Empty Wallets And Empty Malls Leave Retailers Desperate

These days are very good times for bargain hunters, but not so much for retailers. Take a walk through your favorite shopping center or department store. You're guaranteed the deepest discounts you've seen in years. It's like Black Friday started a month ago. Could this be the silver lining in dark economic times? Most who work in retail would disagree. In a country where customer service is the bedrock of business, sales associates are losing their cool as customers curb spending and commissions shrink.

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Malls are virtually empty. One salesperson from a Nordstrom's in Costa Mesa, California said, "During the week, no one is here. It's almost pointless to work during the weekdays." And it's happening across the country. According to a recent Newsweek article, a fifth of the country's largest 2,000 malls are going out of business. Along with the rest of us, salespersons are afraid of losing their jobs and making ends meet. Retail workers still have to make a living under these harsh conditions and desperate times are definitely calling for desperate measures.

And for many the desperation is turning ugly. Some sales associates are turning on each other. At a Macy's shoe department in Newport Beach, a trickle of customers waited tirelessly to get their items checked out... not because there were a lot of shoppers, but because a greedy and uber-aggressive salesperson was trying to hoard the few shoppers to himself. One of the sales associates behind the counter was becoming extremely agitated and started to have a breakdown. The "greedy" sales associate, who I'll call Bob, had hopped around the store snatching customers in between sales pitches to snag all the commissions, so as each customer was ready to check out, they were stuck waiting for him. The other bothered sales associate, who I'll call Joe, had no customers waiting for him, but was called on to help check Bob's customers out. Joe started screaming "I can't help you" to Bob's impatient customers. He then yelled across the store to Bob "Come ring up your customers... you are not allowed to help a new customer until you finish ringing up your old ones!" The mood in the shoe department started getting very tense. One customer defensively reacted at Joe and yelled back, "I've been in retail for 10 years and that is not the way you treat your customers." Joe then pointed to his nametag and responded "ma'am here's my name... here's my name," challenging the customer to report him. The customer snaped back "I'm just saying you shouldn't speak to us like that." Joe responded, "I'm sorry ma'am I'm just trying to do my job. I'm very stressed." The same customer said back, "you're stressed, I'm stressed, we're all stressed." Amen lady!

A dear family friend of mine encountered another similar experience. Most customers at luxury stores have their own go-to salesperson that notifies you on the latest secret sale. They put items aside for you that you may love and buy knowing that in return you'll be theirs. That is, unless the other co-worker decides otherwise. My friend was confronted with this situation. She strolled through the couture section, looking for a good deal. As a salesperson approached to help, my friend immediately asked for John so they all know that she was off limits. The salesperson replied, "John is not here." In fact John wasn't, at least for another hour since he was only on his lunch break. The salesperson jumped on the opportunity and started helping my friend. Less than an hour later, John came back from lunch and, boy, was he was not happy. John and the other salesperson began a screaming match over who should help my friend. In the end John came up on top. Apparently the other salesperson assumed all was fair in couture and commission. Wrong! Not during these tough times, honey!

If you've been feeling down in the dumps lately, I suggest you strut your stuff at one of your favorite retailers. If no one else notices, the store employees will. Some of these salespersons should conduct self-esteem workshops because they sure are throwing it thick, thick, thick. At Stuart Weitzman the other day, I felt like a glam goddess. As I pored over the 30%, 40%, and 50% off pumps, I was being buttered up with compliments. From my sweater to my shoes - everything was "I love this, I love that," from the sales associates. Even when I tried on a cashew colored suede platform, which looked horrendous on me, they still "ooohed" and "ahhhed" over it. Unless they were admiring the shoe and not me, then that would mean I have serious narcissistic issues. Well then, moving on!

Ba humbug is the prevailing mood of the season because despite the upcoming holiday season, analysts are predicting the worst sales season in nearly two decades. In a new report by SpendingPulse, the retail data provider of MasterCard Advisors, overall apparel sales are down 19 percent from the same time last year. Shoe sales fell 11 percent. And electronics and appliance sales dropped a sharp 22.1 percent. The wealthy are being cautious too. Total luxury sales, including jewelry and high-end luxury stores, also fell 21.1 percent.

Retailers are pulling out all the stops -- from the unprecedented sales, free shipping, to the other incentives including $100 vouchers from luxury brands like Fendi and La Perla. However, these incentives have yet to spur spending. Also, various retailers are becoming more rigid in their return policy. You can pretty much forget about returning something without a receipt. And if you are able to return an item, you'll most likely get store credit. Retail stores are having a difficult time just selling items so think twice about your purchases because they maybe yours forever!

As our economy grows more unstable, so will our shopping experiences. Beware of stressed out retail employees and narcissists, but try to cut them some slack too. After all, no one is safe from this downturn, unless of course we're too big to fail. And if you're Campbell's Soup.

Comments

[rabiddog6708]

It's called Deflation. And it is just as bad for the economy as inflation because it means companies that produce the junk we buy won't continue to do so (or as much) because their profits are minimal when they have to slash prices becaue demand is low cause no one has money (or credit). Years over outsourcing of high-paying jobs and stagnant wages for the rest....combined with consumers having tapped out their credit (and banks crippled by reckless lending)....have brought us to where we are now....the economy is going down like the Titanic....Captain Dubya hit the mother of icebergs while blindly steaming full speed ahead with deficit spending. And there's not enough lifeboats.

[LMPE]

I'm not a mall person. Alicia Silverstone's character in "Clueless" is probably wishing that she hadn't overspent.

[Cos1]

This article is addressing experiences at up scale stores and this should have been indicated in the heading. There aren't commissions at most stores mid class people shop at.

