retail Previews How America Shops(R)-2008 at the National Retail Federation...

WSL Strategic Retail Previews How America Shops(R)-2008 at the National Retail
Federation Big Show
HOW AMERICA SHOPS(R)-2008-ANARCHY - SETS THE STAGE FOR THE FUTURE OF RETAILING

NEW YORK, Jan. 14 /PRNewswire/ -- "Today's retailing world is chaotic and
confusing, as evidenced by Holiday 2007 retail sales results," Wendy Liebmann,
CEO of WSL Strategic Retail told an audience at a presentation at the National
Retail Federation (NRF) Big Show at the Jacob K. Javits Convention Center in
New York today.
In previewing How America Shops(R)-2008-Anarchy, the 11th bi-annual
shopper study from New York City-headquartered retail marketing consultancy,
WSL Strategic Retail (www.WSLStrategicRetail.com), Ms. Liebmann continued,
"2008 sets the stage for the future of retail: full of contradictions, full
of new roles where retailing's best practices are no longer relevant.
American shoppers want what they want, where they want, when they want it.
It's anarchy! There's a new shopping structure and cycle at hand."
This anarchy is a result of the difficult time in which American shoppers
currently live -- a time that had been defined by six years of unforeseen,
unpredictable and highly unexpected factors: the first attack ever on mainland
American soil (September 11), the collapse of major US corporations (Enron,
MCI, World Com, Arthur Andersen), the loss of credibility of religious
institutions, on-going wars, natural disasters such as Hurricane Katrina, on-
going threats of terrorism and assassinations, the everyday seesawing of gas
and oil prices and, the last straw, the mortgage market collapse.
As a result of this, key findings of the Study revealed:

-- ANARCHY REIGNS -- Americans face a crisis of confidence everywhere they
turn. They cannot control the big things such as oil prices, falling
home values and mortgage costs and rising property taxes, so they want
to control the small things. So they are watching what they spend on
everything.

-- PRUDENCE REMAINS -- Shoppers are cutting back on their shopping trips
and the categories that they buy. Across the board shoppers are cutting
back on almost everything. Except for food and their pets, all other
expenditures are considered discretionary and therefore dispensable.

-- MIDDLE AMERICA SHUDDERS -- The middle class is shopping more like lower
income shoppers. Middle market supermarkets and department stores are
being squeezed because shoppers can get a lot more for less at big box
stores and smaller, well edited stores are easier to shop.

-- NEW VALUES EMERGE -- Shoppers have become comfortable with their
choices to buy less and only what they can afford. Much of the
designer craze is over. This is manifest in other trends such as
eating healthier; charitable disposal of old clothes, furniture through
donations, recycling or resale, and using ecofriendly products -- light
bulbs, energy saving appliances and biodegradable packages. Negating
increased shopping and acquisition, consumers are disposing of things
as they acquire fewer new things. Consumers will not be buying more of
what they already have. It must be really new and exciting to justify
the purchase.

-- TRUST WHO? -- NOT YOU -- With so much information available through
blogs, shopper ratings web sites, authorities such as Consumer Reports,
Edmunds.com, one would think consumers would have information overload.
Not so, they are tapping into everything, everywhere to make sure that
they are making responsible, economically correct buying decisions.
They will not rely on a retailer or manufacturer's own information or
store associates. In fact, they don't trust them very much at all.

-- WINNERS AND LOSERS APPEAR ... FOR THE MOMENT -- The momentary winners
are department stores as they return from the dead. Middle income
shoppers now have JC Penney and Kohl's. High income shoppers have Saks,
Neiman Marcus and Nordstrom. Macy's remains a big question. Drug stores
redefine themselves with better brands and better service and as a
result are attracting more shoppers. The losers are the mass
merchandisers such as Target and Wal-Mart because shoppers are cutting
back weekly shopping trips factor. Also because of the impact of fewer
trips "losers on the verge" are specialty stores like Starbucks and
booksellers like Barnes & Noble.

How America Shops(R)-2008 was conducted on-line between October 25, 2007
and November 1, 2007 among 1600 consumers, 1300 women and 300 men, drawn from
a nationally representative sample.
WSL Strategic Retail, which this year marks 22 years in business, launched
its How America Shops(R) studies in 1989, to chart the evolution of American
consumer shopping habits and attitudes. Founded by Wendy Liebmann, WSL
Strategic Retail is a global consulting business offering retailers and
manufacturers strategic solutions to marketing problems by solving challenges
through the application of proprietary tools, including: up-to-the-minute
understanding of shoppers, knowledge of global trending, exclusive access to
retail decision makers and ideation techniques. Contact WSL Strategic Retail
at 212-924-7780 or visit www.WSLStrategicRetail.com
How America Shops(R) is a registered trademark of WSL Strategic Retail,
NYC
SOURCE WSL Strategic Retail

Melissa M. Krantz of Krantz & Company, +1-917-653-6716,
mkrantz@krantzandco.com, for WSL Strategic Retail