With my Nordstrom Visa, I earn $20 Nordstrom Notes every time I spend "$x" at other retail stores, or when I fill up the car with gas ... an expensive proposition last summer.
Today, I cashed in $80 of Nordstrom Notes on two shirts --- total cost, with tax, was $80.01 --- one of the shirts was about 60% off.
It is an interesting transition ... going from being an apparel merchant to giving me free merchandise for the right to harvest money from my transactions with Shell, Olive Garden, Kohl's, Apple, and my annual physical co-pay.
When we conduct the post mortem on the death of retailing (2003 - 2008 edition), we'll want to create a few powerpoint slides on this topic.
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Reminded Of This Grumpy Gem From 2015 And The Forced Transition To Loyal Buyers
I looked at the data. Prospecting Response Down Significantly Post-COVID. Ad-Costs Up 25% In The Past Three Years. Huge Circulation Cuts Amo...
Kevin,
ReplyDeleteI agree the credit devils(new term, yet?) are a problem for retail. However, retailers are trying to find alternate streams of revenue, especially in times when consumers are holding onto their purses and wallets.
So how do you go about doing that if you are ceo of a retail store? Unfortunately for many retailers, harvesting credit card fees seems easiest but I think in end it drives customers away, especially with aggressive campaigning by cashiers, or encouraging them to purchase else where to get "free" merchandise from retailer.
Of course your post led me initially down another flight of fantasy---Imagine rewriting Miracle on 34th street where Kris Kringle tells the mother to pay less for the toy at Gimbels down the street and gives her a Macy's card. Then you pan to the camera where she uses her Macy's card at Gimbels...
K