I've been to both up scale and big box stores where the associate expects you to wait while they finish their personal phone conversation or they are clustered gossiping about the customers. Stores aren't kept neat and clean anymore. They leave trash from shipping boxes on the floors for customers to carefully step over as they restock or set up a display. Management types stand in the middle of an aisle and dress down an associate or have meetings with other department managers while customers try to maneunver around them. Carts are left in the aisles for customers to find their way around. Rarely have I seen any associate that anxious to help a customer. The economy is not the only reason people aren't shopping in stores. There is no more customer service.

[cylindar]

You should do what my family does. We do not give presents on Christmas. Thus we save big bucks and the urge to buy junk even at low prices. We also don't get trampled to death in malls or shot dead and or have to worry about our cars getting dented in parking lots. The best time to buy is after Xmas when the deals are really good and their are no lines. America, Wise Up!!!

[ManwithaParachute]

How much good has a business degree been to these automatons? All these business which are focusing on cutting costs cannot wrap their head around growth. All the cost cutting at the bottom layers are at a max and no come the tiers above. Everytime a business cuts an employee in America they are cutting a consumer. Without government intervention this cycle continues indefinitely.

Think about it folks. When you go to the grocery store those self serve check out lanes used to have people working at them. All those online sales might result in some minor savings today but when the retail stores close there will be less local jobs, more for lease and build to suit signs and less asset value in real estate and more foreclosures..... Does anyone see a pattern here? Cost cutting...

Just make sure you pay the big boys as much money as possible....

[maryhaze]

i don't shop in stores, ever. if i can't find it on the 'net, i don't need it.

[curiousasheck]

The Rich have more to lose then average Americans who have slammed their wallets shut to practice fiscal responsibility.

Should be interesting to see how this scenario plays out.

[dadd]

The best sales associates are the ones which leave you alone. I hate when they follow you around.

[loril]

We have not been able to give one another holiday gifts for about 6 years. We concentrate on modest gifts for our daughter. Our friends are mostly in a similar crunch and appreciate that no gift exchange is expected (or desired). I participate in a cookie exchange with friends, instead. We have a nice family dinner with extra treats and favorites.

My husband and I generally look at our paltry savings account and decide if we can afford something for the house as a "family gift". If we can swing it, we generally purchase this item after Christmas (perhaps late January or February) when the prices go down. We may allocate a portion of our tax return for this "splurge". (For instance, we have no dining room set...and have not had one for years. I would love to have a "real grown up dining room" now that I am in my 40s! So this might be the year...or, it might not. Can't get that money to go too far.)

I buy clothing about twice a year. Once, around my birthday for summer stuff. And once after the holidays for deep discount fall/winter stuff.

And I used to be a shopper when I was young. But, times change.

[Jonni Rae]

Retailers are already letting salespeople go in advance of what they assume will be a bad Christmas season. I was in T.J. MAxx two weeks ago, and struck by the fact that clothes were all over the floor, price tags not on merchandise, and the store was not crowded at all. This is usually a very neat and orderly store and I was surprised. Then I saw the registers -- usually five going, now only two. The sales girl I asked about a price said she was the only one on the floor. It is very sad, really, because I am on a pension and cannot afford to buy much, am thinking about not buying anything this year, except for my three year old grandson (Christmas is for kids!} but then I think of the salespeople losing their jobs, possibility of store closings, making it harder for people, especially those without cars, to buy the things they need. What a mess!! I wonder what others are deciding to do this season?

[mlaiuppa]

I make it a point never to enter a Mall between the day before Thanksgiving and the day after New Year's. I plan all of my gift shopping far ahead to take advantage of sales and as I know the wants of my recipients. And happily for me, my recipients are now having to cut back on their gift giving so my gifts are very well received. We are also doing a lot more craft and home-made gifts as well as "service" gifts, such as lawn mowing and yard work for each other.

[JBS]

If you work for one of the big box stores, you don't have to worry about commissions. You ain't gonna' get any.

[Bitsko]

Interesting, but my and my wife's "shopping experiences" have never included these places. We've been too busy for years saving to go to the grocery store. It's not like this deep recession just happened yesterday.

[wendy31]

Agreed. It's DEF. getting worse, but many people have been hurting for a long time. Mainly working people.

[loril]

Exactly. How many of us frequent boutiques where we have personal lackeys at our beck and call? And it is no wonder the sales clerks are freaking out. Their pay, even in "good times" is awful.

[tomas0808]

Most people's wallets have been empty for thirty years. Some kept buying on credit. Not me. Eat the Rich

[Samalabear]

Customer service? Forget it. A.C. Moore came to Long Island (finally) about four years ago. Customer service was incredible. The yarn department was a happening place with someone there to teach you how to knit and crochet and tell you about the yarns.

Anyway, fast forward to this past Monday the 24th. I went to my A.C. Moore in the hopes of getting started right away on an order from my online store. I figured I would save the shipping cost, plus A.C. Moore had this yarn on sale, so it would have been the same price as online, and I don't pay sales tax either way (resale number). So I get there and they had every color in the particular yarn I needed but not the color I required. I looked for a sales associate anywhere in the store that might be able to help me with possible stock in the back or on storage shelves they have on the sides of the aisles. It was fruitless and I didn't have endless time to walk the entire store trying to find someone who was even knowledgeable. I left and fortunately got home early enough to put the order in online at the discount warehouse site and have it picked up that day. Waste of time and gas. A.C. Moore is having difficulties and they're closing stores. Problems like inadequate and/or helpless associates makes it worse.

[rucognizant]

Oh dear.........AC Moore came to Bangor Maine, two or 3 years ago, and I haven't yet had the disposable income to drive up there ( 130 mile round trip) and stock up on things. I used to go to the NJ store all the time.